A savings bond is described as an IOU from the government. After a certain number of years, the bond can be worth more than what it was purchased for. Series EE Bonds are usually purchased at half the price. I Bonds are purchased at face value and earn higher interest rates each year it is held onto. Bonds and college students Savings bonds can be beneficial to college students.
Bonds earn interest depending on the rate of that year.
For people just beginning careers, particularly those recently out of college, Hollenbach says the Series I bonds are ideal because they are a safe investment and help build stable financial portfolios. Cashing in bonds can also be helpful to the struggling college student. Cashing 'em in Junior Megan Morrisey recently cashed in savings bonds she had receieved as gifts when she was younger. Most of the bonds I cashed in were worth more than what they said because I've had them since 1980. Local banks such as Merchants Bank and Chittenden Bank, both in the Burlington area, sell and cash savings bonds.