Tuesday, March 15, 2011

How US Savings Bonds Mature

United States savings bonds are a sound method of investing, as long as you are looking to save for the future and aren't expecting immediate results. Savings bonds are purchased and then mature at different rates depending on the bond itself. Interest is accrued and once the bonds mature, they can be cashed in for the original investment plus interest. These bonds are fantastic gifts for children and newborns to help them save for their futures.

There are a few different types of bonds with different maturity rates.

1. Series EE Bonds are purchased at half of their value and can only be purchased up to $5,000 (face value) each calendar year. These bonds will be worth more as time goes on including interest, and mature after 30 years. Upon this maturity date, the bond holder is paid the original investment plus all of the interest accrued over 30 years.

2. Series HH Bonds are purchased at their face value (from $500 to $10,000) and can be purchased in unlimited amounts. These bonds, however, do not gain any interest, and mature after 20 years.

3. Series I Bonds are sold at face value. They grow by inflation-indexed earnings for up to 30 years. You can purchase up to $5,000 in Series I bonds each year.

As you can see, it takes decades for these bonds to mature, however once they do, they are worth every penny. They are a great way to invest for future generations to ensure they have some sort of savings by the time they reach adulthood.

By: C. J. Harrison
As an editor for Garden Flag Pole and Garden Flag Holder, the editor reviews dozens of supplies and products on the internet. http://www.gardenflagpoles.org/garden-flag-holder.htm