US Treasury Savings Bonds from A to Z

We're going to take an in-depth look at US Treasury Savings Bonds .... what exactly they are, how to go about buying them, how to calculate their value, etc.?

What exactly are US Treasury Savings Bonds?

US Savings Bonds are issued by the US Treasury. However, unlike other securities issued by the Treasury, Savings Bonds are non-marketable ... they can't be traded in the secondary market by brokers and dealers. Once you buy it, it stays with you till you redeem it.

Another key difference is that even kids can own US Savings Bonds. It's a very popular financial gift that seniors give their grand kids.

Types of US Savings Bonds

Currently, there are two types of US Savings Bonds available for purchase:

• Series EE bonds — they come with a fixed interest rate, earn interest every month for up to 30 years, and are guaranteed to at least double in value in 20 years.

• Series I bonds — they come with an interest rate that is made up of two components... a fixed interest rate when you buy the bond and another variable interest rate connected to inflation. They earn interest for up to 30 years.

There is a third type of US Savings Bonds that can be redeemed if owned, but is no longer sold — HH Bonds.

How do you buy US Savings Bonds?

Let's take a look at how to go about buying US Savings Bonds....

How do you calculate the value of US Savings Bonds?

Let's say you want to know the value of the US Savings Bonds you own. Here's how you would go about calculating their value....

How do you go about cashing US savings bonds?

We briefly review the process here. In addition, we also talk about what you would do with lost savings bonds....

In summary, we looked at what US Treasury Savings Bonds are and the different types available. We probed into the process of buying them, calculating their value, and cashing them out.

Overall, we hope this comprehensive guide on US Treasury Saving Bonds gives you better understanding of this specific kind of bond and helps you breeze your way through purchasing it.

Please subscribe to our Free Newsletter for great tips on how to get started and learn to invest by yourself.

Return from US Treasury Savings Bonds page to Independent Stock Investing home page