bond, us savings definition
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What is a Saving Bond? US Savings Bonds are non-marketable securities meaning you cannot buy or sell them unless you are an authorized issuing and redeeming agent designated by The US Treasury Department. They are also considered a registered security-which means that the person or persons named on the bond owns them.
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Bond (finance) Thus a bond is a form of loan or IOU: the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure.
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Bond (finance) In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date.
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Bond (finance) In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. It is a debt security, under which the issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay them interest (the coupon) and/or to repay the principal at a later date, termed the maturity date. War bond is a bond issued by a country to fund a war. 2  Serial bond is a bond that matures in instalments over a period of time. 3  In effect, a $100,000, 5-year serial bond would mature in a $20,000 annuity over a 5-year interval.
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Municipal bond A municipal bond is a bond issued by a local government, or their agencies. The term municipal bond is commonly used in the United States, which has the largest market of such trade-able securities in the world estimated at $3.7 Trillion in 2011.
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Bond (finance) In finance, a bond is an instrument of indebtedness of the bond issuer to the holders. The most common types of bonds include municipal bonds and corporate bonds.
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Are U.S. Savings Bonds Taxable on State Returns? Deferred Federal Taxes. The interest rates for savings bonds are adjusted twice a year, in May and November. Although the interest is earned and added to the value of the bond holder's account continuously, this earned income is not taxable until a bond is redeemed.
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How to Redeem Double H Bonds Series HH U.S. Savings Bonds are a variable rate 20-year paper savings bond last issued in September 2004. With these current-income bonds, the initial interest rate is reset to market rates after 10 years. Interest is paid to the bond owner every six months by check or direct deposit. These bonds must be redeemed by the U.S. Treasury, not paid by your bank. Redemption means the owner will receive the purchase price of the bond.
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Frequently Asked Questions An I Bond is an accrual-type security with interest added to the bond monthly and paid when the bond is redeemed. The I bond interest rate is based upon a combination of a fixed rate of return and a variable semiannual rate. I bonds grow in value with inflation-indexed earnings for up to 30 years.
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United States Treasury security Savings bonds were created to finance World War I, and were originally called Liberty Bonds. Unlike Treasury Bonds, they are not marketable. In 2002, the Treasury Department started changing the savings bond program by lowering interest rates and closing its marketing offices.
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- Bonds A bond is any interest-bearing or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principle amount of the loan at maturity.
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Social Security (United States) Backed by the US government, savings bonds are extremely safe. But a tradeoff for that safety is a relatively low rate of return. New series EE and I bond rates are announced every six months. If you redeem savings bonds within the first five years, you’ll be penalized a certain amount of interest.
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Bond fund A bond fund or debt fund is a fund that invests in bonds, or other debt securities. Bond funds can be contrasted with stock funds and money funds. Bond funds typically pay periodic dividends that include interest payments on the fund's underlying securities plus periodic realized capital appreciation. Bond funds typically pay higher dividends than CDs and money market accounts. Most bond funds pay out dividends more frequently than individual bonds.
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depository institution Definition. Bank, building society, credit union, or other financial institution that solicits and accepts savings of the general public as demand deposits or time deposits, and pays a fixed or variable rate of interest. Also called savings association, savings institution and thrift institution.
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The Sad Story of Savings Bonds U.S. Savings bonds have had a long and storied history, starting with Series A-D bonds, offered during the depression to give people an incentive to save safely. The Series E bond was launched on April 30, 1941 by President Roosevelt as a way of funding World War II.
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Frequently Asked Questions Regarding U.S. Savings Bonds The savings bond account number is the three digits located on the lower, right side of the U.S. Savings bond, next to CA#. The date you purchased your Series EE savings bonds will determine how the interest rate is calculated. This information can be found on the TreasuryDirect Treasury Securities & Programs website.
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Bond Definition: Related Terms: Surety Bond, Performance Bond, Surety, Stock, Security, Share A written promise of one person to do something or to pay a sum of money to a specified person, on either a certain date or upon the occurrence, or barring the occurrence, of a specified event.
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Definition of Straddle Individual Bonds. A bond is an interest-bearing security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals (known as a coupon), and to repay the principal amount of the loan at maturity.
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Waiver of Bond Law and Legal Definition Waiver of Bond Law and Legal Definition. A bond is an obligation, expressed in writing, to pay a fixed and liquidated sum on the happening or nonoccurence of a specified condition or event.
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Bond Bond Meaning: In British deposit terminology, the term Bond refers to a savings account or certificate of deposit made with a U.K. financial institution that pays a fixed rate of interest until a given maturity date.lso, while the term Bond is in common usage for such certificates of deposit in the United Kingdom, they are also known as term deposits in countries like Australia, Canada and New Zealand, as time deposits in the United States, and as fixed deposits in India and some other countries.
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Sales Tax Frequently Asked Questions Nontransferable bonds, such as U.S. savings bonds, are issued to an individual and can't be transferred to another person.
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Series I Savings Bonds Rates & Terms. 1  I Bonds have an annual interest rate that reflects the combined effects of a fixed rate and a semiannual inflation rate. 2  They are an accrual-type security. 3  Interest, if any, is added to the bond monthly and is paid when you cash the bond. 4  I Bonds are sold at face value; i.e., you pay $50 for a $50 bond.
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The Sad Story of Savings Bonds U.S. Savings bonds have had a long and storied history, starting with Series A-D bonds, offered during the depression to give people an incentive to save safely. The Series E bond was launched on April 30, 1941 by President Roosevelt as a way of funding World War II. Those bonds, sold as a patriotic investment, had an initial 10-year maturity and were sold at a discount to face value (maturing to full value in 10 years). They carried an interest rate of 2.9 percent.
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- Interest on U.S. treasury bonds and savings bonds is taxable on your federal return, but it's usually tax-free at the state level. And interest on municipal bonds is tax-free at the federal level. Municipal bond interest is also often tax-free at the state level if you invest in a bond that's issued in the same state in which you reside.
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The Sad Story of Savings Bonds A Sad Demise. U.S. Savings bonds have had a long and storied history, starting with Series A-D bonds, offered during the depression to give people an incentive to save safely. The Series E bond was launched on April 30, 1941 by President Roosevelt as a way of funding World War II.
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- Information Navigation. Bonds. A bond is any interest-bearing or discounted government or corporate security that obligates the issuer to pay the bondholder a specified sum of money, usually at specific intervals, and to repay the principle amount of the loan at maturity.