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How to Buy US Savings Bonds Online

How to Buy US Savings Bonds Online PhotoAs of January 1, 2012, there are no longer paper saving bonds, according to the US Department of the Treasury. This great change will save an estimated of $70 million over the next 5 years. This change is to make all transactions electronic is to ensure customer service satisfaction and also reducing costs for the government.

Saving bonds have been around for a long time. It is called “liberty bonds” during the World War I which was used to fund the war. Paper bonds were used before to ensure buyers of their accounts. Yet with this great shift, it would now be easier for many to have transactions even if one is at home due to these online bond transactions.

So how do you buy savings bonds online?

Get some ideas

Do you really know what a savings bond is all about? If you don’t, you probably have to do your own research. There are a lot of online sites that can explain in detail what is the use of a savings bond. The Department of the Treasury website can further show what is treasury bonds all about.

Savings bonds can be bought for your own personal use or as a gift to someone in your family. Though, this type of bond is non-marketable – meaning you can’t sell it to gain a higher price compared to treasury bonds. Savings bonds have its own interest rates that can be cashed out as they grow mature within a couple of years.

Go to the government website

To buy savings bond online, one must go to treasurydirect.gov and open an account. This website is run by the US Department of the Treasury. You may be required to enter personal information including your name, US home address, social security number, state ID number and bank account information.

An email address and password is also necessary for your account. When you entered all necessary information, you have to confirm your email on your account information.

Log in to your Treasury Direct account and choose a bond you want to buy. You have options to purchase either a Series EE or Series I bonds. You have a $25 fee for a minimum purchase and can purchase the bonds in any amount. You will then receive the transferred amount in your account one business day after.

Manage online savings bond

In case you want to buy the savings bond for someone else, you can also manage it on your account. You can buy your savings bonds as a gift or you can use it in the future for educational plans for your children.

You can turn paper saving bonds too into electronic bonds through “Smart Exchange”.

Ask help from online bond broker

If you are not sure about getting bonds online, you can ask assistance from brokers who specialize in bond trading. There are several online brokerage firms that allows you to sell bonds too and not just buy one.

Yet, some firms ask for a mark-up fee for bonds. If you go for broker assistance, just make sure you are willing to pay fees that might be a little higher. If you are not up for it, you can just go directly to treasurydirect.gov since it is free compared to going to online firms.