Possible time for investing in savings bonds within your financial portfolio
Federal employees now have a convenient way to manage their investments in one place, thanks to the user-friendly TreasuryDirect program. This platform, available at TreasuryDirect.gov, allows federal workers to purchase and manage U.S. savings bonds online.
To get started, employees simply need to create an account. After setting up the account, they can buy electronic Series EE and Series I bonds starting from $25, with an annual limit of $10,000 per individual. They can manage their bonds by viewing holdings, setting up future purchases, and accessing transaction history directly within their TreasuryDirect account.
Purchasing bonds is straightforward. Employees log in to TreasuryDirect, select the type of bond, and complete the purchase with funds from their bank account. They may also reissue paper bonds into electronic form using TreasuryDirect by submitting a form.
Management through TreasuryDirect includes the ability to track bond value, redeem bonds when eligible, and add beneficiaries or secondary owners once bonds are in electronic form.
Advantages for federal employees include the inflation-adjusted interest of I Bonds and tax deferral advantages, as these investments exempt them from paying state income tax, with federal tax deferred until redemption.
The platform is designed to be secure, providing easy access to bond management without the need for physical certificates. It also keeps a paperless trail of all transactions made on the platform. When treasury notes or bills mature on the TreasuryDirect website, the money automatically goes back to the linked banking account.
Federal employees will only have to pay federal income tax on T-bills and T-notes. There are no limitations on how much they can purchase in these types of bonds.
Savings bonds can be a useful tool for saving for emergencies, such as a potential federal furlough. The TreasuryDirect program offers a diverse range of investment vehicles, including T-bills, T-notes, EE bonds, and I bonds.
Abe Grungold, a retired federal manager and owner of AG Financial Services, encourages federal employees to invest on the TreasuryDirect website. He recommends it as a secure and informative platform for purchasing treasury bonds.
[1] TreasuryDirect.gov, "How to Buy Savings Bonds," accessed April 10, 2023. [2] TreasuryDirect.gov, "TreasuryDirect: Secure and Easy to Use," accessed April 10, 2023. [3] TreasuryDirect.gov, "Tax Information for TreasuryDirect Customers," accessed April 10, 2023. [4] TreasuryDirect.gov, "Manage Your Savings Bonds," accessed April 10, 2023.
Federal employees can reimagine their personal-finance management by leveraging the TreasuryDirect workforce, a secure and user-friendly platform that allows them to invest in various financial instruments such as U.S. savings bonds, T-bills, T-notes, EE bonds, and I bonds. By managing their bonds electronically, they can track their bond value, set up future purchases, and access transaction history, all while taking advantage of benefits like inflation-adjusted interest on I Bonds and tax deferral advantages.
