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U.S. Savings Bonds. Emma Reyes. Features of U.S. Savings Bond. A bond that offers a fixed rate of interest over a fixed period of time Not subject to state or local income tax Cannot be easily transferred and are nonnegotiable Can be bought as gifts.
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U.S. Savings Bonds Emma Reyes
Features of U.S. Savings Bond • A bond that offers a fixed rate of interest over a fixed period of time • Not subject to state or local income tax • Cannot be easily transferred and are nonnegotiable • Can be bought as gifts
How do you make money on this kind of bond? Give an example. • Provide U.S. with government funding dollars • In return for using your money U.S. pays you interest
What limitation are there for a U.S. savings bond? • Cannot be easily transferred • Non-negotiable
What type of investor would most likely use this fund? • One who is willing to take too much risk but doesn’t need the money back immediately. There is zero to no risk with U.S. savings bonds due to the fact that you can never lose money on a savings bond because they are backed by the U.S. government and the value cannot go below zero. Investor must be willing to wait the entire period of time allotted for your bond to build interest
What is the risk level for this type of investment? • Very low risk • Bond value cannot go below zero • U.S. treasury securities backed by U.S. government • Lost, stolen, or destroyed bonds can be replaced
Companies that sell U.S. savings bonds • Banks • Credit Unions
How much money do you need to get started? • Lowest bond sold now is for $25.00 but cost $17.25 to buy
Work cited • http://www.sec.gov/answers/savingsbond.htm • ftp://ftp.publicdebt.treas.gov/marsbom0602.pdf • http://www.investopedia.com/terms/u/ussavingsbonds.asp