US Savings Bonds
25 Apr
If you are looking into buying savings bonds, the first step to to know that there are two types. There is the EE bonds and the I bonds and are both a safe way to invest your hard earned money for a guaranteed return that is government backed. The best benefit that these bonds offer is that they are exempt from local and state taxes.
The I bonds are sometimes called Inflation Indexed bonds and their return is guaranteed to be higher than that of inflation. You can buy these bonds in both paper or electronically. Both of these bonds are sold at face value and carry a limit of $5,000 each year. This bond has a penalty if you redeem it within the first five years and so this penalty can be avoided if you wait till it is more than five years old before cashing it in.
The series EE bonds can also be purchased either as paper or electronically and these bonds have their annual limit also is the same as the I bonds, $5,000. Paper I bonds are sold at half their face value and within twenty years are guaranteed to reach their face value.