Ways to invest in Series EE Savings Bonds
Now that you know how great of an investment Series EE/E Savings Bonds are, you might be left wording how you can invest in them. One of the great things about the Series EE/E Savings Bonds is that there are a variety of different methods that you can use to purchase the bonds for your own portfolio. All you have to do is find out which method would work the best for you, you can even use more than one method to purchase the Series EE/E Savings Bonds.
Here is a look at the four methods that you can use to invest in the Series EE/E Savings Bonds.
Number one: TreasuryDirect
Treasurydirect.gov allows you to purchase the Series EE/E Savings Bonds online. TO use their website you will first need to create an account, once the account has been created you can begin purchasing the Series EE/E Savings Bonds. The one thing that you need to be aware of when using TreasuryDirect.gov is that they do not issue paper bond certificates, you can only purchase the bonds in the electronic format. Once you have purchased the bonds they are issued directly to your account in their electronic form. You can log into the website any time of the day or night to check your bond portfolio. One of the advantages to using the website to purchase bonds is that you can invest any amount that you want to in Series EE/E Savings Bonds to the penny.
Number two: Local Bank or Financial Institution
You can walk into any bank or other type of financial institution to purchase Series EE/E Savings Bonds, even if you do not have an account with the bank. When using a bank or other financial institution to purchase the savings bonds you will be purchasing paper bond certificates instead of the electronic type. The one thing that you need to know with the paper certificates is that when you purchase them the bonds are issued at 50% of face value. For example, if you spend $25 on a paper Series EE/E Savings bond you will be purchasing a $50 Series EE/E Savings Bond. The paper bond certificate will be sent to you within 15 business days, you won't lose any interest on the bond because the bond will bear the date that you purchased it, not the date that it was shipped.
Number three: Online financial sites, including financial institutions
Some local banks that offer online banking also offer you the opportunity to purchase Series EE/E Savings Bonds online. Just like purchasing the Series EE/E Savings Bond from the local branch you will be purchasing a paper bond certificate, unless the bank states that it is in electronic form. The certificates will be sent from the US Treasury Department within 15 business days.
Number four: Payroll Savings Plans
Some employers, although not very many of them, have created a payroll savings plan that allows you to buy Series EE/E savings bonds through payroll deductions. One of the best things about purchasing the savings bonds in this method is that the money is taken out of your paycheck before you even have a chance to see it, which means you won't even notice that the money is missing. The payroll savings plan can be used to purchase electronic bonds through TreasuryDirect.gov, but it can also be used to purchase paper bond certificates from the bank that your employer currently uses.
One thing that you need to remember when purchasing Series EE/E Savings Bonds is that you can invest more money in paper bond certificates each year than in the electronic form of the Savings Bonds.