Course 110: U.S. Savings Bonds
What Types of Savings Bonds Are Available?
In this course
1 Introduction
2 What Are Savings Bonds?
3 Where Can You Buy Savings Bonds?
4 What Types of Savings Bonds Are Available?
5 How Much Money Do Savings Bonds Earn?
6 How Do You Redeem Savings Bonds?
7 What Taxes Apply to Earnings from Savings Bonds?
8 Savings Bonds Have Been American Favorites for Decades

There are three types of U.S. savings bonds today, distinguished by the ways in which they pay interest.

If you bought or received a savings bond before 1980, you would have owned a Series E or Series H savings bond. That year, Series EE and Series HH bonds replaced the original series. The two current series offer different maturities and interest rates. In 1998, the U.S. government introduced inflation-indexed Series I bonds.

Savings bonds offer people with limited resources a way to begin an investment program. The U.S. government issues Series EE bonds at one half their face value, which ranges from $50 to $10,000. At maturity, you can redeem the bonds at their face value. You may buy up to a face value maximum of $30,000 in Series EE bonds annually. Series EE bonds earn interest for 30 years.

Series HH bonds earn interest for 20 years. You were able to acquire Series HH bonds only through an exchange of your Series E or Series EE bonds; however, as of September 2004, HH/H series bonds are no longer available for purchase. Existing bonds have denominations of $500, $1,000, $5,000, and $10,000. Unlike Series EE bonds, Series HH bonds were acquired at their full face values and thereafter receive regular interest payments.

Series I bonds also are sold at their full face values, beginning with a minimum denomination of $50. Other denominations are $75, $100, $200, $500, $1,000, $5,000, and $10,000. Like Series EE bonds, you receive the interest earned when you cash the bond. I bonds earn interest for 30 years.

You can use all types of savings bonds in several ways --for example, as a regular savings program through payroll deductions and as a very safe instrument that provides stability to your investment portfolio. Because of the low minimum investment requirements, they also offer people with limited resources a way to begin an investment program.

Next: How Much Money Do Savings Bonds Earn? >>


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