US Savings Bonds

Archive for September, 2005

Question: savings bond question?

I dont understand the concept of a savings bond. I was given $100 to buy a bond for my daughter. I know I could either get one in the bank or online directly from the US Treasury. But how much could this bond be worth in 17 years? Would it be substantial? I did the calculator feature on the website and it said at a 2% interest it would increase $46 in 10 years. Is that it? I thought it would be more. Also what is the difference between type 1 and type ee? Thanks in advance!

Answer: Savings Bonds are good and bad.

They are a neat way to get people to save. E-Bonds are for education.

However, they are at a set interest rate of gains and they only gain for a set period of time.

If your daughter is going to be 18 and going to college in 17 years, then you may want to keep it to pay tuition.

If you are going to keep them longer… cash them out after a couple years and invest the money into a long term Mutual Fund or other Growth fund you feel confident in.

Never mind the “Face Value” of these bonds… they cost only $50 at the time of purchase and only gain value over time… very little over a long time.

Good Questions, I hope this helps.

Good Luck!

US Savings Bonds ad with Rube Goldberg device

Using a Payroll Savings Plan to buy US Savings Bonds

Millions of Americans buy Us Savings Bonds Through Payroll Deduction system. If you want to buy U.S. saving bonds this way, you may want to check with the Human Resources department, Personnel, or Payroll department of your company to see if your company offers the payroll savings plan with US Saving Bonds. If your company is a participating company, then they will have the necessary forms for you to buy the U.S. saving bonds. 

What if my company does not offer the payroll deduction?

If your company does not offer the payroll deduction program to buy US Saving Bonds but would like to, there are a few options how your company can offer the payroll deduction program for employees to buy US Savings Bonds. The company may arrange to have the U.S. saving bonds printed through a Federal Reserves Bank regional processing site or another qualified issuing agent. Or, the company may avail itself of US savings bond related financial services offered by a third party, such as National Bond & Trust Co. which is a private company. 

Who can buy US Savings Bonds?

The following people can buy US Savings Bonds: 

• Residents of the United States can buy US Saving Bonds. Residents of United States territories and possessions can also buy US Savings Bonds. Residents of the Commonwealth of Puerto Rico can buy Savings Bonds as well.

Question: Why is the U.S.A. borrowing money from the Chinese, Japanese, and. . .?

Fact; we are currently borrowing billions of dollars from, mostly, the Chineese goverment at some where in the neighborhood of 10% interest.
Why are we not issueing “U.S. Savings Bonds” at 5 or 6% instead? Yes you can currently buy “Savings Bonds” but the rate is ridicoulously low in comparison.
I don’t know about anyone else but “pimples on our butt” like Iran, Syria, and North Korea don’t really scare me (not to say we shouldn’t “sqeeze” them to get out the infection) but the greedy Chineese manipulating their currency to rip us off even more and then turn around and use it to build their military (nuclear program) and set up programs to corner all the all the fossil fuels, shouldn’t everyone be a litle more focused on them? Their goverment has said ,with-in the last 10 years, “” that America needs to be over throwned!
What you think?

Answer: I think you are my new Lord, I’m gonna start following you around and preach about your teachings so others can learn the power of your gospel. Amen

ROWAN AND MARTIN SAY BUY US Savings Bonds