It's A Convenient And Safe Placement Especially For Those Non-savvy Investors Or Those Who Are Still Starting To Build Their Wealth. As This Is Issued By The US Treasury, It Is Then Guaranteed By The US Government, It Becomes The Responsibility Of The American Government To Give Back The Principal Plus Interest To The Investors. These Investors May Either Be Individuals, Corporations, Companies, Organizations, And Other Institutions That Are Willing To Purchase The Bonds For A Certain Rate And For A Particular Period Of Time. The Interest Rates May Differ Depending On The Savings Bonds One Would Prefer, And One Has To Carefully Know The Terms And Conditions, And How Each Of These Savings Bonds Work, To Protect Him From The Ever-changing Market Conditions.These Savings Bonds Actually Date Back Decades Ago, When It Became A Popular Way To Participate And Support The Government For The War Efforts. These Savings Bonds Are Issued By The Government For A Particular Reason Or Project, This Is Probably The Most Common And Effective Means During The World Wars When The Government Has To Carry Out Their Campaigns And Other Propagandas. They Had To Source Out Funds, And The Best Way To Go About It Is Through These Savings Bonds. For Example, The Liberty Bonds Which Were Issued To Help Finance World War I, The E Bonds Which Supported World War II, And The Latest Series EE Patriot Bonds Which Contribute To The Government's Fight Against Global Terrorism. These Savings Bonds Are Actually Offered By The Government As A Means Of Funding Big And Long-term Projects Of The Country. By Purchasing Such Bonds, One Shows His Support, Participation, And Nationalism, Because Then, The Government Would See The Stand And Belief Of Its People.The Savings Bonds Are Good Long-term Investments, Although One Can Actually Redeem It After A Year Or So, If He Decides To. But If A Person Has Huge Long-term Plans And Goals, Then It's Better To Hold On To These Savings Bonds Until The Time That It's Really Needed To Be Redeemed For A Significant Use. It Doesn't Really Need An Everyday Tracking Or Monitoring Of The Market Changes Like The Volatile Stocks And Equities, It's More Of A Fixed Rate For A Particular Period Of Time So One Knows How Much To Expect After That Period, Or One Only Has To Hope That The Market Conditions Would Improve To Have Higher Rates In The Next Cycle Of Rate Change. These Savings Bonds Depend Mostly On The Market Rates And Inflation, And Currently Have Two Bond Types---the I Bond And The EE Bond. Depending On The Person's Monthly Income, Monthly Allotted Savings, And Present And Future Needs, One Can Decide Which Of These Savings Bonds He Must Purchase, Or A Combination Of Both Would Be Beneficial For Him, Too. These Savings Bonds' Differences Lie In Its Interest Rates, The I Bond Series Aims To Protect The Purchasing Power Of The Investment So It Gives A Real Rate Of Return Over And Above Inflation, While The EE Bond Series Purchased Before May 2005 Gives An Interest Equal To 90 Of The 5-year US Treasury Yield Average For The Past Six Months, While The Bonds Purchased After That Earn A Fixed Rate Of Return. This Means That The I Bond Is Based On The Rate Of Inflation Measured Through The Consumer Price Index (CPI) While The EE Bond Is Based On The Large Market Bond Trading.The Savings Bonds Are Offered Not Only For Those Who Have Savings Or Left-over Funds Now, They Are Also Good For Those Who Want To Start Saving Even With Their Small 50s Or A Few 100s. There's No Better Time To Start Saving But Now.
