Please explain the Advantages and Disadvantages of U.S. Savings Bond
Thanks
2007-05-02 08:03:16 · 6 answers · asked by John 4 in Business & Finance ➔ Investing
Advantage: Low risk. The only way you won't get paid is if the U.S. goes bankrupt.
Disadvantage: Low rate. You are better off getting a CD or buying a stock.
Good Luck.
2007-05-02 08:12:01 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Well, it really depends on what it is you are comparing them to. There are two types of savings bonds currently being offered for purchase. There is the EE bond and the I bond. the EE bond you purchase for half the face value of the bond and currently takes 18 years to mature to the full face value. It will gain interest for up to 30 years with a fixed rate of return. There is a penalty if cashed before 5 years, but can be cashed a year after purchase. The I bonds are purchased at face value and gain interest up to 30 years. The I bonds also have an early redemption penalty and can be cashed a year after purchase. The I bond I has an annual interest rate. It has a combined fixed rate and a semiannual inflation rate. the advantages to a bond are really dependent on what you want to do with your money and what you are comparing it to. The current interest rate on a bond are most of the time better than that of a savings or checking account at a bank, and a great alternative to a Certificate of Deposit (CD) (Can save a smaller amount with a better interest rate.) I hope I could be of some help. You can find more info with better interest rate info. and penalty guidelines, as well as purchase methods and amounts at www.savingsbonds.gov.
2007-05-02 08:24:45 · answer #2 · answered by ninabeanas 3 · 1⤊ 0⤋
Advantages: Good weather year round, diversity, diversity in things to do, diversity in food. Disadvantages: Traffic, illegal aliens, houses too close to each other barely any privacy, very expensive, you have to be a millionaire to enjoy living here after all bill are paid.
2016-05-18 23:42:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No advantages over bank savings a/c and less flexible.
Keep life simple. Only have one savings a/c and shares or MF
2007-05-02 10:38:38 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Major advantage...safety/no risk
Major disadvantage...return/pretty low
It's the same ol same ol...risk and return are inversely related.
2007-05-02 08:20:56 · answer #5 · answered by homerunhitter 4 · 1⤊ 0⤋
super low interest rates.
2007-05-02 08:40:47 · answer #6 · answered by Anonymous · 0⤊ 0⤋