Savings Bonds Frequently Asked Questions

Savings bonds? Where can I buy them?
What are some of the differences types of savings bonds?
What is the Education Savings Bond Program?
What is consequence if I cash my savings bonds during the first 5 years?
Who may own savings bonds and how can they be registered?
How long will my savings bonds earn interest?
How do I buy savings bonds for education?
How is the interest earned from US savings bonds taxed?
What is a mutual fund?
What are a mutual fund's net assets?
What is a mutual fund portfolio?
How are mutual funds classified?
Do you allow for mutual funds investing online?
Mutual funds online investing? Is that what save252.com provides?
Is save252.com an automatic investing brokerage account?
Drip investing. Is save 252 a drip investing plan?

Savings bonds? Where can I buy them?

Savings bonds can be bought at most financial institutions (banks, credit unions, savings and loans) or through a payroll savings plan. Save252.com does not offer savings bonds.

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What are some of the differences types of savings bonds?

Savings Bonds differ primarily in interest payments and value, denominations, and price.

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What is the Education Savings Bond Program?
Qualified taxpayers may be capable to exclude all or part of the interest earned from eligible EE and I Bonds issued after 1989 when paying qualified higher education expenses. Bonds must be issued in the name of a tax payer age 24 or older at the time of issuance. Other restrictions and income limits apply.

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What is consequence if I cash my savings bonds during the first 5 years?
You will pay a small penalty depending on the savings bonds.

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Who may own savings bonds and how can they be registered?

U.S. citizens and most permanent U.S. residents may register the ownership as single, co-ownership, or beneficiary.

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How long will my savings bonds earn interest?

Depending on the kind of bond, they earn interest for as long as 20 or 30 years. If a savings bond is no longer earning interest, you should cash it.

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How do I buy savings bonds for education?

You may be able to completely or partially rule out from Federal income taxes some interest from bonds when you use the interest to pay for higher education.

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US Savings bonds as gifts?
Check for the details at most local financial institutions (such as banks or credit unions).

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How is the interest earned from US savings bonds taxed?

In common, interest earned from savings bonds is subject to Federal income tax, but not state or local taxes.

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What is a mutual fund?

A mutual fund is a group of money contributed by persons who have similar financial goals. The money collected is then invested in many securities such as equities, debentures/bonds and/or money market instruments.

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What are a mutual fund's net assets?

The mutual fund's net asset value is equal to its cash and securities less its liabilities or obligations.

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What is a mutual fund portfolio?

A pool of securities held by the mutual fund. A portfolio could be a combination of stocks, bonds and cash.

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How are mutual funds classified?

Mutual Funds can be classified into the following three broad categories:
1. Portfolio classification
2. Functional classification
3. Geographical classification

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Do you allow for mutual funds investing online?

Yes our system will allow you to withdraw money automatically from your savings account and invest in mutual funds online.

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Mutual funds online investing? Is that what save252.com provides?

Save252.com is a program that allows you to withdraw and invest in mutual funds specific amounts of money based on a schedule you determine. You can decide to make investments every week or even every day. The money is automatically withdrawn from your bank account and is then invested into mutual funds you choose.

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Is save252.com an automatic investing brokerage account?

Many people call our program an automatic investing brokerage account. However, you are not able to buy individual stocks or other securities. The money that is automatically withdrawn from your savings account is put into mutual funds of your choice.

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Drip investing. Is save 252 a drip investing plan?

Many people refer to us as a drip investing plan because of how we are able to withdraw set amounts of money from an account based on a schedule and invest it into mutual funds online.

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