Best Savings Bonds to Buy in September 2024

Savings bonds are a secure investment option offered by the U.S. Treasury, primarily in two forms: Series I and Series EE bonds. Series I bonds are designed to protect against inflation, with interest rates that vary based on inflation rates, making them suitable for those looking to maintain purchasing power. However, the interest rate can fluctuate, posing a risk if rates drop. In contrast, Series EE bonds provide a fixed interest rate of 2.70% for the first 20 years, ensuring that the investment will double in value over that period, which is a unique guarantee not offered by Series I bonds. Investors can cash out Series EE bonds after 12 months, but they will forfeit three months of interest if they redeem them before five years. These bonds must be registered to the investor, who must be at least 24 years old at the time of issuance. This makes them a viable option for parents saving for their children's education, as long as the bonds are registered in their names. While savings bonds are considered one of the safest investment vehicles due to government backing, they may not be the best choice for those needing quick access to funds, as there is a minimum holding period. For long-term savings goals, such as retirement, investors might find better returns in the stock market. Ultimately, the choice between Series I and Series EE bonds depends on individual financial goals, investment timelines, and expectations regarding inflation. Understanding these factors is crucial for making informed investment decisions.