There are several advantages associates with investing/purchasing bonds. For example, you will have a more secure cash flow and prevent/reduce most of the risks from direct trading in the stock market.
There are different kinds of bonds to choose from, one of which is the Series EE Savings Bonds. This type of investment is non-marketable, but it promises to double your money over time.
What are Series EE Savings Bonds?
Series EE Savings Bonds are savings bonds made/issued by the U.S. government. It is also known as the Patriot Bond. As mentioned, it is non-marketable, which means that they cannot be easily traded in the stock market. You can only buy and sell them via over-the-counter markets.
How Can I Buy Them?
Before, Series EE bonds were usually bought in a local bank and were given in paper form.
But now, they can also be purchased at the US Treasury Department’s securities website, TreasuryDirect (www.treasurydirect.gov). These bonds will be sent directly to the account holders in paperless form. They will also receive a catalog of other Treasury holdings that they have.
What is the Maturity Rate?
The maturity rate of the bond will depend on when it was issued. For example, bonds that were issued in 1980 will have a maturity rate of 11 years, while those issued in 2003 up to the present will have a 20-year maturity rate.
When your bonds mature, you will not receive physical cash. Instead, the interest value will increase and it will be added to the bond, thus increasing its value.
Who is Eligible to Buy Series EE Savings bonds?
Private corporations, estates, and individuals can buy both electronic and paper Series EE Savings Bonds. However, there are some eligibility requirements.
- You must have your own social security number.
- You need to provide a permanent address.
- You must be a US citizen and are living in the country.
- You must be a civilian employee.