Bonds and Treasuries

The personal savings rate has not increased in the United States since 1980. During the early 1970's the savings rate was often in excess of 12.5 percent but dipped as low as 2.5 percent in 2000 and 2008. After the financial crisis of 2008 the savings rate briefly spiked to over 7.5 percent but has since declined to a current rate of about 4.0 percent.

The reasons for the large decline in savings has been the subject of debate and study by economists. Some of the reasons why Americans find it so hard to save may be due to a higher cost of living and the lack of wage growth but the net result is that many Americans are in a perilous financial situation due to the inability to save. Recent surveys show that as many as 40 percent of Americans could not come up with as little as $2,000 in an emergency.

Tax reduction and diversification of investment are the benefits of the firms issuing bonds offshore.

An investor earns money when buying bonds at a discount by receiving interest payments, known as coupon payments, which are typically based on the bond's face value. Additionally, if the investor holds the bond until maturity, they will receive the full face value of the bond, resulting in a capital gain since they purchased it for less than its face value. The difference between the purchase price and the face value, along with the interest payments, contributes to the overall return on investment.

To reissue a lost savings bond, you need to contact The Bureau of Fiscal Service . You will need the serial number of the savings bond; if that is not available you will need the social security number of the person who's name is it in, the specific month and year of purchase, the name of the person it was for ( first, last and middle name or initial), and your address.

Savings bonds can only be bought from the US Treasury. See link below for the Treasury's web page explaining about buying savings bonds.

A person can learn about the attractive yields a corporate bond can bring when obtaining information about corporate bonds. Another benefit of investing in a corporate bond is the diversity that is involved in this type of bond.

The leading rating agencies give a rating when a bond is first issued, and that rating determines how high the interest rate on that bond is. A higher rating means the bond will have a lower interest rate.

Corporate Bond yields are the amount of return over a period that a bond will return. A good yield for a corporate bond is between 4 and 8 percent although in the current climate this may dip a little

In order to find information on cashing in savings bonds, one can look up Treasury Direct. It is a government website that can assist you in transferring savings bonds into your bank account.

The benefits of callable bonds is that they are protected in the fact if interest rates drop, which is especially important if one purchases bonds for a long term period.

The term corporate bond funds refers to a type of investment where the funds all come from corporate bonds. With the word bond in the name, it gives the impression that this would be a very safe choice for an investment. In fact this type of investment can be far more risky than stocks.

Talking to one's stock investment company can lead one to gaining more information on what bonds are as well as the processes behind purchasing the bonds themselves. Bonds are stock investments that allow individuals to own a percentage of a company.

A bearer bond is usually issued by a corporation or by a government. No records are kept of who has purchased a bond. Therefore it is very difficult to prove ownership if the bond is lost or stolen.

In order to determine the value of the bond in question, it is necessary to provide both the issue date and the denomination of the savings bond. For example, a Series E savings bond issued in 06/1980 with a denomination of $100 would be worth $447.00 as of July 2013. In this example, the E Bond reached maturity after 30 years and no longer accrues interest.

A convertible bond is issued by financial institutions. It differs from standard bonds in that it can be converted into company stock. The purpose of this is to provide additional security for the customer.

The term CUSIP means a Committee on Uniform Securities Identification Procedure. It is a number needed for security reasons, such as bonds of the American government and the stocks of the American companies.

Examine the bond carefully. Some bonds have the value printed on them. If the bond has reached its full maturity, this is the value of your bond. If there is no value on it, you can take it to a bond specialist and have it appraised.

The NS&I Premium Bonds is a lottery bond issued by the United Kingdom. Premium Bonds was introduced by Harold Macmillan in the year 1956 and provides instead of paying the interest to a bond, it pays with a prize fund from which a monthly lottery distributes tax-free prices.

The Bloomberg web site has excellent information on current Treasury Bond rates under its Market Data/Rates and Bonds link. TreasuryDirect is also an excellent web site that gives an in depth explanation about treasury bonds.

High yield corporate bonds are issued by organizations that do not qualify for investment-grade ratings by credit rating agencies. These bonds are sold to raise capital for various purposes. The issuer agrees to pay interest and also return the face value of the bond.

The income return on an investment. This refers to the interest or dividends received from a security and is usually expressed annually as a percentage based on the investment's cost, its current market value or its face value.

Premium Bonds are lottery bonds issued in the United Kingdom where the bondholders are paid dividends via a random, monthly drawing. Recent winners of the Premium Bond Lottery appear on the National Savings and Investment Agency's website and past winners can be found on The London Gazette's website by searching for the keyword "unclaimed prizes".

High Yield Savings Bond describes bonds that have high rates of return. These bonds are usually ranked low as they have a higher chance of defaulting.