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Since the inception of the US Savings Bond program in the 1930′s, savings bonds have been issued sequentially in alphabetical order. Starting at the letter “A” and working their way through the alphabet. The bonds include “E Savings Bonds.”

E Savings Bonds (EE/E) are a safe, government issued, savings products that pay interest over time. The E Savings Bonds purchased between May 1997 through April 30, 2005 will pay interest based on current market rates for up to 30 years from the original issue date. E Savings Bonds purchased after May 2005 are earning a fixed rate of return of 3.50%.

All savings bonds, including the E Savings Bonds, can be purchased through the government’s treasury portal, at almost any financial institution or through your employer’s payroll deduction plan.

One tool that can be used to help with saving for your kid’s college education is Education Bonds.

Since the 1930′s US Savings Bonds have been a safe and secure way for consumers to invest their money with no loss to their principal and a guaranteed return on the investment. To use the Education Bonds for your children and their education the bonds must be EE or I Bonds issued January 1990 or later. At the time of purchase the intent of using the Education Bonds for your children does not have to be declared but there are certain specification that must be adhered to.

The person purchasing the Education Bonds for your children must be at least 24 years of age and must register the bonds in their name to take advantage of the tax benefits at a later date. Do not list the child as a co-owner, but children can be listed as a beneficiary and the education exclusion can still apply. If a married couple is purchasing the bonds a joint return must be filed and the tax documents must accurately report both the principal and the interest on the bonds to pay for the qualified educational expenses.

Investors are currently scrambling trying to find safe ways of diversifying their portfolios and to earn a return for their investments. Treasury direct bonds are an option worth considering after you educated yourself on the advantages of this type of investment.

Treasury direct bonds have been a strong investment strategy since 1935. President Franklin D. Roosevelt signed legislation creating the first “baby bond” and that act had prompted large participation by Americans living during that time. United States Savings Bonds are basically a way for the government to borrow money from their citizens by offering a guaranteed rate of return over a long period of time for the loan. The act of purchasing a treasury direct bond is a way to help finance the needs of the government.

The advantages of treasury direct bonds are:

Understanding bonds and bond prices is an essential aspect of making this type of investment. There are a number of elements to take into consideration when choosing bonds to purchase, but one that stands out is looking at what they are correlated to and how this affects your investment.

Making the Correlation


So if you’ve ever taken a look at bond prices, you probably have noticed that in a column nearby is mention of a yield. The yield represents the relationship between the bond’s dollar price and its cash flows (the interest payments and return on your principal amount that you receive throughout and at the end of your term, respectively). So basically, you’re looking at how the dollar is moving in relation to the type of returns you’ll gain for the term period you’ve agreed to.

Treasury bonds are a part of a collective known as “treasuries” that are offered by the government, as well as the Treasury Direct System, which allows you to participate in incremental treasury auctions. There are some basics that you should know about the Treasury Direct System. To learn more about it – and treasuries in general – let’s take a closer look at what they all are.

What Are Treasury Bonds?

When purchasing bonds, it is essential that as an investor you understand bond prices. And while the concept is not very simple to wrap your mind around, it cab be learned. So let’s explore what bond prices are and most importantly, what they mean to you as an investor.

Understanding Bond Prices

The first thing you should know about bond prices is that they mean much more than simply listing a rate related to your bonds. They actually go as far as to forecast future economic activity, as well as future interest rates. In other words, they’re pretty important. So how are bond prices determined? They represent a percentage of the bond’s principal balance (also known as par value or loan amount). So for instance, if you see a bond quoted at 99-29 ¾ for a two-year bond, and you were to buy a two-year $10,000 bond, you would pay a starting price of $9,992.97 to receive your full payout at the end of two years. The 99 in the number is called the “handle,” and the 29 ¾ is called the “32nds.” To figure how those numbers calculated your price, they must be converted into percentages. To do this, you would first divide the “32nd” value by 32 (29.75 / 32 = .9296875) then add the “handle” to this value. This equals 92.9296875%, which would then be multiplied by $10,000 to make $9,992.96875, or $9,992.97.

Making Money from US Savings Bonds is an easy, safe, and secure way to make your investments grow. Investors in savings bonds need to be patient and have the expendable income so to get the fullest return on their investment they need to let their savings bonds mature.

Here are some basic instructions for Making Money from US Savings Bonds:

Investors who are conservative prefer low risk investments because those investments are guaranteed to have some return. An example of a low risk investment is a savings bond. To understand more about bonds, read on for more about Bond Basics for Beginners.

The first thing new investors should know about Bond Basics for Beginners is how does the bond system work? Bonds are secure investment financial opportunities backed by the Treasury department of the United States Government. Basically the government borrows cash from citizens in the form of citizens purchasing savings bonds, eventually the bond matures and the investor gets the purchased value of the bonds.

Savings bonds have been issued in alphabetic order from the US Treasury since the mid 1930s. Currently investors can purchase either series I, series E, or series EE bonds. Another Bond Basic for Beginners is the maximum annual investment that can be made is $5000. Bonds can be purchased directly through the US Treasury or through a legally authorized financial institution.

Answering “How Do You Calculate the Value of a Savings Bond?” is no easy task as the rates fluctuate with the market and each type of savings bond has a different rate of return. Some of the options for affecting one of the rates of returns are whether investors own A, B, C, D, E, EE, F, G, H, HH, I, J and K savings bonds and when they are cashed in. The bonds have been issued in alphabetical progression since 1935.

For an easy way of calculating the value of a savings bond the US Treasury website can help. Simply enter the current date, the bond series, the denomination amount, the bond serial number, and the date of when the bond was issue and you should be able to get the estimated value of the savings bond.

Investing in bonds is a conservative yet intelligent strategy for flushing out the potential of an investment portfolio. This non-marketable commodity is a safe and secure way to maintain the principal as well as guarantee a return on your investment.

One of the best places to buy bonds is through a reputable financial agency or source. Bonds can be bought through a bond broker, however they may require a substantial investment to even consider handling an investor’s transaction. Additionally, they may have extra charges in order to handle the transaction.

Your local bank may be able to handle Treasury transactions as a courtesy to their customers, and may be one of the best resources to purchase bonds. If they don’t, they may offer a mutual fund composed solely of Government Issue savings bonds. This would automatically give you investments in a number of bond properties.