One Year Investment Bonds – Better Than Your Local Bank

Having become disillusioned by the small amount of interest rates that my local bank was paying me, I decided to look for an alternative. Having done a thorough research I settled for One Year Investment Bonds. I also learnt about the risks that are involved in investing in bonds and therefore I decided to diversify my portfolio. Apart from the federal government’s bonds I invested in Blue Chip companies.

After choosing the companies that had a solid financial record over the past few years I visited my local stockbroker to help me make my investment. I was advised to invest in a mutual fund since I did not have enough money to make the initial investment that was required. Some bonds will require on to invest $1000 or even $5000 and these large sums of money do not grow on trees. Some mutual finds specialize in investing in bonds providing bond funds for people with limited budgets like me. I also decided to buy federal government bonds through the Treasury Direct website. I bought these bonds through the internet and without the help of a broker.

These benefits of these bonds are that they are low risk savings and they are easy to convert to cash. They also earn great interest rates enabling me to enjoy a great lifestyle. These bonds are also available in electronic form. I am able to buy, manage and redeem my bonds through the internet. There is also a new program at Treasury Direct known as the Smart Exchange that allows bond owners to convert their paper bonds to electronic securities.

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