A complete overview of EE Series Bonds

(c) Copyright 2006 by Harold Pennington

Here's a really simple way to invest your "rainy day" or "cookie jar" stash into something that you can be proud of. EE Series Savings Bonds are the best of all possible investments for safety, convenience and achieving a competitive return, especially for beginning investors.

So why are EE Series bonds such a great investment? It has to do with their rare mix of qualities & features.

First of all, EE Series Savings Bonds are notoriously reliable, being backed by the federal government. The US Treasury guarantees that new issues of Series EE Bonds will double in value by 20 years from the issue date. Unless you're worried about a threat of our democracy failing, your money is more safe invested here than anywhere else.

Also, since it's basically a loan you're making to Uncle Sam, there's no market fluctuation on the interest rate. If you buy one for 8.5% today, upon maturity, you get 8.5% interest back, period. You can bank on it. (And many do.)

This all makes them ideal candidates for use towards financing your child's education, supplemental retirement income for yourself, birthday and graduation gifts, and other future events where you'll need some extra cash.

However, the most convenient feature of a Series EE Savings bond is the Treasury's web reporting interface.

I am not aware of any other government-backed security, or for that matter any other securities at all that will allow you to log onto a website and see the exact value of your investment that day.

It's a great way for a child to learn about the value of their investment dollar. You may have to discourage them the first week to not spend so much time staring at the screen though, but over time they'll gain an appreciation for, well, appreciation!

Even if you are using EE Series bonds for your own retirement plans, surely you're aware that life is quirky at best and you may need to cash out with very little notice... This is therefore the only choice for checking on your balance when you need to make those snap decisions.

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