The Benefits of a US Savings Bond

Investing doesn’t always have to mean taking on a ton of risk. In fact, there are a few investment vehicles that while offering a lower return, are also relatively safe and are a great way to “start small.” U.S. Savings Bonds for example, has numerous benefits and little to no risk. What to learn more?

Tax Benefits

If you are looking for a little tax relief, a US Savings bond may be a good investment vehicle for you. When you purchase a federal bond, you do not have to pay state and local taxes on it. You also don’t have to pay taxes on the interest you earn until you withdraw your bond money. This deferred taxation gives bonds an advantage over regular savings accounts and cash on deposit accounts which require you to pay taxes yearly on interest earnings.


Stock investing can be risky. You could make a great deal of money or you could lose everything. Bonds provide security that stocks cannot. A US savings bond is backed by the federal government. The US government is required to pay you back your principal amount and all interest. As long as that government exists, your money is safe. Lending money to the government is as safe a venture as placing your money in an FDIC insured savings account, but you have a chance of receiving better interest earnings.

Long Term Investing

To avoid early withdrawal penalties, US bonds require you to leave your money in for five years. If, however, you decide to leave your money in for longer, you will see much better interest returns on your investment. If you are worried about inflation eating away at the value of your bond, there are special bonds that meet or even exceed the rate of inflation. This allows your long term investment more security than a money market account where inflation can give you negative earnings if you leave your money in too long.

So, how does investing fit into your estate plan? A solid estate plan addresses all your concerns, including meeting your financial goals and providing for your family’s future. To learn more about creating a comprehensive estate plan, consult with a qualified estate planning attorney today.

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