INVESTMENT ACCOUNTS » Investing Money

Ever since you were a little kid you have loved classic entertainment. Popeye and Bugs Bunny cartoons (circa WWII), as well as, old black and white films from the time not only fed your imagination, but also fueled your brain to be inquisitive. Aside from being entertained, many of the movies held subtle references to War Bonds and Savings Bonds and you were determined to figure out the meaning of those words.

Over time you researched and found out that Savings Bonds were a way to loan the government money while investors are guaranteed a return on the investment. Hollywood played a huge role in marketing the value of the federal commodities and encouraged many people to purchase bonds and hold onto them until they reached maturity. But the question still remained. How Does a Bond Reach Maturity?

The only thing that helps a Bond Reach Maturity is time, which depends on the type of bond. I series Bonds are sold with a 30-year maturity date and the EE bonds' maturity dates fluctuate from 8-20 years. An individual can cash out their bonds and get the full face value of the purchase as well as the compounded interest earned over that time period. Bonds stop earning interest after 30 years. Depending on the amount of the original investment, the amount earned can be in the tens of thousands of dollars.

Savings Bonds are considered a liquid asset and can almost be cashed in any time before a Bond Reaches Maturity to get access to the money. During the first year of the bond purchase the money cannot be accessed. Prior to five years of owning the bond, they can be cashed out but there is a penalty fee involved. After five years a bond can be redeemed with no penalty. But the best use of a Savings Bond is for a long-term investment strategy and just waiting out time until a Bond Reaches Maturity.

Babies sure are cute and it is tempting to purchase a whole bunch of adorable bunnies, shoes, and rattles for them. At the end of the day they have favorites and too much clutter isnt really all that necessary. What is truly necessary is that every time a friend or family member feels like buying them a gift, they can purchase College Savings Bonds.

There are a couple of options for purchasing College Savings Bonds. Individuals who want to prepare for their childs education can buy Savings Bonds directly from the US Treasury. If a savings bond is purchased and cashed in to pay for educational expenses, such as tuition at a qualifying college, the Federal taxes can be waived. The Federal Government issues savings bonds and there are no state or local taxes to worry about.

Many states also offer College Savings Bonds, perfect to start banking and saving for your little ones big educational future. For example, the state of Illinois issues College Savings Bonds that are tax-exempt, zero-coupon bond. The goal of these bonds is to provide individual investors a financial opportunity to help pay for their childs education.
Any one over the age of 18 can purchase College Savings Bonds. If they are being purchased for a minor, a child under 18 can get gift deliveries in a minor linked account directly through the US Treasury through TreasuryDirect.

One of the greatest gifts parents can provide their children is the means to afford a college education. College Savings Bonds are one way to help finance this dream. Purchasing them now and letting them grow to their fullest maturity can build a significant nest egg built specifically with this goal in mind. So next time you go to the local mall and start getting sucked into that cute little outfit in the window, take a step back. Take that extra cash, purchase a College Savings Bond and know that your child will be getting financially closer to a college degree.

Finding the Interest Rate for a US Savings Bond is a little bit like singing the alphabet song as they have been issued in alphabetical progression since 1935. So the amount of interest earned depends on whether you are in possession of an A, B, C, D, E, EE, F, G, H, HH, I, J or K savings bonds...

The way savings bonds work is quite simple. Bond investments are securities issued from the U.S. Treasury and have the backing of the U.S. Government behind them. There are penalties if cashed out early or improperly, but generally they are extremely safe investment options for those interested...

Purchasing bonds is a good choice for diversifying an investment portfolio. Savings bonds are non-marketable investment opportunities funded by the United States government. The nature of this arrangement is that consumers purchase bonds from the Treasury, who in turn uses this money to fund...