About US Savings Bonds

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A U.S. savings bond is like any U.S. treasury note or bill, except that it has a different tax consequence. Find out why savings bonds are bought at local banks, as opposed to brokerage firms, with help from a personal asset manager in this free video on the bond market and money management.

Part of the Video Series: Bond Market
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Video Transcript

Hello. I'm Roger Groh with Groh Asset Management. Uncle Sam needs you! Well, maybe not you personally, but he definitely needs your money. One of the ways that you can help Uncle Sam is by buying U.S. savings bonds. Now, these are really just like any U.S. treasury note or bill, with a little bit different tax consequence. But, the way that you buy them is totally different. You buy them at your local bank, for instance, as opposed to your local brokerage firm, like you do with traditional stock or bonds. Now, today, because banks, more often than not, have a brokerage firm associated with them, you may be able to do them in the same place. Just one person wears a bank hat, and one person wears a brokerage hat. And these are, in the case of U.S. savings bonds, fully guaranteed obligations of the U.S. government. Traditionally, they pay a little bit less interest than the traditional bond market, because there are some favorable tax consequences with owning them. And, more often than not, you buy them as gifts. That's their primary use, and you give them to fund an education fund for a grandchild or grandson, or whatever it might be. So look at these, really, as a marketing net set up by the U.S. government to be sold through the banks to raise capital. I'm Roger Groh, that's a little bit about U.S. savings bonds and how you buy them, and, remember, Uncle Sam wants you! Thank you for spending a few minutes with me.

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