Title:

Title:
Savings Bonds

Word Count:
612

Summary:
Savings bonds are a great way to save money for your future. Either purchased yourself, or given as a gift, savings bonds ensure you that you will have at least some amount of savings later on.

Although you may already know a little about savings bonds, either owning them yourself or having given one as a gift, you may not know that there are different types. Each type has its own set of rules and also different ways that they can be used.

I Bonds are saving bonds that …

Keywords:
finance,savings,bonds

Article Body:
Savings bonds are a great way to save money for your future. Either purchased yourself, or given as a gift, savings bonds ensure you that you will have at least some amount of savings later on.

Although you may already know a little about savings bonds, either owning them yourself or having given one as a gift, you may not know that there are different types. Each type has its own set of rules and also different ways that they can be used.

I Bonds are saving bonds that are low-risk and also a liquid savings product. During the time that you own them they earn interest and also protect you from inflation.

I Bonds can be purchased at just about any local financial institution, or also through payroll deduction.

What are they used for? I Bonds savings bonds can be used to finance education, supplement your retirement income, or also given as a gift.

With I Bonds, you are guaranteed a real rate of return since they are an accrual-type security. Each month interest is added to the savings bond, and that interest is paid to you when you cash in the bond.

They are sold at face value. For instance, you pay $50 for a $50 I Bond.

You must own an I Bond for a minimum of one year, its interest-earning period is 30 years, and there are early redemption penalties. Interest earnings are tax-exempt from both State and local taxes, but they are subject to State and local estate, inheritance, gift, and other excise taxes. Interest earnings are subject to Federal income tax, but they may be excluded from Federal income tax when they are used to finance education.

Another type is the EE savings bonds. They are safe and low-risk savings bonds that pay interest based on market rates. As with I Bonds, EE savings bonds can be purchased at just about any financial institution or, if available, through your employers payroll deduction plan.

EE Bonds can be used to finance education, supplement your retirement income, or even given as a gift.

Any EE/E savings bond that were purchased between May 1997 and April 30, 2005 are set to earn a variable market-based rate of return. Those issued May 2005 and after are set to earn a fixed rate of interest.

EE savings bonds are also an accrual-type security, having interest added monthly and paid when it the bond is cashed in. However, unlike I Bonds, EE savings bonds are sold at half of its face value. For example, a $50 bond is purchased for $25.

There is a minimum of one year ownership, a 30-year interest period, and also early redemption penalties. The Tax Considerations for EE savings bonds are the same as those for the I Bonds.

Lastly are HH savings bonds. Unlike both I and EE savings bonds, HH are used only to supplement retirement income. They are available only in exchange for Series EE/E savings bonds or upon reinvestment of any matured Series H bonds.

As with I Bonds, HH savings bonds are sold for its face value. For example, you pay $500 for a $500 bond. HH/H savings bonds pay a fixed interest rate that was set on the day it was purchased. The interest rate will change to the current HH Bond rate on the 10 th anniversary of its issue date.

You must own HH savings bonds for a minimum of 6 months, and the interest-earning period is 20 years.

Interest earnings for HH savings bonds are exempt from State and local income taxes. However, they are subject to Federal, State, and local estate, inheritance, gift, and other excise taxes. Its interest earnings are also subject to Federal income tax.

How to Protect Yourself While Internet Banking

There is no doubt about the fact that identity theft is on the increase. More and more people are losing their identities and money each year due to the efforts of a select few individuals who know how to use the Internet to their advantage. Does that mean; however, that you shouldnt use online banking at all in order to avoid running the risk?
By knowing how to protect yourself while banking on the Internet you can reduce your risk of identity theft while still taking advantage of the numerous advantages and conveniences.

It is important to understand that financial institutions take every available effort to keep the transactions of their customers safe and secure. After all, they wouldnt be in business for very long if they didnt. Of course, it would seem that crooks and criminals get more and more creative every year in order to circumvent those security efforts. Just a few of the techniques they use include keystroke collection and phishing activities.

