How to Buy a Government Saving Bonds
Savings bonds are a great way to save money effortlessly, and also make a great gift for kids and grandkids. You'll be surprised how easy it is to purchase government savings bonds. If you're new to investing and aren't sure where to start, then savings bonds are probably the best choice. You can save your money in a government sponsored program, and rest assured that you're earning a steady, guaranteed rate of interest.
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Instructions
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Purchase Directly from the Government
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Log on to the government website "Treasury Direct." This is the website of the US Government, where you can purchase bonds directly from the treasury department.
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Create an account. You will need your social security number, a US address, a checking or savings account and an email address. Once you enter this information, you will be directed to enter a password and to answer some security questions.
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Buy your bonds after logging onto your account. Select the owner of the bond you want to purchase; this can be one or two people. Then you will choose which type of bond you want to purchase, the amount of the bond, and when you wish to pay for it. You can even set up a regular purchase plan, such as once a month.
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Review your information, and click on "Submit." You just bought a Government Savings Bond! You should receive your bond in the mail within 2 to 3 weeks.
Local Purchase
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Ask your employer whether he offers a savings bond plan. Many businesses give an option for direct purchase from your paycheck. All you have to do is choose the amount and fill out the form. Your savings bond will arrive by mail in 2 to 3 weeks.
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Go to your local bank or credit union if you want to buy a government savings bond for a special occasion. They will ask you for the basic information and you can purchase your bond in person.
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Inquire with your brokerage as to whether they handle government savings bonds. Most firms will, but charge a nominal fee.
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Tips & Warnings
Savings Bonds are a long term investment, and you're not allowed to cash them in for one year after purchase.
If you cash your bonds within the first 5 years of purchase, you will be penalized 3 months worth of interest.
