About Compare Saving Bonds

Savings bonds are one of the safest investments available. This is because they are backed by US federal governments. However, despite this safety provided by savings bonds, it is still often overlooked by most investors. There are actually several types of savings bonds available.

The treasury department offers two products: Series I and Series EE bonds. Comparing savings bonds require a quick discussion of these two primary products which the government offers. Series I bonds are based upon the Consumer Price Index. Their price is determined at the time that they are bought. They contract inflation on semi-annual basis. Every six months, a portion of the Series I bonds are adjusted according to the consumer inflation it encounters. Series EE bonds are accrued monthly but is compounded every six months. It matures thiry years from its date of purchase. It matures at a higher face value than Series I bonds.

There are also college savings bonds, College savings bonds are tax-exempted, zero-coupon bonds issued by some US states. They are sold at discounted prices compared to their maturity value. Every six months, interest is compounded for college savings bonds. The number of years to go until maturity determines the cost of each bond, as well as the market conditions during the sale of these college savings bond.

The interests rates and the costs are different for each types of savings bonds. Series EE savings bonds accrues monthly and is compounded every six months. Series I Savings bonds earn interest on their issue month, and begins on the first day of the said month. College savings bonds usually accrue interest every five years, or depending on the program of the state where these college savings bonds are issued.

Savings bonds are one of the safest investments available. This is because they are backed by US federal governments.
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