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What is a US Savings Bond?

What is a US Savings Bond?

United States savings bonds are debt securities bought by people to pay for certain government programs. Essentially, when she buys a U.S. savings bond, the buyer is loaning money to the government with a guaranteed promise that she’ll earn back the face value of the bond plus interest in the future.

Is a US Savings Bond worth it?

If you’re investing for the long term, a U.S. savings bond is a good choice. The Series I savings bond has a variable rate that can give the investor the benefit of future interest rate increases. If you’re saving for the short term, a CD offers greater flexibility than a savings bond.

Are US Savings Bonds Safe?

Savings bonds are among the safest investments, as safe as any government-backed type of investment such as savings accounts, CDs or other insured bank products. Savers should carefully check the interest rate offered by their bonds, since rates on different series can vary markedly.

Are savings bonds still a good investment?

Are Savings Bonds a Good Investment for Retirement? Savings bonds can be a good addition to your portfolio for retirement. However, the interest rates tend to be low because of their government guarantees. Other investments, such as stocks, tend to outperform savings bonds over time.

What are the cons of US savings bonds?

The major disadvantage of savings bonds is their low rate of return. You may be able to find higher interest rates from a range of other conservative investments, such as high-yield savings accounts that also have the backing of the U.S. government.

Can I transfer my EE savings bonds to another person?

Yes. The owner can transfer EE and I Bonds to another person with a TreasuryDirect account; however, you must wait five business days after the purchase date to transfer the bonds.

Are savings bonds still a good gift?

Financial gifts can help young people understand investments and appreciate savings with first-hand experience holding stocks or bonds. Savings bonds, 529 account contributions, gifting shares of stock and, of course, an envelope full of cash are all ideas for financial gifts.