Summary of US Savings Bonds
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Summary of US Savings Bonds
There can be many advantages to Old Aunt Agatha’s practice of giving all of her nieces and nephews savings bonds each year. Besides offering several tax advantages, savings bonds can provide a reasonable, inflation-indexed return and a steady investment vehicle for the long term—not to mention the safety and backing of a US government-issued security.
US savings bonds have gone without due recognition as a savings and investment vehicle. Yet they have some distinct advantages. They can provide a way to accumulate funds that will mature on a given date. They provide income tax advantages when used correctly in savings for education. And they can provide a very fine emergency fund.
As any other investment vehicle, they have a place in a portfolio. Review your investment goals and objectives to see whether US savings bonds might fill a certain niche.
What you have learned
- What Are Savings Bonds?
- What Types of US Savings Bonds Are Available?
- How Much Money Do Savings Bonds Earn?
- How Do You Redeem Savings Bonds?
- What Taxes Apply to Earnings from Savings Bonds?
- Where Can You Buy Savings Bonds?
