Savings bonds are an extremely popular way for people to invest their money due to their safe, low-risk nature. Also, if a bond is lost, stolen or destroyed, it can easily be replaced. If a savings bond is used for educational purposes or expenses, it can provide special tax benefits. The bonds must be eligible for the tax benefits, those that qualify are usually EE Savings Bonds.
Many bonds are sold at 50 per cent of the face value, so a $100 bond will cost $50. The EE Savings Bonds are an example of this but other bonds need to be purchased at full face value. They are often sold as $50 bonds but can almost be bought in other denominations including $75, $100, $200, $500, $1,000, $5,000 and $10,000. There is also a purchase limit of $30,000 per person.
There are many different types of savings bonds but Series EE Savings Bonds guarantee to reach the face value within 17 years. The downside to this is that you will not make any money unless it is invested for 17 years. For this reason, savings bonds are extremely popular for the use of college savings funds. Parents will often invest money in savings bonds when their child is born as, as long as enough money is initially invested, the child is ensured to have suitable funds for their college education. This is why many of the special tax benefits are available when the funds are invested in education. A savings bond could be used for your own education or the education of your child, grandchild or dependent.
Other savings bonds can be bought through a payroll savings plan which many employers participate in. If your employer does not participate in such a scheme, you can purchase them directly through your checking or savings account at your bank.
Many bonds are sold at 50 per cent of the face value, so a $100 bond will cost $50. The EE Savings Bonds are an example of this but other bonds need to be purchased at full face value. They are often sold as $50 bonds but can almost be bought in other denominations including $75, $100, $200, $500, $1,000, $5,000 and $10,000. There is also a purchase limit of $30,000 per person.
There are many different types of savings bonds but Series EE Savings Bonds guarantee to reach the face value within 17 years. The downside to this is that you will not make any money unless it is invested for 17 years. For this reason, savings bonds are extremely popular for the use of college savings funds. Parents will often invest money in savings bonds when their child is born as, as long as enough money is initially invested, the child is ensured to have suitable funds for their college education. This is why many of the special tax benefits are available when the funds are invested in education. A savings bond could be used for your own education or the education of your child, grandchild or dependent.
Other savings bonds can be bought through a payroll savings plan which many employers participate in. If your employer does not participate in such a scheme, you can purchase them directly through your checking or savings account at your bank.
