BROWSE

Savings Bond Plan

What is 'Savings Bond Plan'

A program that allows employees to purchase U.S. savings bonds, such as the Series EE and Series I bonds, through payroll deductions. Money is set aside from each paycheck, and when enough money has accumulated, the company purchases a savings bond on the employee's behalf. Paper bonds are mailed directly to employees from the government, or are mailed to the employee's company for distribution. The plan may only be available to certain employees, such as those who work for the company full time.

Explaining 'Savings Bond Plan'

Series EE paper bonds can be purchased in denominations of $50, $75, $100, $200, $500, $1,000, $5,000 or $10,000 and can be purchased for half of their face value (i.e. a $10,000 EE bond costs $5,000). Series I bonds can be purchased in denominations of $50, $75, $100, $200, $500, $1,000 or $5,000 with a purchase price equal to the denomination. Bonds may be registered to a single owner, co-owners or a single owner with a single beneficiary who will receive the bond upon the bondholder's death.


Further Reading


Financial literacy and retirement planning: New evidence from the Rand American Life Panel
papers.ssrn.com [PDF]
… enhancing retirement planning and saving decisions. In what follows, therefore, we draw on a … (i) Savings accounts, (ii) Bonds, (iii) Stocks; (iv) DK; (v) Refuse … In particular, these results exclude the most difficult question about bond pricing, which means that the new financial …

Financial literacy and retirement planning in the NetherlandsFinancial literacy and retirement planning in the Netherlands
www.sciencedirect.com [PDF]
… enhancing retirement planning and saving decisions. In what follows, therefore, we draw on a … (i) Savings accounts, (ii) Bonds, (iii) Stocks; (iv) DK; (v) Refuse … In particular, these results exclude the most difficult question about bond pricing, which means that the new financial …

How ordinary consumers make complex economic decisions: Financial literacy and retirement readinessHow ordinary consumers make complex economic decisions: Financial literacy and retirement readiness
www.worldscientific.com [PDF]
… enhancing retirement planning and saving decisions. In what follows, therefore, we draw on a … (i) Savings accounts, (ii) Bonds, (iii) Stocks; (iv) DK; (v) Refuse … In particular, these results exclude the most difficult question about bond pricing, which means that the new financial …

Financial literacy, retirement planning and household wealthFinancial literacy, retirement planning and household wealth
academic.oup.com [PDF]
… enhancing retirement planning and saving decisions. In what follows, therefore, we draw on a … (i) Savings accounts, (ii) Bonds, (iii) Stocks; (iv) DK; (v) Refuse … In particular, these results exclude the most difficult question about bond pricing, which means that the new financial …

Naive diversification strategies in defined contribution saving plansNaive diversification strategies in defined contribution saving plans
www.aeaweb.org [PDF]
… enhancing retirement planning and saving decisions. In what follows, therefore, we draw on a … (i) Savings accounts, (ii) Bonds, (iii) Stocks; (iv) DK; (v) Refuse … In particular, these results exclude the most difficult question about bond pricing, which means that the new financial …

Just keep my money! Supporting tax-time savings with US savings bondsJust keep my money! Supporting tax-time savings with US savings bonds
www.aeaweb.org [PDF]
… enhancing retirement planning and saving decisions. In what follows, therefore, we draw on a … (i) Savings accounts, (ii) Bonds, (iii) Stocks; (iv) DK; (v) Refuse … In particular, these results exclude the most difficult question about bond pricing, which means that the new financial …

Financial literacy and planning: Implications for retirement wellbeingFinancial literacy and planning: Implications for retirement wellbeing
www.nber.org [PDF]
… enhancing retirement planning and saving decisions. In what follows, therefore, we draw on a … (i) Savings accounts, (ii) Bonds, (iii) Stocks; (iv) DK; (v) Refuse … In particular, these results exclude the most difficult question about bond pricing, which means that the new financial …

Household saving behavior: The role of financial literacy, information, and financial education programsHousehold saving behavior: The role of financial literacy, information, and financial education programs
www.nber.org [PDF]
… enhancing retirement planning and saving decisions. In what follows, therefore, we draw on a … (i) Savings accounts, (ii) Bonds, (iii) Stocks; (iv) DK; (v) Refuse … In particular, these results exclude the most difficult question about bond pricing, which means that the new financial …



Q&A About Savings Bond Plan


What is a bond?

A bond is an instrument of indebtedness issued by the issuer to the holders.

What does negotiable mean in this context?

Negotiable means that once the transfer agents at the bank medallion stamp it, it is highly market liquid.

What are the most common types of bonds?

The most common types of bonds include municipal bonds and corporate bonds.

How does a company participate in the plan?

Money is set aside from each paycheck, and when enough money has accumulated, the company purchases a savings bond on the employee's behalf.

What are paper bonds?

Paper bonds are mailed directly to employees from the government, or are mailed to the employee's company for distribution.

Who can participate in this plan?

Only certain employees may be eligible for this plan, such as those who work for the company full time.

Are there other kinds of bonds besides municipal and corporate ones?

Yes, there are other kinds including mutual fund or private investing where a person would give a loan to a company or government.

Are there any restrictions on purchasing these bonds through payroll deduction plans ?

Yes there are restrictions . For example you cannot buy more than one bond per month and you must wait at least 12 months between purchases .

What is the Savings Bond Plan?

The Savings Bond Plan allows employees to purchase U.S. savings bonds through payroll deductions.

Can you redeem your savings bond before maturity ?

Yes but only if it has been held for five years and if it has not yet reached its final maturity date .

What denominations of Series EE paper bonds can be purchased through this program?

Bonds may be purchased in denominations of 5, 75, 1, 2, 5, 1,, 5 or 1 with a purchase price equal to half of their face value (i.e., a $1 bond costs 50 cents). In addition Series I paper bonds can be purchased in denominations of 5 ,75 ,1 ,2 ,5 ,1 or 5 with a purchase price equal to their denomination . Bonds may be registered to single owner co-owners or single owner with beneficiary who will receive bond upon death .

When do you have access to your funds after purchasing your savings bond ?

You have immediate access to your funds once they have been deposited into your account .

Leave a Reply

Your email address will not be published. Required fields are marked *