You may remember savings bonds as gifts you received from family members for birthdays. Savings bonds remain a secure and low-risk investment tool. They are financed by the U.S. Treasury and after the Federal Reserve receives your payment, they will mail you your savings bond. Aside from being a good way to supplement education costs or retirement, savings bonds also protect you from the ups and downs of the market and inflation. You can purchase them from a variety of financial institutions.
Research the type of savings bond you wish to purchase. There are two main types: I savings bonds and EE savings bonds. I savings bonds are a liquid savings tool and carry little risk. They are sold at face value and accumulate interest while providing protection against inflation while you own them. EE savings bonds are sold at half of their face value and earn interest based on current market rates for a set period of time.
Visit a financial institution to purchase the savings bonds. Most banks will be able to sell them to you.
Fill out the necessary paperwork. You will receive a form on which you will provide your full legal name, address and Social Security number. If you are purchasing a savings bond as a gift and you don't know the receiver's Social Security number, you can use your own. When he or she receives the bond, a portion of the number will remain hidden for security and privacy reasons.
Return the form to the bank teller and purchase the bond. You can pay with cash or, if you have an account at the bank, the teller can deduct the amount from your account.
Wait for the bond to arrive in the mail, or have the bank mail it to the recipient's address. It should arrive in about three weeks.
- If purchasing the savings bond as a gift, you can ask for a gift certificate at the bank. You can mail it prior to the receiver actually getting the savings bond.
Julia Forneris has been a writer and editor since 2002. Her work has appeared in economics magazines such as "Region Focus" and on various websites. The editor of Scratch That! Editorial, Forneris holds a Master of Arts in literature from Virginia Commonwealth University.