In the past, savings bonds used to be great gifts to help start children on their path to savings. Although the days of buying paper U.S. savings bonds are long gone, there are still ways to purchase them.
First a little history. U.S. savings bonds are debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs. U.S. savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government.
A lot has changed over the years regarding how to purchase and save with a savings bond. Many of the previous benefits are no longer available:
Although many things have changed, there are some advantages to purchasing modern savings bonds:
Even though you can’t earn as much interest as in the past, you can still earn money with savings bonds. With many other savings plans available, however, such as 529 Plans, bank savings accounts and CDs, it may be prudent to research the advantages of each option before purchasing a U.S. savings bond. Give us your feedback and share which benefits you like with the new savings bond regulations.