With deposit accounts and deposit certificates paying the lowest interest rate over the last few years; is it time to consider investing in US Savings Bonds?
Depending on your age, you can recall years ago when employers deducted only the amount of money they could afford to pay for a bond. You can also go to your local bank or branch and mortgage and buy bonds.
Today it is very different, purchases are made directly from US Treasure whether online or post. The purchase price has changed from $ 15,000 on the taxable number to $ 5,000 today.
However, you can buy all the online bills (electronic vouchers) and the old voucher for an annual fee of $ 10,000. Since the annual income depends on the number of social security, couples can afford to buy $ 10,000 each year.
Advantages of US Sinding Bonds:
- Taxes are delayed, you only pay tax on the payment when you redeem the bonds.
- For smaller religions, you can purchase $ 25 or more.
- Interest rates are better than most savings accounts or cash on the stock market.
- Free taxes on certain conditions depending on the family income and if you use the education.
- Exemption from state and local taxes.
Currently there are two types of bond you can keep, namely (I) bond or EE. Forget the EE bond as it stands for 30 years, at lower prices today it is not worth the small amount of money. However (I) changes its interest rate every six months and will continue to receive interest for up to 30 years.
Keep in mind that all bonds that have been bought recently or in the past will stop earning interest after 30 years. Therefore, if you have an account for the past 30 years, you must redeem it and reinstate it or the agreement.
Redemption of Bonds:
You must have a bond for 12 months and if you can redeem it five years before you receive the final interest payment.
Over the past five years (I) bonds have had a better interest rate than many other liquid assets including savings accounts, CDs and mutual funds. The current six-month yield is 4.60% from September, 2011. The contract is also changed twice a year to May and November. Six-month yields are calculated based on the period of the return period and the annual rise in prices.
In summary if you are not happy with what your bank or market fund offers, consider the US Savings Bond as an alternative.