{"id":94335,"date":"2023-02-10T10:42:25","date_gmt":"2023-02-10T10:42:25","guid":{"rendered":"https:\/\/businessyield.com\/?p=94335"},"modified":"2023-06-26T23:54:55","modified_gmt":"2023-06-26T23:54:55","slug":"how-much-are-savings-bond-worth","status":"publish","type":"post","link":"https:\/\/businessyield.com\/bs-investment\/how-much-are-savings-bond-worth\/","title":{"rendered":"HOW MUCH ARE SAVINGS BOND WORTH? All You Need To Know","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"

Savings bonds are an uncommon type of long-term investment that can be given as a gift. As a result, recipients of these bonds are more grateful, given that some savings bonds have an annual rate of 6.89% through April 30, 2023.<\/p>

Savings bonds in the US offer security and are protected against inflation, which can make them a particularly attractive option at this time even though their returns are typically lower than those of mutual funds or stocks.<\/p>

So in this article, we will examine what savings bonds are, how much are savings bonds worth, why they are regarded as safe investments, and what distinguishes them from other long-term savings options.<\/p>

What is a Savings Bond? <\/span><\/h2>

A savings bond<\/a> is a loan given to the Treasury of the federal government of the United States. You are lending money to the government when you purchase one. Even if they are under 18, you can register yourself or another person as the owner or co-owner of a savings bond.<\/p>

In exchange for lending money to the United States through bonds, the government promises to reimburse that sum plus additional funds in the future (interest).<\/p>

Savings bonds come in two types: “series EE” and “series I,” and you can purchase them electronically on TreasuryDirect.gov, the website of the U.S. Treasury.<\/p>

Features of Savings Bond<\/span><\/h2>
  1. Paper bonds are no longer available for purchase from banks or brokers, but they can still be redeemed there.<\/li><\/ol>
    1. Savings bonds cannot be held in brokerage accounts or sold to other investors, unlike other types of bonds.<\/li><\/ol>
      1. Only the bond’s owner or beneficiary may cash it.<\/li><\/ol>
        1. Because the U.S. government backs saving bonds, they are incredibly low-risk investments. However, because they are low-risk, they also provide a low return on investment. <\/li><\/ol>
          1. Series EE and Series I savings bonds are two varieties of bonds, and each has a unique interest rate structure.<\/li><\/ol>
            1. Determining which bond is best for you can be made easier by understanding how they operate.<\/li><\/ol>
              1. You may double your investment, depending on the savings bond you select, if you hold it for at least 20 years.<\/li><\/ol>

                What is a Series EE Savings Bond? <\/span><\/h2>

                The Series E savings bond is the processor of the Series EE bond. The first Series E also referred to as the “War Bond,” was used to finance American involvement in World War II. <\/p>

                A series EE bond has a fixed rate that pays interest, and, if held for 20 years, will guarantee a return of twice the value.<\/p>

                To guarantee that the bond’s value doubles after 20 years, regardless of interest rate, there is a one-time adjustment made.<\/p>

                Note that the Series EE bonds can be bought for as little as $25 in face value. <\/p>

                Lastly, depending on the issue date, Series EE bonds purchased before May 2005 have either a variable or fixed rate.<\/p>

                What is a Series I Savings Bond?<\/span><\/h2>

                A series I bond’s interest rate is made up of two different components: a fixed rate and a twice-yearly inflation-adjusted rate. Your money is supposed to be shielded from inflation, which is the general increase in the cost of goods and services therefore you need more U.S. dollars to pay for the same items over time.<\/p>

                How Much are Savings Bonds Paying? <\/span><\/h2>