Buying Savings Bonds

With a volatile economy some are looking for a risk free option to save for the future. One option available is to purchase savings bonds. US savings bonds carry the promise and protection of the US Government and guarantee an increase on your investment when the bond matures. Buying savings bonds has become easier than ever with the help of the internet.

By logging onto the Treasury Department website you can own a savings bond within 10-20 minutes. It is a large site and may take some time to find exactly what you are looking for. The first thing that they will ask you to do is create an account. This can be done on the site which they will confirm with an email. Once you have your log in details you simply enter it and you're in.

Once you have logged in you'll be introduced to all the possible savings bond options that the treasury has available. They even make a purchase express option available. All you need to do is enter the type of bond and your dollar amount. Once they have this information the options will come in droves.

Make sure you understand any restrictions on your bond before you purchase. Bonds come in varying time durations some exceeding 30 years. There are also penalties attached if you should cash a bond early so make sure you get some advice on what you are buying before you click the purchase button. Most bonds cannot be cashed for any amount within the first year with others carrying penalties for the first 5 years.

Savings bonds are generally thought of as the safest form of investment. They are backed by the full faith and credit of the US Government so payment is virtually guaranteed. However, long term savings bonds do run the risk of falling behind the rate of inflation so explore alternatives to add to your portfolio. You may also wish to consider bonds that are adjusted to the rate of inflation. There is slightly more risk but still an excellent chance of a pay off.