Saving bonds are credit securities hand out by the U.S sector of the treasury to assist the government to pay for borrowing needs. The saving bonds are known to be the safest bonds to invest on since they are supported by the creditworthiness trust of the U.S government.

Since the start of the year 2012 paper saving bonds stopped selling at the financial institutions. Saving bonds are advanced with technology and now are issued online. For you to purchase saving bonds, you are supposed to go online to get saving bonds. There are two types of electronic saving bonds that you are available online. These two are

Series I U.S saving bonds

The type of bond is inflation- indexed. Series I U.S saving bonds is traded at face value, and one can choose to cash up to 10,000(Face value) during any time of the year. Just as in the other form of saving bonds, if one redeems the bonds in the first five years you will lose the recent three months interest. While if the bond is funded after five years, there are no penalties for redemption (recovery)

Series EE U.S saving bonds

The type of saving bond is an appreciation nature (or accrual-type) of investing security. They are usually sold at their face value. Meaning that, one will pay 40 dollars for a 40 dollars bond. Series EE U.S saving bond has interest when it is redeemed upon maturity. It is impossible to buy more than 10,000 dollars of the bond in a period of one year; it is because this is the maximum of saving bonds on the market allocated to investors per year.

Main advantages of saving bonds

Popularity as gifts-The bond is commonly popular birthday gifts and graduation gifts. Although they can also be used to fund education, add on retirement income plus other special occasions. The good thing about savings bond is that unlike other bonds, minors can possess U.S savings bonds in their names. For teenagers, this is the best bond which favors their needs. If a minor wishes to invest and choose to use his/her names because of his reasons not to operate under parents’ names, the savings bond offer this chances.

Tax benefits

With saving bonds, you do not pay the state or either local taxes on the interest of the bond. You can also give away paying federal taxes on the interest of the saving bond until it reaches maturity. Besides if the bonds are issued for qualified education expenses tax is exempted.

These saving bonds can only be bought online in small increments as little as $25 up to $10,000 yearly. You can learn more on how to buy these bonds online from other websites you will be able to gain more knowledge on how you can be able to buy the saving bond online for investment. Saving bonds are the best alternative to many people since the terms of its issuance are flexible to reach many groups of investors.