What is a US Treasure Savings Bond? Well, you can use these bonds to pay off your education debt, give it to someone as a gift, or save on a government product. Savings bonds can be used to earn interest rates or about 30 years.
Although, savings bonds aren’t used that much in today’s age, they are still very useful when you want to save. In this bank guide, you’ll be able to see how you can use a US Treasury Savings Bond as a gift for someone special.
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Purchasing a Savings Bond
Buying a savings bond, first you must have access to your Treasury Direct account. Then, click on “Buy Direct” and it will lead you to another webpage where you’ll be able to purchase one. Be sure that you have your recipients full legal name, Taxpayer ID, or Social Security Number so you can put these bonds under their name. If you want to give the bonds to your recipient and have them delivered electronically, just have their account number ready.
After that, pick Series EE and put in all of your recipients information in the application and check the “This is a gift” box. Then just select an amount you would want to put into this persons account, the funding source, and a purchase frequency. This will let the account know where it will be getting the money from, how much is being put in, and how often money will be deposited into the account.
Finally, when you’re done with the application process, make sure that you look over everything again to see if there are any mistakes you might have made. Once you’re done reviewing all of the information again, you can then submit your form. You’ll receive your savings bond in your account the day after you’ve bought it. However, you won’t be able to send your bond to your recipient for 5 days to confirm the funding. ACH will take them about 5 days. Keep in mind if this person is a minor, they will need another account connected with their guardian.
Gifting the Savings Bond
Once the five days of waiting for the confirmations of your order is over, you’re then able to send it to your recipient. Just sign into your Treasury Direct account and go to the “Gift Box” link in the menu. Then pick the bond that you’ve made to send as a present and click “Submit.” After you’ve submitted it, click on “Deliver” and put in the treasury account information to send it. You’ll have the option of having all of it, or some of it delivered and click “Submit” one more time for it to be sent out.
This is a great option that parents and other guardians should consider getting for their kids. Using a savings bond will help your child accumulate money for the next 30 years when they need it. Investing into their account will enable them to be able to: pay for college, go on a trip, and overall, have money saved on the side for emergencies. By the time 30 years has gone by, they will have lots of money saved and will have gained a fixed interest on their account as well.
Why You Should Get a Savings Bond
Savings bonds are “non-marketable” and can’t be traded on a secondary account at all. Being a minor doesn’t stop them from being able to own a savings bonds account, and it’s always a great idea to save money. When you purchase a savings bond, it will appear as a loan to the government. After 12 months has passed after getting the savings bond, you’ll be able to redeem it for their face values and the interest. However, keep in mind if you’ve redeemed the account before it’s 5 years old, you will be exempt from gaining the last 3 months of interest.
There are two types of bonds that they will have to offer, Series EE and Series I. If you get Series EE bonds, it will gain you a fixed interest rate, while Series I will earn you a fixed rate of return. I would recommend getting Series EE if you plan on giving this savings bond to someone else since they’re able to double in value.
You can also buy a digital savings bond through the TreasuryDirect website. It’s the same as buying the other bond options as a gift. It’s just as safe and secure and is operated by the U.S. Department of the Treasury. Once you’ve gotten the account bond, you’ll be able to send it to your recipient and print out the gift certificate and give it to them as well.
Conclusion
Overall, it’s not a bad idea to get a savings bond gift for someone. When you purchase a savings bond, you’ll be helping them build their interest, save money, and teach them how to be responsible for their account. These accounts can last for about 30 years and you’ll be able to redeem the account whenever you want to.
Gifting a savings bond has no downside to it, and it will be very beneficial to the recipient in the long run for when that person needs the money.
