Can someone explain how savings bonds work?
These are useful and collceted by Anne!
Q&A: Can someone explain how savings bonds work?
I am wanting to invest in some savings bonds but I would like to understand how they work. Does anyone know?
The following is the answer:
Answer by SusieQ
Assuming you are talking about US Savings Bonds, you can buy them directly from the government or at any bank. You decide how much you want to invest and then buy a “discounted” bond. This means that you pay less for the bond than its face value – the difference is the interest earned and you get it when the bond matures.
Answer by Marco
Go to treasurydirect dot gov. You can find out everything you need to know, plus purchase bonds online.
Answer by bud68
http://www.savingsbonds.gov
Answer by Al in NC
http://www.investopedia.com/articles/02/121302.asp
http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eecomparison.htm
Answer by The Bond Guru
Your question is rather complicated but I’ll try to give you the very short version.
A Savings Bond is an investment tool. Essentially its a loan to the US Government. You lend them some money, and they give you a bond and tell you they’ll give you more money back in return over a certain amount of time.
An example would be that you give the government , and in turn they give you a Series I Savings Bond with a face value of . That I Savings Bond will earn interest at a variable rate every month. You can cash it in any time after it is 1 year old. It will earn interest for up to 30 years.
For more information you should go to our website about us savings bonds: http://www.savingsbonds.com
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