| Savings Bonds are available to purchase in | | | | them in except under certain circumstances. If |
| different kinds. One type is the Series EE Savings | | | | they are cashed in before at least five years of |
| Bond. You can handle everything involved with this | | | | issuance then you will receive a penalty of the |
| investment online, including purchasing, redeeming, | | | | last three months interest. Interest on these |
| or managing them. With the help of the internet | | | | types of savings bonds are at a fixed rate. The |
| comes many conveniences. | | | | value increases every month and is compounded |
| If there are any questions you have about | | | | semiannually. |
| savings bonds you can find them online from | | | | There are certain restrictions on who can own |
| several different sites available. You can receive | | | | savings bonds. Some of these restrictions are, |
| information on the different types and what the | | | | you must reside in the United States, if you do |
| differences are between them, you can also find | | | | not live in the United States you have to a citizen |
| the interest rates and find out how much your | | | | and have a U.S. Address on record, regardless of |
| savings bonds are worth. | | | | where you reside you can own them if you are a |
| The Series EE Savings Bonds are purchased at | | | | civilian employee, and minors are allowed to own |
| half of their face value. For example, you can buy | | | | them. |
| a bond worth $100 for the amount of $50. The | | | | The interest earned on your savings bonds needs |
| maximum amount you may purchase in one | | | | to be reported on your federal and state tax |
| calender year is $5000. The bonds that are | | | | returns. This can be done in two different ways. |
| purchased now have a twenty year maturity for | | | | These are cash and accrual basis. You can report |
| them from the date they were issued. They will | | | | the interest when you redeem them or on a |
| double in their value in the twenty years. | | | | yearly basis. If you choose to do this on a yearly |
| As with the Series I Savings Bonds they need to | | | | basis you must continue to this every year and |
| be at least one year old before you can cash | | | | on all of your accrual-type securities. |