Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Index Funds are Your Friend

Index Funds are Your Friend - Every stock market or stock exchange offers indexed funds and these index funds are more beneficial to you as a new investor as they...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

Federal Savings Bonds

Many people have a regular savings account in a bank and are discouraged by the very low amount of interest they get annually. They want to be able to make a higher rate of interest, but don't want to put their money in the stock market because of its huge fluctuations in recent years. The stock market is just too big of a risk for most people to take with their hard-earned money. Now, there is another way to earn interest on that money while keeping it perfectly secure; buying U.S. Savings bonds is the answer because they offer a higher interest rate and are completely safe. The U.S. government will never go broke or renege on paying the full amount of the bonds when they come due.

Besides the security of savings bonds, another advantage that they have over regular savings accounts and the stock market is that savings bonds are state and local tax free, and federal tax deferred. Dividends paid by stocks, or interest paid on a savings accounts, are taxed as regular income by city, state and federal agencies, but savings bonds are completely exempt from city and state taxes, and federal taxes don't have to be paid until the savings bond is redeemed.

There are two main types of bonds offered by the U.S. government: The Series I bond and the Series EE bond. The I bonds, or inflation indexed bonds, have features that make them attractive to many investors. They are sold at face value price and can earn interest for as long as 30 years. I Bond earnings are added every month and interest is recalculated every six months for the additional inflation rate. The only drawback is that if someone wants to cash in the bond before five years, they are subject to a 3-month interest earnings penalty.

On the other hand, Series EE bonds earn a fixed rate of interest that does not correspond to the state of inflation. Electronic EE bonds (those bought online) are sold at face value price like the I bonds, however, EE bonds purchased offline can be bought for half of their face value price.

Discuss It!

adrian hill said:

my mother had some federal savings bonds in my name do u think u can find them

Eric Esposito said:

On tresurydirect.com there is a link for treasury hunt which is a link for lost or unclaimed savings bonds

192.168.1.1|192.168.1.1|192.168.1.1|192.168.1.1 said:

On the other hand, Series EE bonds earn a fixed rate of interest that does not correspond to the state of inflation. Electronic EE bonds (those bought online) are sold at face value price like the I bonds, however, EE bonds purchased offline can be bought for half of their face value price.

Celebrities Net Worth, Bio, Wiki Salary, 2017 - Celebrity Net Worth said:

Truly welcome this magnificent post you have suited us.

metal lathe for sale said:

Any way I'll be subscribing to your sustenance and I trust you post again soon. Much thankfulness to you for demonstrating your focuses and giving this data.

Bhim App said:

The BHIM app is currently available in English and Hindi

Solid Streamz apk | Globe Switch APK said:

Get some most exciting android powered apps or game for your phone or tablet using free apk download site

showbox for iphone | showbox for ipad said:

You may already get enough reasons about why you should download showbox on your device.

top reviews said:

I am a thing from time long past conditions gatherer and I once in a while read some new articles on the off chance that I discover them mesmerizing.

free walking tour stockholm said:

The U.S. government will never go broke or renege on paying the full amount of the bonds when they come due.

get followers | like4like said:

Do you believe this is conceivable? Yes, it is, however just in the event that you select the correct showcasing apparatuses.

bmw 330ci car covers said:

What could fill somebody's heart with joy other than perusing such perfectly created blog, for example, this.

search engine optimization services said:

Been searching for such a remarkable blog like this for a long time.

http://www.40tbfacts.com/melanotan-protects-harmful-sun-radiation.html said:

What is so good about this blog is its uniqueness.

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Proof Of Concept

Proof Of Concept – (Proof-of-concept) Referring to the types and applicability, reliability or evidence, verification, confirmation and corroboration, even substantiation, or resilience of data, fact etc. Also called POC, showing its usefulness and applications, features and possibilities, allowing to an extent no to low risk exposure and exploration, prospecting if...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com