US Savings Bonds

Posts Tagged ‘savings bonds purchase limits’

Question: Are US Savings Bonds still safe to purchase?

I know it might sound silly, but…
Back in the day my grandma always got us one for each holiday, birthday and so on. When I cashed mine in at 27 I was able to put the down on my first house. I just do not know if they are as safe as they used to be in this economy . I want to start this same tradition with my little ones, but I am a little hesitant. Any thoughts?

Answer: Very much so. The safest investment/purchase you can make. They are backed by the full faith and credit of the government.

Personal Finance : How to Purchase a Health Savings Account

Question: can someone tell me about saving bonds?

i was just reading about all these successful people and in everyone of their biographies it says that they purchased a government savings bond. How do they work? How long do you keep them for? is there and age limit on how old to buy? any info helps! also i was reading about carlos slim and he was worth 40 mil. at like 20! do you have any ideas on what pushed him to invest so much money?

Answer: They did not become millionaires by investing in Savings Bonds; they made their fortunes from high risk, high reward bets with positive expected values. Instead, after they had already made their billions, they no longer needed to take high risks, because they had already become too wealthy, and thus chose to invest their money in conservative debt vehicles to preserve their vast fortunes. Savings Bonds are just one example of a conservative investment they used.

There are two main types of Savings Bonds offered by the US Treasury. The I bond and the EE bond. In each case you are agreeing to loan Uncle Sam a set amount of money to be paid back after a set amount of time has passed, in exchange for interest.

The Series EE Savings Bonds pay interest equal to 90% of the average 5-year Treasury note yield for the preceding six months; the rates on EE bonds are based purely on prevailing market rates. The Series I Bond, on the other hand, carries a fixed base rate plus a semi-annual calculation based on the rate of inflation based on the CPI.