Putting your money to work for you means getting the best return on investments as possible. Unfortunately the best rates also bring the highest risk. If you aren’t in a position to handle a loss of your capital or if you just prefer to play things safe, savings bonds can offer a decent return with next to zero risk.
Bonds almost always outperform other savings rates such as savings accounts and money market accounts. With an average interest rate of 5%, bonds pay nearly double the interest rate of the average savings account. Purchasing these bonds is easy and offer many advantages to investors.
Where to Buy Series EE Bonds?
All government bonds, including Series EE, can be purchased at most banks and other institutions such as brokerage houses. These days, many employers, especially various levels of government, offer easy payroll deductions to purchase bonds. This is a good technique in that you never see the money and thus don’t miss it. Soon, you’ll have a sizable investment.
The U.S. Government offers bonds for direct sale through Treasury Direct, their online bond merchant. Treasury Direct allows buyers to manage their bond holdings online and even sell them electronically from one’s account.
Value of Series EE Bonds
Series EE bonds come in a variety of redemption or “face” values. The most popular are $50, $75, $100, $200, $500, $1,000, $5,000, or $10,000. An individual may purchase up to $30,000 worth of EE bonds each calendar year.
EE bonds pay one of the highest interest rates of any government bond, almost always staying ahead of inflation. A weak economy rarely affects these bonds due to the perceived strength of the US Government. The best time to purchase any bond is when they are paying the highest interest rates. One of the advantages of bonds is that the interest rates are fixed and guaranteed.
This article was written by Gordon Kincait of Ratelines.com. Gordon is a junior financial planner and enjoys following and predicting trends. Ratelines has been a reliable source of information since 2004, check out the site for infomation regarding certificates of deposits and current insurance quotes.