How To Purchase Savings Bonds?

For many years, one of the more popular choices for gifting money to a young person has been savings bonds. People love them because they're easy to buy, can be bought in small denominations and give the child something tangible to hold on to. While savings bonds have given way to UGMAs and 529 accounts as investment vehicles of choice, savings bonds still maintain popularity.

If you're in the market for savings bonds on your own, the options have changed a little over the years but the process remains simple and quick. Your easiest option may still be visiting your local bank.

Most banks both small and large offer you the ability to purchase individual bonds. Go into the bank and tell them you'd like to purchase a savings bond. A representative of the bank will walk you through all the options. There are different types of bonds and each has its own rules and maturity schedule so you'll need to figure out which works best for your situation. It'll probably be helpful to have all the information for the person you're buying the bond for. That includes address and contact information as well as the recipient's social security number.

If you don't want to make the trip down to your bank, you can buy your savings bonds online as well. The Treasury Department has set up a website - www.treasurydirect.gov - where you can purchase savings bonds (and other Treasury products like T-bills) directly. You can purchase your bonds in about 10 minutes. Unlike purchasing bonds at a bank, there is no paper bond issued when you purchase online. All account information and balances are maintained online at the government's website.

While there are a couple more methods of purchasing savings bonds, these two methods continue to be the most used. Regardless of the way you choose to buy bonds, purchasing those remains easy and cheap. With savings bonds, you'll have a gift that a child will enjoy for years to come.