U.S. Savings Bonds: A Smart Investment

If you’re looking for value in saving, be sure to look at the U.S. Savings Bonds Program. Today’s Savings Bonds provide a better rate of return, and are easily purchased.

Two types of Savings Bonds are available—the inflation-indexed Series I, and the traditional EE. The Series I is sold at face value and earns a fixed interest rate.

Series I U.S. Savings Bond & Series EE U.S. Savings Bond

The EE is sold at half of face value, and earns interest at 90 percent of the average return on 5-year Treasury securities, with rates adjusted semiannually to track market changes.

The Bonds come in denominations ranging from $50 to $10,000. Both have tax advantages: interest earned is exempt from state or local income tax; federal tax can be deferred until they are cashed or reach final maturity; and they are backed by the full faith and credit of the United States.

Best of all, Savings Bonds can be redeemed easily at most financial institutions at any time—for any reason—after they’ve been held six months.

Whether you buy over the counter at financial institutions, through
payroll allotments offered by thousands of employers, or by way of the Savings Bonds’ EasySaver Plan, purchasing Bonds has never been easier. Bonds can even be bought over the Internet at www.savingsbonds.gov.