BONDS » Current Rates, News & Information

Savings Notes/Freedom Shares (SN/FS) were a type of promotion sold in conjunction with Series E Savings bonds. Savings Notes/Freedom Shares were issued from May 1967- October 1970. The purchase price was discounted by 81%, meaning a $100 face value Savings Notes/Freedom Shares was purchased for $81.00.

Savings Notes/Freedom Shares were a type of incentive to increase the sales of U.S. Treasury savings securities while encouraging individuals to save more money for their future. Originally, the Savings Notes/Freedom Shares maturity term totaled 4½ years.

Bond funds are similar to mutual funds a bit because they are both collective investment strategies with diversification in their holdings. While mutual funds included stocks, bonds, and other securities, bond funds are solely composed of bond and debt security components.

With the variety of bond funds there may be further subdivisions in classification.  According to the Securities and Exchange Commission, “bond fund(s) may concentrate its investments in a particular type of bond or debt security—such as government bonds, municipal bonds, corporate bonds, convertible bonds, mortgage-backed securities, zero-coupon bonds—or a mixture of types. The securities that bond funds hold will vary in terms of risk, return, duration, volatility, etc.”

Bond funds are very similar to mutual funds in the way they behave. Bond funds have investment managers who research all their components and create the bond package, they are diversified with and have assortment of bonds in their holdings, bond funds can be bought or sold at will and automatic reinvestment of profits can be scheduled.

Modern technology can sometimes be the best advancements we have made (such as the internet) or the creation of nuclear bombs. If you are someone who is a bit shy of technology you can still have your choice of contemporary or old school when it comes to purchasing US Savings Bonds. These securities can be issued either as an Electronic or Paper Savings Bonds.

Savings Bonds were developed as a way for citizens to loan money to the US Government. Investor would convert their hard earned cash into a paper document that has a face dollar amount, serial numbers, and earns interest. These Paper Savings Bonds matured over a period of decades and then could be cashed in at financial institutions, such as banks when they mature. Although most transactions are done via the internet, Paper Savings Bonds still exist.

To compare the Series I Savings Bonds vs. Stocks, you must understand the differences of these two types of investments. In general stocks and bonds have some inherently different characteristics.
Let’s compare the differences:

Series I Savings Bonds and Stocks both serve important purposes in the financial world but they are extremely different. I Series Savings Bonds is considered to be conservative with the money invested into it, because after all that money is loan money by US citizens to the US government. If you think about it, if you loan anyone money, you expect that money in return and probably some interest with it as well.

Stocks on the other hand are different, because when you buy a share of stock you are using your money to buy a piece of ownership into that company. And with all companies, once you own it, it is up to how well the company is performing in order for you to make a profit. Relying on the performance of the company then becomes a risk for you, because you only hold a few shares of the company meaning you do not have control over the operations of that company’s performance. There is also the confidence factor with stocks, if many investors feel confident then you are sure to make some money, but if the confidence is negative – your investment will plummet.

After saving, researching and planning for your future, you have finally decided to purchase some savings bonds to help diversify your retirement portfolio. History has proven that this government issued commodity is an easy, safe and secure way to prepare for your financial future. The next step is to locate Trusted Sources for Savings Bonds Purchases and officially acquire some of these assets.

Although you may have a great relationship with your portfolio manager, as they are not a Trusted Source for Savings Bonds Purchases as they do not have access to government bonds. You can still work with them and trust them, but they will be of little help in purchasing Savings Bonds.

Tracking the value of a Savings Bond daily would be like watching paint dry. An investor can check and check, but it isn’t done until the final touch. How to Track Savings Bonds Daily is a question that cannot really be answered.

However, in the best attempt of figuring out How to Track Savings Bond Daily, one should consider visiting websites with Savings Bond Calculators.

With the stock market fluctuation to great highs and lows, the feds fiddling with the interest rates and gas prices having more moves than a Duncan Yo-Yo, it is hard to gauge yous financial future. It is also challenging to see how your current investments compare to the market like how Savings Bonds Rates Compare to Inflation.

Savings Bonds Rates vs. Inflation comparison depends on what type of Savings Bond you are holding onto. The most current Savings Bond Series is the I Bond and according to TreasuryDirect “While you own them they earn interest and protect you from inflation.” This is because they are a low risk, guaranteed return liquid investment.

Do not confuse US Savings Bonds with Zero Coupon Bonds as they are different animals and Zero Coupon Bonds have a unique set of rules unto themselves. Zero Coupon Bonds are investment opportunities, sold at deep discounts from their face value. When the Zero Coupon Bonds mature, the investor does not score an interest rate or yield, but the bond can be cashed in for the full face value. For example if a consumer buys a Zero Coupon Bond for $25 that has a face value of $100, when the bond matures that will be the return on the investment.

Zero Coupon Bonds tend to mature after long periods of time such as ten, fifteen or more years. They are best used as an investment strategy for long-term goals such as paying for a child’s education or for a down payment for a home.

After weeks of reading and investigating you are now interested in investing in Savings Bonds. You have a sizable amount of money to invest so you want to put nearly all of it into this type of security. However, you should be aware that there are maximum amounts of bonds that people can purchase annually.

If you are interested in purchasing Series I Savings Bonds, the maximum amount is limited both by the type of bond and the social security number used for purchasing. Investors can purchase up to $5,000 worth of either Electronic or Paper Savings Bonds per Social Security number in a calendar year. Series EE savings bonds also have the same limit, making the total purchase of diversified bond value $20,000 annually. The Electronic purchasing can only be done through the government website treasurydirect.gov. The total maximum purchase limited to $30,000 per series ($30,000 each for paper or electronic, for a total of $120,000 a year for EE and I bonds). That rule has existed since 2003.

Inflation rates are announced twice a year. A Semi-Annual Inflation Rate occurring Every May 1st and November 1st is the inflation rate that is altered by the Consumer Pricing Index (CPI). The CPI rate is based on the monthly fluctuation of prices paid by urban consumers for a representative of goods and services.

The Semi-Annual Inflation Rate on May 1st is measured by an analysis of the inflation over the preceding October through March. The November 1st rate is a measurement of inflation over the preceding April through September.