To buy a $50 savings bond, it costs exactly $50.
Understanding Series EE Savings Bonds
Series EE U.S. Savings Bonds are a popular type of savings security designed to help individuals save money over time. These bonds are unique in that they are sold at their face value. This means that the amount you pay upfront is the same as the bond's stated value. For instance, if you wish to purchase a $50 bond, you will pay $50. The bond then increases in value over time as it accrues interest, reaching its full potential as it matures.
Key Features and Purchase Information
When considering the purchase of Series EE Savings Bonds, it's beneficial to understand their core characteristics and the rules governing their acquisition.
Here are some important details:
- Appreciation-Type Security: Series EE bonds are classified as appreciation-type or accrual-type securities. This means that the interest earned is compounded and added to the bond's principal value, rather than being paid out regularly. You receive the total accumulated value, including all accrued interest, when the bond is redeemed.
- Purchase Price: The purchase price is always equivalent to the bond's face value. Whether it's a $50 bond, a $100 bond, or a $1,000 bond, the cost to buy it is precisely its face value.
- Purchase Limits: Individuals can purchase a maximum of $10,000 worth of Series EE bonds electronically in a single calendar year. There is an overall limit of $20,000 for all series of savings bonds purchased by an individual within a calendar year.
For more comprehensive information on U.S. Savings Bonds, you can refer to official government resources such as Investor.gov.
