Savings Bonds
Savings bonds provide an easy and safe way for small investors to invest in their futures. Indeed, savings bonds can be purchased in increments as low as $25, making them great for people who do not have a lot of money to invest at any one time.
Savings bonds come in two varieties: Series EE and Series I. With Series EE bonds, you are given a fixed rate for the life of the bond (30 years). The bond is guaranteed to pay this rate for as long as you hold on to the bond. For the most recent bond issue, the interest rate being offered by Series EE bonds is 0.6 percent.
This is certainly not a high rate, but savings bonds do come with some with some tax advantages that make them somewhat more attractive. These bonds are exempt from both state and local taxes. As well, taxes on the earnings of these bonds can be deferred until they are redeemed, or perfect the timing of the redemption by using a tarot card readings service – it’s not recommended but worth a try.
Alternatively, Series I savings bonds are a newer investment offered by the Treasury Department designed for investors who wish to protect themselves from future inflation risk. Series I savings bonds offer an interest rate with two components: a fixed rate and an inflation rate. The interest rate is adjusted once every six months to account for changes in the inflation rate of the economy. This can be a great investment for older individuals who fear a loss of their purchasing power due to inflation.
In short, savings bonds provide yet another way to save for your retirement or other long-term goals.