US Savings Bonds
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US Savings Bonds are issued to the general citizens through the US Treasury and in fact the individuals who buy these bonds become the creditors of the Government. The citizens buying the US Savings Bonds are relieved from the payment of taxes whether charged by the local or the state authorities. The US Savings Bonds are not similar to most other Bonds which are issued in the Bond Markets by the corporations which are in need of finances. The US Savings Bonds are the liabilities of the Federal Government of the US and therefore these are not issued in the Primary Bond Markets. People can either buy these US Savings Bonds directly from the official website of the US Treasury. These can also be bought from the commercial banks.
Almost every Commercial bank in the US mediates the sale of US Savings Bonds by offering the necessary services to those interested in buying the US Savings Bonds. The price along with the forms filled in by the potential purchasers of the US Savings Bonds are sent to the US Treasury by these Commercial Banks, and the US Savings Bonds arrive within a few days. There are basically two types of US Savings Bonds available to the Potential investors who are interested in investing but are not in favor of taking the high risks involved with purchasing regular or High Yield Bonds from the Primary Bond Markets. Unlike in the case of the regular commercial bonds, the owners of the US Savings Bonds are not free to trade these Bonds owned by them in the Secondary Bond Markets, with the exception of a limited number of cases where the owners are authorized to sell these US Savings Bonds, however with the imposition of taxes.
The US Savings Bonds when registered against an individual or two co-owners, are free to be operated and managed by anyone amongst the registered owners. In case if the Bonds have two co-owners,, the death of one amongst the two automatically results in the surviving co-owners, becoming the sole possessor of the US Savings Bonds. However, when an individual is its registered owner, or rather Primary owner, that person can decide upon a beneficiary who will reap the benefits of the US Savings Bonds upon the death of the Primary owner. Such a beneficiary is then bound to make payments towards interests which are imposed upon the taxes.
The interests which are accumulated by the US Savings Bonds over the years can be redirected to pay up for the higher education expenses which may be incurred by the parents for imparting quality education to their children. An US citizen can buy the US Savings Bonds which are specially designed to finance the higher education of children, but in such cases it would have to be bought in the name of the respective child. Even the choice to start or terminate the service of forwarding the price for the education of the children from the interests accrued by an US Savings Bonds, lies at the sole discretion of the individual consumer.
Only two kinds of US Savings Bonds are offered for sale by the US Treasury on its official website as stated earlier, as well as through the numerous Commercial banks spread across the US. The two US Savings Bonds circulated by the US Treasury are as follows :
As of the present, the US Treasury is continuing with the sales of both of these two types of US Savings Bonds. With different sets of terms and conditions that apply to both,none of these US Savings Bonds are set to be removed from the financial markets by the US Treasury.
In case the US Savings Bonds are misplaced, robbed, spoilt or damaged, the owners are immediately required to notify the same with as much details as possible to the US Department of Treasury, for the US Savings Bonds to be replaced. The details should include the date of issuance of the US Savings Bonds, in addition to the denominations, and the serial numbers of the bonds. The Social Security number of the owner should also be provided to speed up the replacement, more the information that the owner is able to furnish the faster can the US Savings Bonds that can be replaced by the authorities.
