When the stock market is bad, more people seek refuge in safe investments such as in the excellent series EE bonds. Series EE bonds are US savings bonds that are considered default-risk free. They are low risk savings that pay interest for up to 30 years.
Like most bonds, series EE bonds pay interests. However, the interest rate of series EE bonds are very low compared to other fixed income investments. An example of what the interest rate on series EE bonds is 1.4% fixed rate paid in 2008. Fixed interest rates apply for series EE bonds purchased in May 2005 and after. Before that, series EE bonds paid interests based on current market rates.
Buying series EE bonds is easy. The US Treasury Department has made it possible to buy them online through a governmental website. However, you can still buy series EE bonds at your local financial institutions or banks. Many employers also offer the option of buying series EE bonds through payroll deduction programs.
Nowadays, many people take advantage of the availability of US savings series EE bonds online. When investing in series EE bonds, you can choose between electronic series EE bonds or paper series EE bonds. Paper series EE bonds start at $50 denomination whereas the smallest denomination of electronic series EE bonds is $25.
Some people are confused how much they are paying for series EE bonds. Paper series EE bonds are sold at discount, half price to be exact. Electronic series EE bonds, however, are sold at face value. That means, to buy a $50 series EE bond, you pay $50 if you buy online or pay only $25 if you buy paper series EE bonds.
Bonds are often long term investments. Series EE bonds must be held for at least a year before cashing out. The interest on series EE bonds accumulate for 30 years. The longer you hold series EE bonds, the more interests and value at redemption.
If you redeem series EE bonds early, there is a penalty. Most people hold series EE bonds for at least five years because if you redeem series EE bonds before 5 years then you will not receive the latest three interest payments. If you wait until the five year holding period is up, you will not incur penalties when redeeming series EE bonds.
Since series EE bonds are guaranteed by the US government, they are considered one of the safest investments around. People buy series EE bonds for many reasons, not just for investments but also for education funding as well as retirement funding. Best of all, Series EE bonds come in many different denominations and are extremely flexible for your budget. - 15224
Like most bonds, series EE bonds pay interests. However, the interest rate of series EE bonds are very low compared to other fixed income investments. An example of what the interest rate on series EE bonds is 1.4% fixed rate paid in 2008. Fixed interest rates apply for series EE bonds purchased in May 2005 and after. Before that, series EE bonds paid interests based on current market rates.
Buying series EE bonds is easy. The US Treasury Department has made it possible to buy them online through a governmental website. However, you can still buy series EE bonds at your local financial institutions or banks. Many employers also offer the option of buying series EE bonds through payroll deduction programs.
Nowadays, many people take advantage of the availability of US savings series EE bonds online. When investing in series EE bonds, you can choose between electronic series EE bonds or paper series EE bonds. Paper series EE bonds start at $50 denomination whereas the smallest denomination of electronic series EE bonds is $25.
Some people are confused how much they are paying for series EE bonds. Paper series EE bonds are sold at discount, half price to be exact. Electronic series EE bonds, however, are sold at face value. That means, to buy a $50 series EE bond, you pay $50 if you buy online or pay only $25 if you buy paper series EE bonds.
Bonds are often long term investments. Series EE bonds must be held for at least a year before cashing out. The interest on series EE bonds accumulate for 30 years. The longer you hold series EE bonds, the more interests and value at redemption.
If you redeem series EE bonds early, there is a penalty. Most people hold series EE bonds for at least five years because if you redeem series EE bonds before 5 years then you will not receive the latest three interest payments. If you wait until the five year holding period is up, you will not incur penalties when redeeming series EE bonds.
Since series EE bonds are guaranteed by the US government, they are considered one of the safest investments around. People buy series EE bonds for many reasons, not just for investments but also for education funding as well as retirement funding. Best of all, Series EE bonds come in many different denominations and are extremely flexible for your budget. - 15224
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Curious enough to learn even more about Savings Bonds issued by the USA, or specifically the Series EE Bonds? Visit us at the US Savings Bonds information website today for even more information and resources.
