How to Buy a US Savings Bond
Government-issued savings bonds are easy to buy, require no maintenance other than secure storage, and are easy to redeem. The purchase of a U.S. savings bond is considered a low-risk investment. If you cash a savings bond prematurely, your only loss is the additional interest you would receive by keeping it until it reaches maturity. A savings bond makes an excellent gift for anyone, especially children. The U.S. Department of the Treasury offers five ways to purchase savings bonds.
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Instructions
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Identify the denomination of savings bond you wish to purchase: $50, $75, $100, $200, $500, $1,000, $5,000 or $10,000. For each denomination, you will pay half of the face value. Pay $25, for example, to purchase a $50 savings bond.
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2
Purchase the bond or bonds of your choice electronically by visiting TreasuryDirect.gov. You will receive no paper bond for such purchases.
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Complete an online order form — again by visiting TreasuryDirect.gov — and mail it to the address shown on the form.
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4
Visit a bank or credit union and purchase a savings bond. Complete the paperwork, which will be submitted to the Treasury Department by the financial institution. The paper bond will be mailed to you in 15 business days.
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5
Buy a savings bond from the financial institution of your choice through its Internet presence. Visit the website of the bank or credit union and look for a link for purchasing U.S. savings bonds.
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Enroll in a payroll savings plan through your employer. Specify the amount of your pay to be withheld from each paycheck and applied toward the purchase of savings bonds in the denomination of your choice.
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Tips & Warnings
Store savings bonds in a safe, fire proof location. Copy the serial numbers off the bond and keep it in a separate location.
Consider reading tips on paying capital gain taxes before buying or cashing in a savings bond.
Make sure that any website you are buying bonds from or typing in personal information is an actual government treasury website.
