Savings Bonds can be redeemed at Members' Advantage Credit Union.
Series EE Bonds, or "Patriot Bonds" issued with a date of May 2005 or after now earn a fixed rate of interest for the term of the bond. The interest is added to the bond monthly and paid when you cash in the bond. EE Bonds are sold at half their face value, so you pay $25 for a $50 bond. Earnings for EE Bonds are calculated as 90% of six month averages of five year Treasury Securities market yields.
I Bonds earn a guaranteed real rate of return, and are also an accrual-type security. Interest is added to the bond monthly and is paid when you cash the bond. I Bonds are sold at face value, so you pay $50 for a $50 bond. Rates for I Bonds are calculated by combining fixed rates of return and semi-annual inflation rates based on the CPI-U.
Savings Bonds are a safe, low risk investment. They can be purchased as gifts or as a personal investment. Certain taxpayers who use bonds to pay for qualified educational expenses may be able to exclude all or part of the interest earned from EE and I Bonds issued after 1989. Otherwise, bonds are exempt from State and local income taxes, but are subject to State and local estate, inheritance, gift, and other excise taxes, as well as Federal income taxes.
Savings Bonds are an excellent investment for you and for our country. Members’ Advantage Credit Union is pleased to be able to offer this service to our members. We hope you find it a convenient way to begin or add to your investment portfolio.
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