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1.
A friend mentions that his savings bonds are based on the rate of Treasury securities. Your friend owns _______.
Series EE bonds. Series EE bonds pay 90 percent of the six-month average yield on five-year Treasury securities.
2.
If you redeem a Series EE savings bond that you have held for less than five years, _______.
You will be penalized with the loss of three months' interest. This is the current penalty.
3.
The tax advantages of Series EE and Series I bonds include all of the following except _______.
No federal tax on earnings. Unless the bonds are owned by your child or special exclusions for educational expenses apply, you must pay federal taxes on the earnings of your Series EE and Series I bonds. You do not need to pay state or local taxes, however.
4.
One advantage of savings bonds is _______.
The small minimum purchase required. You can buy savings bonds in amounts as low as $25.
5.
Savings bonds are accessible to many people, since they are available online and are affordable, having a low minimum purchase price and _______.
No seller's commissions. There are no fees or commissions added to the purchase prices of savings bonds.
6.
Series EE bonds, series HH bonds, and series I bonds all offer _______.
A relatively safe investment. Savings bonds are backed by the US government and can provide a relatively safe instrument that helps provide stability to your investment portfolio.
