Why Buying Bonds Can Increase Savings Rates

Putting your money to work for you method 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 manager 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 edges and other institutions such as brokerage houses. These days, many employers, especially various levels of government, offer easy payroll deductions to buy bonds. This is a good technique in that you never see the money and consequently don’t miss it. Soon, you’ll have a sizable investment.

The U.S. Government offers bonds for direct sale by Treasury Direct, their online bond merchant. Treasury Direct allows buyers to manage their bond holdings online and already sell them electronically from one’s account.

Value of Series EE Bonds

Series EE bonds come in a variety of redemption or “confront” values. The most popular are $50, $75, $100, $200, $500, $1,000, $5,000, or $10,000. An individual may buy up to $30,000 worth of EE bonds each calendar year.

Benefits

EE bonds pay one of the highest interest rates of any government bond, almost always staying ahead of inflation. A ineffective economy rarely affects these bonds due to the perceived strength of the US Government. The best time to buy 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.

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