Millions of Americans get a refund on their taxes each year. If you are one of them, why not use part of your refund to save for the future with a Series I Savings Bond from the U.S. Department of the Treasury? You can invest as little as $50 in this affordable, safe and convenient savings option, which can help you meet your long-term savings goals and build a brighter future.
“Tax season can be a great time of year to build savings,” says Jerry Kelly, national director of the Treasury Department’s Ready.Save.Grow. campaign. “I encourage anyone who is due a tax refund to consider using part or all of their refund to grow their savings with U.S. Savings Bonds.”
If you would like to buy a savings bond with your tax refund, follow these steps:
Why Series I Savings Bonds?
Series I Savings Bonds currently offer an interest rate of 1.38 percent, and they’re exempt from state and local income taxes. What’s more, interest earnings may be exempt from federal income taxes when the earnings are used to pay for qualified higher education expenses.
I Bonds are long-term savings instruments that can help you save for a home, retirement, college tuition or other life goals. You must hold an I Bond for at least one year after it's issued, but it’s best to hold it for at least five years to avoid any early redemption penalty. To learn more about the value of savings bonds, the Treasury Department’s Savings Bonds Calculator will come in handy.
Save With Savings Bonds Year-Round
U.S. Savings Bonds are a good investment at tax time – or anytime. Payroll direct deposit through your employer is a convenient option for building a regular savings habit. Every pay day you can automatically contribute to your TreasuryDirect account and build your nest egg. To learn more about payroll direct deposit and Treasury securities, go to the Ready.Save.Grow. website at www.treasurydirect.gov/readysavegrow.
The preceding information was provided by the U.S. Department of the Treasury, Bureau of the Fiscal Service. TreasuryDirect is a registered mark of the U.S. Department of the Treasury.
Ready.Save.Grow. is a service mark of the U.S. Department of the Treasury.