Phishing involves the use of trick emails and even some websites to collect personal information from individuals such as bank account numbers, credit card numbers, passwords, etc. With this information, criminals can then steal your money. So, it is incredibly important to be sure that whatever site you enter such information into or whoever you share such information with is secure and legitimate. In some cases phishing emails can look quite legitimate, as if they are indeed coming from your bank. Before responding such an email its a good idea to always contact your financial institution to verify they actually sent the email. If they cant confirm it, dont respond and certainly do not share any sensitive information.

Other techniques you can use to protect yourself while banking online is to use passwords that are extremely secure. The safest passwords should be at least six characters long and include both numbers and letters. Never duplicate passwords and try not to use numbers and letters that would be easy to figure out, such as numbers from important dates like birthdays, anniversaries, etc. or names of your children, pets, etc. Usernames should be likewise secure.

Keystroke collector programs work to collect important information such as passwords and usernames that can then be used by a criminal to hack into your online bank account information. To protect yourself from this threat, it is important to check your computer on a regular basis to make sure you do not have any spyware, such as a keystroke collector, installed on your system. This type of program can be installed on your system without you even knowing it and many people are often surprised to find out the amount of spyware that is on their system without their knowledge. Spyware can be detected and removed with spyware blockers.

Finally, dont forget to store all of your banking information in a very secure location. Never keep the passwords and usernames on your computer itself or even near it for that matter. If you forget your own password or username its a lot easier to change it than to worry about losing your money to a computer hacker.

Do You Bank Online?

If you havent made it to the world of options offered in bank-online fields, the fact is that you should be. Yes, there are many opportunities for you to walk into a teller and get your information taken care of. But when do you pay bills? Do you do it in the middle of the night, usually the night before it is due? If this is the case, you may want to consider the options of bank-online to simply give you the opportunity to make those payments on time. Why should you bank-online?

There are many reasons but most of them have to do with the ease of use. You can find yourself saving time and money by getting your work done on the web. You can bank whenever you like. You can check your balance well before the bank opens. You can actually see it as well, not just hear the information but see who is taking money from your account. It is quite simple to use and that too adds to the ease and convenience of bank-online options.

What is also great about it is that it can help you to set up bill payments on the web as well. This means that you go into your account, tell it the day you need to pay the bill, the amount and who to send it to and it takes care of the rest. If nothing else, it saves you the postage stamp! Likewise, you will find that it also provides you with a way to automatically handle those bills so that you are not late anymore. And, it can help you to track your spending and savings because most of the banks that off bank-online options do so by providing you with a way to connect to your banking software as well. This means organization! See what opportunities you have in bank-online through your financial institution.

American Express Savings Account – How to Earn More Money

American Express Savings Account – How to Earn More Money With American Express Bank

American Express Online Banking has just established the American Express Savings Account. Finding a high interest savings account is not easy today, but this article will teach you how to earn more money with American Express Bank.

Earn a high rate of interest with an American Express Savings Account. How to earn more money with AMEX Bank is easy. The application process is online and with direct and electronic deposits available, you would never have to leave your home to start earning money.

Today’s high yield savings account from Amex is earning 2.00% APY. This is a competitive rate with a financially secure bank of Amex. The sound business plan of this financial institution has made it possible for them not only to be in business for decades but be a leading in their field. This is why your savings will be safe and secure. To add to this security, your savings will be protected by the United States Government through the FDIC program.

The interest that you will earn with this account is compounded daily and credited to your account every month. This savings account also does not have any monthly fees and there is no minimum balance required. On-line transfers with this account are done daily until 5:00 pm eastern time. All request after this time will be done the next business day.

An application to open an account can be done on-line. This will only take a few minutes of your valuable time. All that is required is your name, address, phone number, email address, birth date and social security number. Accounts become active within 2 to 3 days once the electronic deposit is made. If the deposit is by hand written check it will take a little longer.

It is easy to open an American Express Savings Account. How to earn more money with American Express Bank is just a key stroke away.

Find out how to open an American Express savings account. Check out that site for great information about online banking.