Every now and then you have to go a little old school. And that is today’s gift idea.
United States Treasuries!
Investing in U.S. Treasuries use to be a very traditional investment and a very popular gift for individuals. President Franklin D. Roosevelt signed legislation creating the first “baby bond,” in 1935; enabling Americans to save money and participate in government financing at the same time. Since then there have been a variety of ways to invest in the United States and many older bonds continue to earn interest. But now the EE and the I bonds are the only bonds available for purchase. Before we get into the EE and the I bonds let’s take a quick look at other United States Treasuries.
Treasury Bills – are short-term government securities with maturities ranging from a few days to 52 weeks. Bills are sold at a discount from their face value.
Treasury Notes – are government securities that are issued with maturities of 2, 3, 5, 7, and 10 years and pay interest every six months
Treasury Bonds – pay interest every six months and mature in 30 years
Treasury Inflation-Protected Securities (TIPS) are marketable securities whose principal is adjusted by changes in the Consumer Price Index. TIPS pay interest every six months and are issued with maturities of 5, 10, and 30 years.
Now for our gift of the day; the I and the EE bonds, both are available on http://www.treasurydirect.gov. and can be issued either by paper method or electronic version.
I Bond
Ownership term 1 to 30 years
Minimum purchase $25; Maximum $5000
Bonds have an annual interest rate that reflects the combined effects of a fixed rate and a semiannual inflation rate. They are an accrual-type security. Interest, if any, is added to the bond monthly and is paid when you cash the bond.
EE Bond
Ownership term 1 to 30 years
Minimum purchase $25; Maximum $5000
Bonds issued after 2005 have a fixed interest rate and are an accrual-type security, which means interest is added to the bond monthly and paid when you cash in the bond.
I hope this helps with your shopping ideas.