savings bond


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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.

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.

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
References in periodicals archive ?
The reason is that paper savings bonds are no longer available at the local bank.
Savings bonds can be purchased for as little as $50 up to $5,000, and the buyer is not required to hold a bank account.
savings bonds. Unlike with most other taxable bonds, cash-basis taxpayers can defer interest income from U.S.
savings bonds. This year, purchase options for savings bonds are scheduled to expand to include titling the bonds in the name of a taxpayer and a co-owner, such as a child or a grandchild.
No savings bond issue or any other Treasury security issue has ever
The fixed rate of return, applicable at the time a Series I savings bond is issued, will apply to the bond throughout its 30-year life.
The goal of reducing the tax bite on their savings bond interest income has been realized by making these clients more tax-efficient!
As an alternative to the previous savings bond strategy, an investor concerned with generating steady income during retirement can purchase an immediate fixed annuity to provide monthly income once retired.
The Government would contribute through the Canada Disability Savings Bond, which provides up to $1,000 per year to RDSPs, up to a maximum lifetime limit of $20,000.
Savings Bond, a handheld electronic sudoku puzzle, and a Mapman T-shirt.
Savings Bond from Metro Homes, LLC as the winner of an unusual contest to rename a luxury condominium building Metro will build in the City's Oceanfront Asbury Redevelopment District.

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