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Savings Bonds a Safe, Competitive Way to Save
Stick your money in a conventional bank account and you’ll be lucky to earn 3 percent interest. Certificates of deposit — CDs — barely yield 5 percent at most banks, and require a hefty investment. The stock market may treat you better, but it’s risky business.
So how do you get the most bang for your buck on an investment of just $50 or $100? Consider U.S. Savings Bonds, presently earning up to 7.49 percent interest.
“Our economy is strong but our personal savings rate is low,” CWA President Morton Bahr said, speaking in support of an annual government campaign to promote bond sales. “Savings Bonds are a safe, easy way to save money, earn competitive interest.”
The present annual yield for Series I bonds is 7.49 percent. The bonds are sold at face value and earn a fixed interest rate — currently 3.6 percent — plus inflation every six months.
Traditional bonds, Series EE, are presently earning 5.73 percent interest. The EE is sold at half its face value and earns interest at 90 percent of the average return on five-year Treasury securities.
Both types of bonds come in denominations ranging from $50 to $10,000. They are exempt from state and local income tax, and federal tax can be deferred until the bonds are cashed or reach maturity. Unlike some long-term savings plans, U.S. Savings Bonds can be redeemed at any time, and for any reason, after six months.
As part of its annual campaign to promote the purchase of bonds, the U.S. Savings Bonds Program also wants to alert people that they may have mature bonds and not realize it. More than $7 billion worth of Savings Bonds are outstanding today and not earning interest.
Savings Bonds earn interest for 20 to 40 years, depending on the type of bond. Officials urge people holding old bonds to redeem them as soon as possible.
To learn more about Savings Bonds, check the program’s web site at www.savingsbonds.gov.
So how do you get the most bang for your buck on an investment of just $50 or $100? Consider U.S. Savings Bonds, presently earning up to 7.49 percent interest.
“Our economy is strong but our personal savings rate is low,” CWA President Morton Bahr said, speaking in support of an annual government campaign to promote bond sales. “Savings Bonds are a safe, easy way to save money, earn competitive interest.”
The present annual yield for Series I bonds is 7.49 percent. The bonds are sold at face value and earn a fixed interest rate — currently 3.6 percent — plus inflation every six months.
Traditional bonds, Series EE, are presently earning 5.73 percent interest. The EE is sold at half its face value and earns interest at 90 percent of the average return on five-year Treasury securities.
Both types of bonds come in denominations ranging from $50 to $10,000. They are exempt from state and local income tax, and federal tax can be deferred until the bonds are cashed or reach maturity. Unlike some long-term savings plans, U.S. Savings Bonds can be redeemed at any time, and for any reason, after six months.
As part of its annual campaign to promote the purchase of bonds, the U.S. Savings Bonds Program also wants to alert people that they may have mature bonds and not realize it. More than $7 billion worth of Savings Bonds are outstanding today and not earning interest.
Savings Bonds earn interest for 20 to 40 years, depending on the type of bond. Officials urge people holding old bonds to redeem them as soon as possible.
To learn more about Savings Bonds, check the program’s web site at www.savingsbonds.gov.