Safe, secure, and a guaranteed return on investments – Savings Bonds are an excellent tool for diversifying a portfolio. Savings Bonds are government-backed securities. US citizens purchase the bonds from the US Treasury. Over time the value of the bonds increase as they are guaranteed a rate of return. When it is time to pay back the loan, the bonds mature and investors get their initial money back, as well as compounded interest. The Average Return for Savings Bondsdepends on several factors.
Unfortunately there is no Average Return for Savings Bonds because each Saving Bond operates differently from its predecessor. The Average Returns for Savings Bonds depends on whether one is in possession of an A, B, C, D, E, EE, F, G, H, HH, I, J or K savings bonds, when they matured and when they are cashed in.
The best way to locate the Average Return for Savings Bonds is to visit Treasury Direct which is the website managed by the US government. Recently they released news on the Average Interest Rate for current Savings Bonds, the Series I Savings Bonds and Series EE. When the bonds are purchased between November 2008 Through April 2009, Series I, the Average Interest Rate for these Savings Bonds are 5.64%, Series EE to Earn 1.30% Fixed Rate.
The Average Return for Savings Bonds is currently on the decline. Many savings bonds operate on a so-called inflation-index therefore the current earnings will fall sharply. For example, the EE Savings Bonds, the interest rate is directly related to the five-year Treasury note yield. The EE Average Interest bond rate is changed every six months to be 90% of the average five-year T-note market yield in the preceding six months.
The Average Return for Savings Bond for the I series is calculated by adding a fixed rate. The rate is currently set at 1.1% of the inflation rate over the preceding six months as measured by the government’s consumer price index.