U.S. savings bonds – how to buy or redeem them?

Do you know how to buy or redeem the U.S. savings bonds? U.S. Savings Bonds have long been a popular investment choice and today we will understand more about it.

They usually offer a secure and low risk way for people to start saving money by investments.

Let’s understand more about this subject:

What are the U.S. saving bonds?

The U.S. Savings Bonds are a type of debt securities issued by the U.S. Department of the Treasury that helps fund the government’s borrowing needs. 

Basically they are a type of loan that you can make to the government and in exchange you will receive back a guaranteed return on this investment.

This type of investment is considered very popular because it’s one of the safests options, since it is guaranteed by the government, backed by the full faith and credit of the country.

The principal purpose of U.S. Savings Bonds is to provide individuals with a secure and accessible way to save money while contributing to the nation’s borrowing needs.

Types of U.S. Saving Bonds

And when we talk about the U.S. Savings Bonds we can divide them in two categories available to purchases, the Series EE Bonds or the Series I Bonds.

The series EE bonds have a fixed rate of interest and the initial term is usually of 20 years, but it’s possible to reach 30 years. In these types the interest will add monthly and be paid when the bond is redeemed.

And the series I Bonds have a variety of interest rates that combine a fixed rate and an inflation rate. The term is similar to the Series EE, at the beginning it’s of 20 years but can be held up to 30 years.

Also in this type of saving bond the interest will also be added monthly and paid when redeemed.

Benefits of U.S. Saving Bonds

Now that you already know what the U.S. Savings Bonds are, you still need to comprehend what benefits you can have from this type of investment.

Starting with simplicity to gain your money, when you buy a savings bond you will earn interest for 20 or even 30 years. This flexibility allows bondholders to choose the optimal time for redemption based on financial goals.

It’s also a very safe and secure option of investment, probably one of the most low risk at the market. These bonds are backed by the United States government and you have the guarantee that you will receive your investment back.

U.S. Savings Bonds are easily accessible to individual investors. They can be purchased online through the TreasuryDirect website, making the investment process straightforward.

It’s very accessible and affordable, it costs $25 dollars only, it’s suitable for people with all types of incomes.

There are no fees or commissions associated with purchasing U.S. Savings Bonds, allowing investors to allocate the full amount of their investment to the bond.

Saving bonds are often purchased as a part of strategy to savings or to make an emergency fund or to your future goals.

U.S. Savings Bonds how to buy or redeem?

If you want to know more about the U.S. savings bonds, how to buy or redeem them, it’s very easy. It can be bought online on the Treasury Direct site of the United States government.

They sell the two types of saving bonds that exist, and it can be bought for yourself, others and even as a gift.

Also on the Treasurydirect.gov website, you can find the current rates of the Series EE Savings Bonds and the Series I Saving Bonds.

They can be bought in different forms, starting with the electronic one, where most of the process is done online and the price starts at $25 dollars, or through the Payroll Savings Plan to employees.

You can also buy paper Series I saving bonds on their website using your IRS tax refund, the price of this one starts at $50 dollars and can go up to $5.000.

And if you want to redeem your savings bonds the process is also very easy and it happens on the Treasury Direct website as well.

You will need to access the managed bonds area of the website and with a few clicks the money from the funds will be paid.

Enter your Manage Direct area, and in the “Redemption” option you can summarize your securities and start the process to redeem them.

Choosing the one you want to redeem you can pick if you want the full amount or the partial amount of the money, and select where the payment is going.

Confirm your request on the website and submit your application with the amount you will receive from the redeem.

Daniel 18 de March de 2024