| US Saving Bonds |
What is US Saving Bonds?
US Savings bonds are obligations of the US government. Interest paid on these bonds is exempt from state and local income taxes. Savings Bonds are not negotiable instruments, and cannot be transferred to Advertisement anyone at will. They can be transferred in limited circumstances, and there could be tax consequences at the time of transfer. US Savings bonds can be purchased from commercial banks, through an employer via payroll deductions, or (naturally) over the internet. Most commercial banks act as agents for the Treasury; they will let you fill out the purchase forms and forward them to the Treasury. You will receive the bonds in the mail a few weeks later. See the foot of this article for the web site that allows on-line purchases. Savings bonds can be redeemed (cashed in) at many banks or directly with a branch of the Federal Reserve Bank. Using your bank, credit union, or savings and loan is probably the fastest way to cash a bond, but be certain to call ahead to ask (you might need to bring certain documentation). In some cases, the bank may send the bonds to the Fed, which will slow things down. If your bank will not cooperate, contact the appropriate Fed branch to redeem bonds by mail or via the web (see links at the end of this article).
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