Can I automatically invest in U.S. Savings Bonds using my IRS tax refund?
- How are Series EE Savings Bonds different from Series I Savings Bonds?
- How are Series EE Savings Bonds similar to Series I Savings Bonds?
- What are the minimum investment requirements if I am interested in investing in U.S.Treasury securities?
- What is the maximum amount I am allowed to invest in Series EE or Series I Savings Bonds?
- How do I open a treasurydirect.gov account?
Yes. Beginning in 2011, a taxpayer may use a tax refund to purchase up to $5,000 of U.S. Treasury Series I Savings Bonds, low-risk bonds that grow in value for up to thirty years.
How are Series EE Savings Bonds different from Series I Savings Bonds?
You cannot purchase paper EE bonds, but you can purchase paper I bonds. Interest paid on a Series EE Savings Bond depends on when it was purchased. If an EE Savings Bond
U.S. Treasury bonds are a safe and secure way to invest your money, though they do not earn interest rates as high as some stocks. You trade some income growth for security.
was purchased after May 2005, it earns a fixed-rate of return. Any Series EE Savings Bond issued from May 1997 through April 2005 earns variable rates of interest, based upon 90% of the six-month average rate of five-year treasury security yields. Series I Savings Bonds earn a combined interest rate, a fixed-rate disclosed when you buy, and a semi-annual inflation adjustment.
How are Series EE Savings Bonds similar to Series I Savings Bonds?
Both bonds may be purchased electronically through treasurydirect.gov, and can be purchased for any amount to the penny, beginning with a minimum investment of $25. You may cash in the bonds after 12 months. Both bonds earn interest monthly, and are compounded semi-annually.
What are the minimum investment requirements if I am interested in investing in U.S.Treasury securities?
If you are buying U.S. Treasury securities directly from the U.S. Treasury, the minimum amount that you can purchase is $1,000. Savings bonds have a very low minimum purchase amount, and may be purchased for $25.
What is the maximum amount I am allowed to invest in Series EE or Series I Savings Bonds?
Each investor (with a discrete social security number) is allowed to invest $10,000 each calendar year. Investors may also buy up to $10,000 in Series EE Savings Bonds and up to $5,000 in Series I Savings Bonds with an IRS tax refund each filing year.
How do I open a treasurydirect.gov account?
It is very easy to open a Treasury Direct account to purchase treasury securities. Go to treasurydirect.gov, and click on the link to open an account. In three steps, you may begin to invest.