What is Saving Bonds?

hi

hello everyone

Now that I’m older and hopefully wiser, I’m learning that government savings bonds are worth at least slightly more respect and consideration thats it.

The past, savings bonds were paper documents with serial numbers that you could buy at a bank or via the mail.

we have to buy them online. But that’s a good thing, because before you could only buy paper savings bonds in predetermined values.

Now, you can do it in penny increments.

There are two types of savings bonds.

These are also sold at face

what are savings bonds

savings bonds are inflation-indexed meaning they offer a fixed rate of interest

When you redeem the bond, you get back the face value plus all accumulated interest.

You must hold the bonds for at least one year and they will pay interest for up to 30 years.

If you redeem them in less than five years, you’ll forfeit interest payments for the three most recent months.

Why buy savings bonds?

Savings bonds provide savers with a number of benefits including

that you’re not only investing in stocks and bonds

knowing you’re making a safe invest me

However, there are also some cons

Unlike money in a savings account

you can’t redeem savings bonds

the least five years without sacrificing some of the interest.

if you redeem the bond.

that you could need on a moment’s notice.

you want to invest a lump some for a longer time period

I don’t want the risk that comes with the stock market,

savings bonds are a viable alternative.