savings bond

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Related to U.S. Savings Bonds: Series E Savings Bonds, E Bonds

Savings bond

A government bond issued in face value denominations from $50 to $10,000, with local and state tax-free interest and semiannually adjusted interest rates.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Savings Bond

In the United States, a non-tradable bond issued by the federal government for savings purposes. A savings bond allows citizens to receive a guaranteed return for their investments and helps raise revenue for the government. There are two types of savings bond in the United States: Series EE and Series I, with the main difference being that Series I bonds have interest rates indexed to inflation. Savings bonds pay coupons semi-annually; they are sold at face value and pay par upon maturity, which is 30 years after purchase. Bonds not held for at least five years are subject to a redemption penalty. Federal taxes on interest are deferred until redemption or maturity. Savings bonds are non-transferable and must be either held or redeemed.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

savings bond

A nonmarketable security issued by the U.S. Treasury in relatively small denominations for individual investors. Three categories of bonds are available. Interest on these bonds is exempt from state and local, but not federal, taxation. Also called United States savings bond. See also Series EE savings bond, Series HH savings bond, Series I savings bond.
Do U.S. savings bonds have a place in a portfolio?

Probably not, at least for most serious investors. Higher yields are available in various other government obligations that also offer marketability with no penalties if you want your money. TIP: For a beginning investor or for individuals of modest means, U.S. savings bonds are often a better investment than certificates of deposit, because taxes are not due until the bonds are redeemed.

Thomas J. McAllister, CFP, McAllister Financial Planning, Carmel, IN
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
The first-place teams from each division in each of the four regional competitions compete for the national championship in New York City on May 22-24, 2004, with the winning students and their teachers receiving prizes of U.S. Savings Bonds.
Students Sarah Friedberg, Emily Rosch, Carrie Schedler and Kathryn Scurci, of Bexley Middle School in Ohio, scored $36,000 in U.S. savings bonds for their idea to compost roadkill into fertilizer, an environmentally friendly alternative to the typical practice of burying or burning animal carcasses.
Another way to invest money is with U.S. Savings Bonds that can be bought at a discount for denominations starting at $25.
While these projects were forecast to have good rates of return, in retrospect the industry did not employ capital effectively--many projects did not achieve returns equal to those of U.S. savings bonds (see Fig.
They began rewarding field crews for safety with U.S. Savings Bonds. The system works like this: For every quarter without a jobsite injury, field personnel are given a $25, $50, or $100 bond.
U.S. Savings Bonds coordinators and canvassers from the Office of the Secretary of Defense (OSD) kicked off a savings bond campaign during a recent ceremony at the Pentagon.
U.S. Savings Bonds are useful for long-range plans like college.
The contest awards U.S. Savings Bonds to grand and first-prize winners in each of three categories (grades 4-6, 7-9 and 10-12).
The approach would allow American Citizens to buy fully-protected, government-backed bonds in the names of children, as well as for themselves -- in the same manner as U.S. savings bonds, according to Ric Katz, president of Pinnacle Marketing & Resources, Inc., a Manhattan-based real estate marketing firm, who conceived the idea.
The Treasury-related transactions are large: For example, the Federal Reserve Banks on average process about $476 billion per business day in privately owned, marketable Treasury securities transactions and handle $16 billion per year in sales and redemptions of U.S. savings bonds; and per average business day, they process about $6 billion in tax, fee, and loan receipts and about 4 million disbursements by check and wire.
Taxable income from certain U.S. Savings Bonds can be permanently excluded from income if the bond proceeds are used to pay fees and tuition, provided the following requirements are met:
The generous prizes awarded to each of the young hunters included $3,000 in U.S. Savings Bonds, an engraved Model 39a lever-action rifle and a persoalized wall plaque.