Nowadays, people are looking at ways to invest their money wisely. A simple investment today will reap its fruits in the future. Aside from real estate, savings bonds can also be a good potential for a long term investment.
Savings bonds are easy to purchase and are considered as secured investments because you are loaning your money to the federal government. Most of the time, people acquire these bonds for personal reasons but it can also be given as a present for children, for college educational funds and simply as a part of your network of investments that could eventually help you secure your retirement in the future.
Some of the benefits of purchasing savings bonds are:
- These bonds have convenient and varying options that may fit your investment plans.
- Series I and EE are available (I or II series, etc.).
- Bonds are safe investments (less worries).
- Bonds can serve as a present to your children and a good source of income for their future needs.
- Interest may be earned for over thirty years.
- Most of the time, bonds can be redeemed after twelve months from the date of issuance.
There are various types of bonds that you can purchase: municipal bonds, premium bonds, government bonds and treasury bonds. Be careful not to confuse them with bail bonds, which are used for criminal offenses. A municipal bond is a specific type of government bond where it is issued by a city or a state. They can either be taxable or non-taxable. The tax deductions will depend on the state where you purchased one. An important thing to consider when buying these bonds is its interest rate. These types of bonds usually have long term effect on your income. You may consult a professional before making an investment.
Where can you purchase savings bonds? There are many ways in which you can have one yourself. You may go to a bank near you and get one. You can buy one in a credit union or a commercial bank. You may also get a savings bond direct from your own paycheck. Consult your employer's human resource department or payroll section for more details.
These days, the federal government has made this service even more convenient and accessible to the public majority. You may also purchase savings bonds online by checking out the treasury's Web site, treasurydirect.gov. It will only take you around ten to twenty minutes. All you have to do is make your own account online on their site, set up direct deposit self service action and then purchase bonds on the Net.
Be sure to keep track of the maturity and growth of your savings bond. You may use a bond calculator to help you manage your bonds and help you choose the best savings plan. When the time comes that you want to redeem your investment, you may cash in your money at any Federal Reserve Bank or you may also do it online.
Savings bonds are good investments that you may want to get involved in. Handle your money wisely and begin to invest in your future now!