Savings Bonds that provide great fixed-income investment

Savings bonds, after convertible, and municipal bonds, are the third alternative option for investors to consider - which I am sure most of us have heard about. This one is the most effective fixed-income investment you can currently make, and buy these bonds from directly the U.S. Treasury.

Unfortunately, most people do not know it is possible; however, anyone can visit and open an account and buy any amount, up to the penny - ranging from $25 to $10,000.

And here's the best part: these savings bonds currently pay an astounding 9.62 percent - this is not a typo error. These bonds are paying a fixed interest rate which now is higher than inflation. There is only one dilemma you can only purchase the maximum amount of $10,000 per calendar year.

Savings bonds consideration and buy methods

Again, these U.S. Series I Savings Bonds will yield interest at a fixed rate for 30 years. However, there are some additional things to be aware of:

  1. The investor can cash out their savings bonds at any time after holding them for a minimum of one year.
  2. If you choose to sell your savings bonds before holding them for five years, then the prior three months of earned interest are foregone.

For those who are interested in purchasing these bonds, There are two methods to buy these savings bonds:

  1. Buy them via the internet (recommended) by opening your account on the portal.
  2. You can purchase these paper savings bonds every year when you are filing your annual income taxes. Complete IRS Form 8888 and specify the amount of savings bonds are desired to buy in increments of $50, and the bonds certificate will be delivered directly to your designated address.

That is it. It is that easy, and this option of investing in savings bonds presented here is the third option to consider as a fixed income return in the current market conditions. I plan to disclose other opportunities to my readers over the coming months, so please stay tuned.

Final thoughts

In light of the current economic climate, it is not the time to get into stocks. I would recommend investing a specific amount of money regularly, bi-weekly or monthly, into savings bonds.

Keep in mind that I'm not able to offer specific investment advice. But, I do hope that the method I have described above will give valuable tips for your investment strategy.

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