Control your personal finance   free website content | contact | privacylink partners
Home » Investing
Money articles

» Personal finance
» Credit cards
» Saving money
» Debt elimination
» Budgeting
» Investing
» Business
» Real estate
» Making money
» Miscellaneous
» Career
» Loans
» Promote your business
» Insurance
» Bankruptcy

» Archive

Savings bonds explained

By Jakob Jelling
Cashbazar.com

The difference between Series I and Series EE bonds.

One of the most commonly purchased types of bonds are the government-issued savings bonds. These saving bonds come from the U.S. Treasury if you are purchasing them from within the United States, and therefore the yields are generally fixed. Additionally, since you are borrowing the money from the federal government, savings bonds are an extremely low-risk way to invest your money for the long term. Savings bonds have differing maturity dates, so if you should be able to easily find a savings bond that is right for you. You should keep in mind, however, that these bonds are generally intended for long-term investments.

Savings bonds are different from many of the other bonds and notes that are on the market because in most cases you are not allowed to sell them before the maturity date. For this reason, you should only put money into savings bonds if you are ready to wait until the maturity date in order to get your investment money back.

If you're looking to purchase savings bonds, then you should probably look into buying either series I or series EE bonds. There are several differences between the two bonds, though the most notable difference is that the I bond was not introduced until 1998. This bond is indexed so that it will react to inflation. This means that you will not have to worry about inflation too much, as your bond yield will change to reflect these changes in the economy.

When you purchase an I Bond, you will be buying it at face value. You will earn interest on the bond every month. In most cases, you can wait to get your interest payments until after you decide to cash in the bond after it reaches maturity. These bonds are also even more difficult to transfer than the EE series bonds.

EE bonds differ from the I bonds in that they are purchased at half of the face value. Since these bonds will earn interest that varies based on the current economy, you will never know when the bond reaches its face value. This means that your bond could be worth more than face value when it reaches its final maturity date. Ideally, you should cash your Series EE bonds after they reach face value, but before the final maturity date when they stop earning interest.

About the author
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.

Search CashBazar

Google
 
Web www.cashbazar.com


Latest money articles

» Controlling the price changes in futures markets
The lock-limit is one way that the markets can be controlled.

» How much will price changes effect stock trading?
Price elasticity is an economics term that refers to the way that price changes of stock can affect the demand for that stock.

» Large volume trading in steps
Program trading is a term that is also used in at least two different (though similar) meanings.

» How many stock options are available?
Open interests are not a feature of all stock market trades. In fact, open interests are calculated based on options and futures trades.

» Protect your portfolio from large losses
If you are worried about the stock market, then you might want to consider portfolio insurances.

» Insure your investment without limiting returns
Are you looking for a way to trade on the stock market without having to deal with all of the risks?

» Regional funds explained
Increase your portfolio diversity with funds from other regions.

» What is a derivative?
Invest in commodities without buying the commodities themselves.

» What is an option?
An option is an agreement that a commodity or stock will be available for purchase at a set date.

» Should I always pay a commission when buying mutual funds
There are three main types of mutual funds when it comes to commissions.

» Find the lowest risk investment portfolio
If you're trying to find a good investment portfolio, then you may want to look at the Treynor measure.

» The difference between PAX World Funds and The World Funds
The first type is purchased through the company PAX, and these funds focus on socially responsible companies.

» The Alpha factor explained
A new method of differentiating between different investments.

» How good is your planned investment
A company prospectus is a legal document that has been filed by the company that you might be thinking about investing in.

» How do I find the best investment advisor?
If you're looking for the best investment advisor for you, you should make sure that you pay attention to the type of investments that that advisor usually recommends.

» How to find the best full-service stockbroker - ask questions
Before you decide who you should choose for your full-service stockbroker, make sure that this is the best option for you financially.

» Investing in commodities
Investing in commodities is not too hard to do - the real problem comes in when you are trying to decide which commodities you should invest in, and when it is better to buy or sell a particular product.

» Don't wait to get your retirement payments!
If you're looking for an annuity, there are a variety of different annuities to choose from.

» Multisector bond funds explained
If you are looking to invest in bonds, but you are not sure that you want to deal with making all of the purchases on your own, bond funds might be the right option for you.

» Private annuity explained
The biggest difference between a regular annuity and a private annuity is that private annuities take place between two individuals, instead of between an individual and an insurance company.

» Avoid estate taxes with a life insurance trust
If you're looking for another way to insure yourself with a life insurance policy that will avoid any taxes after your death, then you should look into getting a life insurance trust.

» What is a Section 1035 policy exchange?
Don't lose insurance money when you change policies.

» Who should consider annually renewable term life insurances?
If you're looking for a good insurance policy, then you should probably take a good look at your financial situation, and at what you can count on being your situation in the future.

» Death benefit only plan explained
If you need life insurance, but you are not able to afford the regular price for life insurance, then you might want to look into a death benefit only plan.

» How to save money on your homeowner's insurance
In the case of homeowner's insurance, the most common way to reduce the amount of money that you will be paying each month is to increase your deductible.


Make money online

Please visit Sitetube.com and learn how to profit from your website.