How to Buy a Savings Bond
Posted on April 21st, 2009 by Paul
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A savings bond is among the most secure investments available. Its monetary value can only be claimed upon its maturity, which protects you from spending your allocated funds. It is also a good gift for kids, with the bond’s maturity date often set at the time of their high school graduation. Purchasing a savings bond is easy. You just have to apply for one in a bank that offers them.
Step 1: Search for a Bank that Issues Savings Bonds
Traveling from one bank to another is rather tiring. Good thing the internet has practically eliminated transportation when inquiring about banking features. Go to the websites of your local banks to get their hotline numbers. Call your most trusted banks and inquire about savings bonds. If one of them offers the bonds, proceed to the nearest branch to formally place your application.
Step 2: Bring the Purchase Requirements
Just like with any initial transaction, the bank officer needs to view or collect documents for identification and verification, some of which will be stored in the bank’s records. You need to present the following when purchasing a savings bond:
- Social Security Number
- Name of the bond’s recipient
- Purpose for buying the bond
- IDs
- Personal information
Some institutions may require you present supplementary documents regarding your bank account. Just clarify the requirements with the bank officer when you make the phone-in inquiry.
Step 3: Arrange the Payment
Pay the bank officer the amount assigned to the bond. Sometimes they are offered at half the face value, which is a real bargain. Your payment can come in the form of cash, check, or deduction from your bank account.
Step 4: Issue the Bond to the Recipient
Savings bonds, being representations of cash, are best delivered personally, especially if it amounts to hundreds or thousands of dollars. You can’t risk it being delivered by a third party. Advise the recipient to take note of the bond’s maturity date. It might be forgotten if it will mature several years from now.
These four simple steps apply for most, if not all, banks that offer savings bonds. Use them to get a fix on secure monetary investments.
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