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The actual purchase of a government bond is fairly simple. Some research is necessary in order to decide which government bond is right for your needs. However, this is a good investment for anyone trying to save money for future events. There is a variety of bonds to choose.
1. Treasury Bills
2. Treasury Notes
3. Treasury Bonds
4. Series E Savings Bonds
5. Series I Savings Bonds
6. Series H Savings Bonds
The more common type of Treasury bond is the Series E Savings Bond. Many individuals will purchase this type of bond when they begin a family. As each child is born the purchase of a new bond in the name of the child presents itself. This will make a nice gift for any child upon reaching adulthood. The bond also comes in a variety of monetary denominations. The most common is the twenty-five dollar denomination and the fifty-dollar denomination.
The more common Series E Savings Bond is easy to purchase through your bank. The paid interest is through a fixed rate twice each year. They carry a maturity date of twenty years which makes it very popular when beginning a family. However, bonds held less than five years are subject to an interest penalty of three months.
Other families will take the option of the one thousand dollar bond and purchase one each year for the number of children they have. This is a worthwhile adventure because when the time comes to present these bonds to your children it offers a very nice nest egg for them to begin their own lives.
Other families who are able will continue to purchase the Series E Savings Bond in behalf of their children until they graduate high school. Children who are interested in attending further education will reap the rewards. The bonds are easy to cash and will provide for the children to pay for most if not all of their needs to finance a college education.
One of the main reasons government bonds issue to the public domain is for the government to balance the money they have already spent. These bonds are simply the debt obligation of the government to the citizenry. The return revenue generated through the bonds is another tool for the government to pay attention to government projects and needed repairs. |
Spend Less Than You Earn
Diversification