How to Buy US Savings Bonds
Learn about the types of US Savings Bonds., Consider Type EE Bonds., Think about Type I Bonds., Recognize the similarities in Type EE and Type I bonds.
Step-by-Step Guide
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Step 1: Learn about the types of US Savings Bonds.
There are two different types of US Savings Bonds the Treasury Department offers.
Learning about these two types of bonds can help you figure out the best type of bond for your needs.
The two types of bonds are EE Bonds and I Bonds.There are many similarities between EE and I bonds, but there are a few difference including the form in which they come and the amount of interest earnings.You can no longer buy savings bonds at financial institutions such as banks or credit unions. -
Step 2: Consider Type EE Bonds.
Type EE bonds are only available online and have a variable rate of interest depending on the purchase date.
If you want a fixed rate of interest return and the convenience of tracking the bonds online, Type EE bonds might be the right choice for you.Paper EE bonds are no longer available.
You can only buy EE bonds online at the Treasury Department’s website.EE bonds earn a fixed rate of interest that is reset every six months after May and November of the year.
Since 2005,the rate has varied between
3.7% and
0.1%., Type I bonds are available in paper form if purchased using your IRS tax return.
If you want a combined rate interest return and a physical paper bond, Type I bonds might be the right choice for you.You can buy Type I bonds using your IRS tax refund at face value or online at the Treasury Department website.Type I bonds earn a combined rate of interest.This rate is based on a fixed rate of return either known when you buy the bond and an inflation rate that the Treasury Department calculates twice a year., Although the format and interest rates of Types EE and I bonds differ, there are many similarities between them.
Recognizing these similarities may help you to decide which bond type is the best for you.
The purchase price of each bond is the face value of the bond.
A $50 bond costs $50 if you buy it either electronically or using your tax refund.You can buy electronic bonds in any amount of $25 or more to the penny.
Thus, you could buy an electronic bond for $100.15.You can buy paper I bonds in $50 increments.You can buy up to $10,000 in electronic EE or I bonds each calendar year.
You may buy up to $5,000 in paper I bonds with your tax return.You may redeem the bond after 12 months.There may be some penalty for cashing in your bond early, except if used for educational purposes.Your bonds earn interest monthly and this is then compounded semiannually up to 30 years.You must pay federal taxes on your savings bonds but do not need to pay state or local taxes on them. -
Step 3: Think about Type I Bonds.
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Step 4: Recognize the similarities in Type EE and Type I bonds.
Detailed Guide
There are two different types of US Savings Bonds the Treasury Department offers.
Learning about these two types of bonds can help you figure out the best type of bond for your needs.
The two types of bonds are EE Bonds and I Bonds.There are many similarities between EE and I bonds, but there are a few difference including the form in which they come and the amount of interest earnings.You can no longer buy savings bonds at financial institutions such as banks or credit unions.
Type EE bonds are only available online and have a variable rate of interest depending on the purchase date.
If you want a fixed rate of interest return and the convenience of tracking the bonds online, Type EE bonds might be the right choice for you.Paper EE bonds are no longer available.
You can only buy EE bonds online at the Treasury Department’s website.EE bonds earn a fixed rate of interest that is reset every six months after May and November of the year.
Since 2005,the rate has varied between
3.7% and
0.1%., Type I bonds are available in paper form if purchased using your IRS tax return.
If you want a combined rate interest return and a physical paper bond, Type I bonds might be the right choice for you.You can buy Type I bonds using your IRS tax refund at face value or online at the Treasury Department website.Type I bonds earn a combined rate of interest.This rate is based on a fixed rate of return either known when you buy the bond and an inflation rate that the Treasury Department calculates twice a year., Although the format and interest rates of Types EE and I bonds differ, there are many similarities between them.
Recognizing these similarities may help you to decide which bond type is the best for you.
The purchase price of each bond is the face value of the bond.
A $50 bond costs $50 if you buy it either electronically or using your tax refund.You can buy electronic bonds in any amount of $25 or more to the penny.
Thus, you could buy an electronic bond for $100.15.You can buy paper I bonds in $50 increments.You can buy up to $10,000 in electronic EE or I bonds each calendar year.
You may buy up to $5,000 in paper I bonds with your tax return.You may redeem the bond after 12 months.There may be some penalty for cashing in your bond early, except if used for educational purposes.Your bonds earn interest monthly and this is then compounded semiannually up to 30 years.You must pay federal taxes on your savings bonds but do not need to pay state or local taxes on them.
About the Author
Benjamin Ramos
Specializes in breaking down complex pet care topics into simple steps.
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