Anyone want to recommend one Savings Bond type over another? EE or 1? Graduation Present Thinking.
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Series EE U.S. Savings Bonds are an appreciation-type (or accrual-type) savings security. They are sold at face value, so you�ll pay $50 for a $50 bond. The bond is worth its full value upon redemption. The interest is issued electronically to your designated account. You cannot buy more than $10,000 (face value) during any calendar year. If you redeem the bonds in the first five years of buying them, you�ll forfeit interest payments for the three most recent months. After five years, you won�t be penalized for redemptions.
Series I U.S. Savings Bondsare inflation-indexed. They are sold at face value and you can buy up to $10,000 (face value) in any calendar year. Series I Bonds offer a fixed rate of interest, adjusted for inflation. As with Series EE Bonds, if you redeem Series I Bonds in the first five years, you�ll forfeit the three most recent months� interest. After five years, you won�t be penalized for redemptions.
TIA
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