There's no time like today to begin saving to provide for a secure tomorrow. Whether you are saving for a new home, car, vacation, education, retirement, or for a rainy day, U.S. Savings Bonds can help you reach your goals with safety, market-based yields, and tax benefits.
Bonds are easy to buy at KPOCU! We offer Series EE Bonds and I Bonds. You pay no fee or commission. U.S. Bonds are backed by the full faith and credit of the United States. Bonds can be replaced if lost, stolen or destroyed, as long as it can be established that the bonds haven't been cashed or, if cashed, have been paid in error to the wrong person.
Series EE Savings bonds bought today will earn market-based rates for 30 years, but bonds can be cashed anytime after one year. To encourage investors to hold bonds and still keep them one of the most liquid investments around, a 3-month loss of interest will apply to bonds cashed in before five years. You can buy Series EE Savings bonds for a small amount of money - the minimum investment is $25. They cost half their face amount and bonds increase in value every month. The rate changes every six months... so your investment always tracks Treasury market yields.
Series I Savings Bonds can be bought for as little as $50. They guarantee returns over and above inflation for up to 30 years. I Bonds are sold at face value and they are an accrual-type security - meaning interest is added to the bond monthly and paid when the bond is cashed. The earnings rate of an I Bond is a combination of two separate rates: a fixed rate of return and a variable semiannual inflation rate. The fixed rate remains the same throughout the life of the I Bond, while the semiannual rate can vary every six months. There is a limit of $30,000 worth of I Bonds that can be bought by an individual in a calendar year.
U.S. Savings Bonds may provide tax savings when used to finance higher education. Interest earned on U.S. Savings Bonds is exempt from State and local income tax. You can also defer paying Federal Income Tax on the interest until you cash your bond or until it stops earning interest in 30 years.
The money invested in U.S. Savings Bonds directly helps finance our country's borrowing needs. For more information, visit a KPOCU branch. You can download the Savings Bond Wizard at www.savingsbonds.gov to help you manage your savings bond inventory on your personal computer. An online Savings Bonds Calculator is also available.