United states savings bonds. Information on investing in U.S. savings bonds
Back in the days of World War II, United States savings bonds were advertised the way cars, beer and clothes are today. In an effort to help Celebrities called on citizens to "Buy Bonds". United States savings bonds were made to look like a glamorous, and patriotic, way to invest hard earned money. After the war ended, though, people were more interested in what they could acquire with the money they earned. Investment was often passed over for spending, and the popularity of the United States savings bond faded as the years passed.
However, recently, as the stock market struggles, more people are taking a second look at United States savings bonds as a way to invest their money. Why are United States Savings Bonds making a comeback in the early 21st century?
An article in the May 2002 Christian Science Monitor stresses the safety of investing in United States savings bonds. The money used to purchase United States savings bonds is guaranteed by the federal government, so there is no risk of losing an investment. Admittedly, United States savings bonds do not hold the prestige and glamour of stocks; but, with the market being so unsteady in recent years, investors are turning their backs on excitement and instead looking for a place to earn a little money without worry.
United States savings bond returns are low, percentage wise, but compared with bank money markets, they offer a more lucrative alternative. On average, United States savings bonds earn a one to two percent higher yield than traditional money market or savings accounts. Also, people can buy United States savings bonds and not have to worry about being taxed on the state and local levels. State and local taxes bureaus are not allowed to touch a cent of it. Why? Because the investors of United States savings bonds is essentially "lending" their money to the federal government so that it may continue to run - and then the money is returned, with interest.
There are many kinds of United States savings bonds out there in the market. They can be bought at banks, through some payroll plans at work or directly from the US Treasury Department. Many new and experienced investors are finding the right bond to invest in.
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