United States Savings Bonds
They are considered one of the safest investments because they are backed by the full faith and credit of the United States government.
On April 30, 1941, Roosevelt purchased the first Series E bond from Treasury Secretary Henry Morgenthau Jr.; the next day, they were made available to the public.
Stamps featuring a Minuteman statue design in denominations of 10¢, 25¢, 50¢, $1, and $5 were also sold to be collected in booklets which, when filled, could be exchanged to purchase interest-bearing Series E bonds.
When John F. Kennedy was president, he encouraged Americans to purchase them, which stimulated a large enrollment in savings bonds.
A bond purchased on or after January 1, 1990, is tax-free (subject to income limitations) if used to pay tuition and fees at an eligible institution.
In 2002, the Treasury Department started changing the savings bond program by lowering interest rates and closing its marketing offices.
[3] That year, the Department of the Treasury's Bureau of the Public Debt made savings bonds available for purchasing and redeeming online.
The New York Times reported that the reasons banks gave for this were "the equivalent of 'sorry, we just don’t feel like it.
If a bond's compounded interest does not meet the guaranteed doubling of the purchase price, Treasury will make a one-time adjustment to the maturity value at 20 years, giving it an effective rate of 3.5%.
[8][9][10] The Treasury currently issues Series I bonds electronically in any denomination down to the penny, with a minimum purchase of $25.
Paper bonds as an option for receiving an individual's federal income tax refund will be discontinued January 1, 2025.
[11] The paper bonds were issued in denominations of $50, $100, $200, $500, and $1,000, featuring portraits of Helen Keller, Martin Luther King Jr., Chief Joseph, George C. Marshall, and Albert Einstein, respectively.
Earlier discontinued denominations included $75, $5,000, and $10,000 featuring Hector P. Garcia, Marian Anderson, and Spark Matsunaga.
Treasury has the authority to waive the 12-month holding period for bondholders residing in areas of natural disaster.
"[23] The Treasury began issuing savings bonds in March 1935, with each of the first four series released sequentially without overlap and under similar terms.
Series G bonds were sold at face value and would earn interest paid by check every six months until maturity after 12 years.
Series H was issued at face value and earned interest that was paid every six months until maturity approximately 30 years later.
Each spring, nearly $100,000 was distributed to winners in grades 4 through 6 across all fifty states, District of Columbia, and Puerto Rico.
Winners were chosen by state art councils, the news media, sponsors, and volunteers based on criteria of originality, poster design, and visual appeal.
