Please educate me...

[Doctor Handsome]

On savings bonds. I've read on multiple websites, but I still don't understand them fully. I need layman's terms. Particularly about EE bonds. What's the difference between them and a plain savings account? Can you put money into the bond whenever you'd like? There's probably a better forum to ask this question on.

[Ronald Wilson Reagan]

I don't know specifics, but I know the difference between a bond and a savings account is pretty much access. With a bond, you put it all in at once, and you have to wait a certain amount of time for it to "mature" and usually, like with a US bond at least, you cash it all in at once. Savings account is just a bank account where your money gains a small amount of interest. Bonds tend to have higher interest rates.

[BriDen]

I won a $50 savings bond for a painting I did in 8th grade. Only 20 more years till I get to cash it in.

[Doctor Handsome]

I don't know specifics, but I know the difference between a bond and a savings account is pretty much access. With a bond, you put it all in at once, and you have to wait a certain amount of time for it to "mature" and usually, like with a US bond at least, you cash it all in at once. Savings account is just a bank account where your money gains a small amount of interest. Bonds tend to have higher interest rates.

The EE bonds only have a 1.2% interest rate or something like that. Can you put money into a bond periodically? Or do you buy it and just sit on that amount and wait?

[James Joyce]

My explanation enclosed is very laymen so please forgive me for any misinformation.

Govt. saving bonds are effectively capital you're investing onto the state for a given length of time,i,e. a bit like buying shares in the government. The security/theory of it being that since the receipiant of the capital (whom are supposedly fiscally responsible as bounded by legislation) you are guaranteed a return on it albeit at a smaller interest rate compared to commercial banks who invest in commercial entities who yield higher returns but are inherently less than secure.

A wiser place to put your bond money would be to the IMF or International Monetary Fund since you have the security of a number of member states backing your investment. Though the interest rates on return is very marginal, it's a very very safe place to invest.

[Paper Crane]

give your duckets to these guys.

[Mouth]

The basics can be found here:

http://www.ehow.com/how-does_4689652_ee-bonds-work.html

Now isn't a great time to invest in EE Bonds, as interest rates are unusually low and 1.2% is shit. To put that in context, the Coca Cola Co. has just released a bond guaranteeing something like a 5% interest rate.

[lampshade]

Go with a no load S&P 500 Index fund.  Your return will be better. 

[oyolar]

give your duckets to these guys.

Second'd.

[???]

Expand Quote

give your duckets to these guys.

[close]

Second'd.

Is this amway?