I Savings Bonds

There are many ways a person can save, and grow their money. A regular savings account is safe, but also pays a very low interest rate for your deposits. Mutual funds, and stocks are another way, but are a more risky investment but pays a higher dividend. Some people want a low risk way to save, and grow money. Government Savings bonds are a great way to save, and grow your money, at a very low risk.

I savings bonds, are a very low risk way to invest. When you purchase them you are they earn interest, and protect you from inflation, for as long as you own them. I savings bonds can be purchased at banks, savings and loans, credit unions, and most financial institutions. They also can be purchased on line directly through the Treasury Department.

I Saving Bonds are sold to the investor at face value. In other words a $100 bond is sold to the purchaser for $100. The bonds are sold at exact amounts. $50 is the lowest denomination ( $25 online) up to $5000, but at specified amounts. $5000 is the maximum amount that can be purchased in one calendar year.

The I-savings bonds compound interest every 6 months. This is to make sure that no investor loses money, due to inflation. This is why I -bonds are chosen over other municipal bonds because of no chance of losing value.

I-Bonds are sold with the idea that the investor will hang on to the bond till it reaches its 5 year maturity date. Early redemption ( less the 5 years ) is the only ways an I -bond can lose money. The bond will increase in value up to 30 years. After 30 years the bond no longer gains interest and should be cashed in, and reinvested, in something else.

I Bonds are a great gift idea for a child ,grandchild, or to save for college, a vacation, or other, long term expenses. It's a bad idea to purchase bonds, if you feel you will need the money earlier then 5 years. I Bonds are a safe way to grow and save your money, with very little or no risk at all