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Saving money with U.S. Savings Bonds

By Jakob Jelling
www.cashbazar.com

U.S. Savings Bonds, issued by the US Treasury, are considered as a smart, secure and easy way to save money. They are also a concrete addition to one’s investment portfolio. According to a rough estimate more than 55 million citizens are enjoying the advantage of U.S. Savings Bonds.

Series EE Bonds and I Bonds are the two types of U.S. Savings Bonds available. Introduced in 1998, I Bonds are indexed for inflation. Whichever type you select, your money is ensured to grow and remain safe into the future. Both these types provide special tax benefit when redeemed for education expenses.

Buying a U.S. Savings Bond is easy – you can purchase it from commercial banks, your credit union, financial institution, Payroll Savings Plan (provided by your employer), or the Treasury Department's Easy Saver Plan, or through internet. You can purchase U.S. Savings Bonds if you are a native of United States; or a legal citizen of the United States living abroad; or a civilian employee of the United States; and must possess a legitimate social security number.

Let us see the advantages of U.S. Savings Bonds in detail.

When compared with other forms of saving, U.S. Savings Bonds provide the most competitive rates available today. The interest on Savings Bonds grows each month and compounds semiannually. U.S. Savings Bonds are registered and backed by the full faith and credit of the United States. The Treasury ensures to replace your bond if mutilated, lost, or stolen.

With U.S. Savings Bonds you can start you savings from $25 to $30,000. Savings Bonds are also easily redeemable – you can collect your money back if any emergency occurs. The interest you receive on your Savings Bonds is exempt from all state and local income taxes. Federal income taxes are deferred until you redeem the savings bonds or you reach their final maturity, which ever comes first. If you are using your Savings Bonds to pay for qualified higher education expenses then you will be allowed to exclude from income taxes as well.

According to financial experts buying U.S. Savings Bonds are considered as a much better way to save your money. As these types of available for everyone who possess a valid social security number, you can easily purchase it. There are large numbers of people who buy U.S. Savings Bonds in the names of their children. This is a better idea as you can redeem your Savings Bonds at the time of your child’s higher education or wedding. Whatever be your reason for investment, purchasing a U.S. Savings Bond is a wise decision.

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.

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