Easy investment --- I Savings Bonds or EE Savings Bonds

There are several ways to save and invest, there are some that need higher principal, there are others that require higher risk, and there are also those that yield higher return.  But in the income you’re earning now, in the situation you’re in now, in the market condition you’re facing now, and in the plans you’re targeting now, which is the best asset class or investment type should you ride on?  Well, the safest and easiest would be the savings bonds. 

Since there are two types of savings bonds, the I Savings Bonds and the EE Savings Bonds, it would still be better if you know what each means and how each would benefit you.  This is to ensure that you’re maximizing the full potential of your funds, of the market, and of the tenure.  These are actually the simplest and most applicable to you, especially if you’re not that investment savvy or you’re still starting your investment journey.

The I Bonds are low-risks products, your interest rate is based or determined through inflation, this aims to protect and preserve the purchasing power of your funds.  Minimum purchases go as low as $50 for a $50 paper bond certificate while $25 for a $25 electronic bond certificate.  Its minimum holding period is only 1 year and it can earn interest to as long as 30 years, but it can be redeemed in between those times, although if it’s still below 5 years, it may incur some kind of penalty.

The other one is the EE Savings Bonds series, which replaced the E Bonds series, like the other bond, it’s a safe and low-risk product, but its interest rate is computed differently.  EE Savings Bonds that were purchased before May 2005 will earn a market-based interest rate, which is 90% of the 5-year US Treasury yield average for the past six months, while those EE Savings Bonds purchased after May 2005 will have a fixed rate of return, which are announced every May 1 and Nov 1.  Re-pricing of the EE Savings Bonds happens every six months but its interest accrues every month.  Just like the I Bonds, these EE Savings Bonds continue to earn interest up to 30 years. 

Both I Savings Bonds and EE Savings Bonds are long-term investments, it’s one of the most effective way to save for the future --- whether to finance the children’s college education, retirement income, special events and celebrations like weddings, anniversaries, graduation, etc. 

Now is really the best time to start saving, who knows the next time you wake up, you’re thousands richer already.