Finding The Relevant Bond Information

By | October 19, 2013

Getting the right bond for you is essential and this guide will help you through the different options that are available. It is a great way to invest money but sometimes picking the right bond for you can be difficult. There are so many different options to choose from and knowing which one is the best for your situation isn’t going to be easy.

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EE Savings bond

It is possible that the  is going to be the right option for you. This bond is open to US citizens and you need a Treasury direct account. The bond lasts for 30 years but you can cash it in after a year. The minimum that you can invest is $25 up to $10,000 per year. These are all issued as electronic certificates, which is why you need to open an account.

Municipal bond

These bonds you can buy and sell during their life time. They are not restricted to one person. They pay out coupons twice per year. They are slightly higher risk option but less so than a corporate bond.

I savings bond

These bonds are very similar to the EE bond, they are also purchased through the treasury but you can still buy the paper versions of this bond as well as the electric option. This is a non-transferable bond and also has a thirty year life span.

Corporate bonds

These bonds can be a high risk option, but they will have a higher coupon rate because of this. There are some corporate bonds that have a higher risk are often referred to as junk bonds.

Children’s bonds

It is possible to give bonds to children; it is a great way for them to start investing early. You will need to make sure that their guardian has a Treasury direct account because they will hold them in a minor linked account until the child reaches 18.

Gilt Bonds

The gilt bond is a bond that is issued by the UK government and it is a low risk option. The interest rate is depicted when the bond is raised along with the maturity date. They are a transferable bond and this means that you are able to buy and sell the bond.

Bonds

It is important that you know and understand the bonds on the market, finding the right one for you will help with your growing money.

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