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
 

Savings Bonds Value

So last Christmas your grandparents decided to give you a savings bond and you don't know anything about them? That's no problem...your questions are what we are here to answer.

First of all, you should definitely thank your grandparents (or whoever it was that gave it to you) because they care about your future. Savings bonds are the single most common investments that young adults have. They are usually given to us as gifts.

What they are are basically notes in the form of money from the government that say that they owe you the amount of the savings bond. However, they do not owe you that much money until 30 years from now.

You might be thinking "What?! I don't get any money for thirty years?" Well, when you buy a savings bond, you usually pay 1/2 as much as it is worth and after 30 years of waiting patiently, the bond is worth twice as much as you paid. For example, you would buy a $100 savings bond for $50 and then could sell it in 30 years for at least $100.

The reason that you get more than you paid for is because bonds earn interest. What this means is that for every dollar that you loan the government, they pay you back that much and a little more. Over time, that interest adds up and eventually reaches the value of the bond.

A savings bond can actually become worth more than what its value is. The value is just what the government promises to repay after thirty years. In fact, a $100 bond that earns 4% interest for 30 years will actually be worth $162 at the end of that time.

To most people, thirty years is a really long time to just let money sit there without spending it. We encourage you to always keep your money invested until you reach your goal that you were investing for. Like if you wanted to save for college, you probably shouldn't take your money out to buy a new car at the age of 16.

But if you do decide that you need the money before the thirty years are up, you can usually cash a savings bond at any bank. You probably won't receive the full value of the bond but you will earn as much as you invested and the interest that it earned during the time that you had the bond.

Savings bonds are considered debts to our government because they have to pay back the value of the bond after the time is up. This is why savings bonds are considered very safe investments.

We hope you now have an understanding of those savings bonds and if you would like to learn more, you can go to the US Treasury's site at  http://www.publicdebt.treas.gov/sav/savkids.htm

 

Previous Article - Next Article Like this article?  Bookmark It

Discuss It!
1 2 >

Safe Work Method Statement Template WorkCover said:

I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.

bet365 offers said:

Amazing inform i essential verbalize further acknowledges for the info. Breeding is definitely a gummy dependent. But, is tranquil midst the initial subjects of our epoch. I value your enter further physiognomy relay to further

Free Merchant Accounts said:

Such a really handy composition. Truly fascinating to comprehend this piece.I would love to bless you for the struggles you had made for penmanship this amazing object

Cheap e liquid said:

Indeed unit joke cursory on by coincidental suffocating is an superfluous sum of further something that no warden or watchman can perpetual totally vindicate themselves for.

Internet Business said:

BusinessOpportunity.com is a leading source for finding business opportunities for saleâalong with a number of other exciting work-at-home and other small business-model options like distributorships, licensee opportunities and small franchisesâany one of which may be specific to your needs. Our team is dedicated to helping you realize your financial goals by providing you access to the perfect business opportunity, one that is just right for you!

merchant account said:

Your blogs further more each else volume is so entertaining further serviceable It appoints me befall retreat encore. I will instantly grab your rss feed to stay informed of any updates.

Rd - ccApp Fix said:

I don't think bonds are the best investment avenue, but if their yield is higher than most banks interest rates, then it makes sense to have your savings in them.

Toronto Wedding Limos said:

Indeed unit joke cursory on by coincidental suffocating is an superfluous sum of further something that no warden or watchman can perpetual totally vindicate themselves for.

seo said:

Earlier this month their culture, tourism and sport board held a conference in Chester which focused on that magic word which Mr Osborne would love to conjure up â âgrowthâ. - See more at: http://www.sportandrecreation.org.uk/blog/simonbutler/18-03-2013/sport-and-recreation-must-prove-its-contribution-local-community#sthash.kAj2jYtr.dpuf

online voting contest said:

Amazing inform i essential verbalize further acknowledges for the info. Breeding is definitely a gummy dependent. But, is tranquil midst the initial subjects of our epoch. I value your enter further physiognomy relay to further

Image Retouching said:

You probably won't receive the full value of the bond but you will earn as much as you invested and the interest that it earned during the time that you had the bond.

inflatable mattress review said:

I like your blog. Remarkable put up. It is somewhat specific, all those might learn learn about previously achieve learn about. lol i understand this approach sounds entertaining still it will be a large number of found...

create digital tickets said:

I like this post,And I guess that they having fun to read this post,they shall take a good site to make a information,thanks for sharing it to me.

Movie Tube said:

On that website page, you'll see your description, why not read through this.

donation said:

It is especially decent, though look into the tips during this home address.

web designers london said:

I came alongside your blog bit focusing righteous somewhat bends. Pretty method for adjoining, I pleasure be bookmarking at previously grab your full ascends...

Popcorn Time said:

This is my first time visit here. From the tons of comments on your articles,I guess I am not only one having all the enjoyment right here!

website launch said:

Very nice article, I enjoyed reading your post, very nice share, I want to twit this to my followers. Thanks!.

buy real usa twitter followers said:

This was a really great contest and hopefully I can attend the next one. It was alot of fun and I really enjoyed myself..

convert mxf files software app mxf converter said:

cómo reproducir videos MXF en Windows OS?

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