(ARA) - They're the same bonds you remember getting as a child, but with a digital twist. U.S. Savings Bonds are making a comeback, just in time for the graduation and wedding gift-giving season.
"Since the January 2012 transition from paper to digital savings bonds, account openings on Treasury's retail website, TreasuryDirect.gov, have increased 9 percent," says Jerry Kelly, national director of the U.S. Department of the Treasury's Ready.Save.Grow. campaign. "In many cases, people are opening an account for themselves as well as their children to give relatives and friends a convenient way to give gifts."
Ready.Save.Grow., a Treasury educational effort to encourage more people to save for their future, provides information on how to open a TreasuryDirect account for you and your children. The campaign also offers these timely tips as you prepare for the upcoming season of graduations, weddings and other gift-giving occasions:
Tip 1: Invest in savings bonds for your child's future by opening a free TreasuryDirect account.
For as little as $25, you can buy a safe and affordable savings bond - a guaranteed investment - for your child. To enable your child to receive savings bond gifts, open a child's account within your own TreasuryDirect account at www.treasurydirect.gov/readysavegrow.
Tip 2: If family or friends offer to help with your child's future education, think savings bonds.
When you think about saving for your children's education, remember that savings bonds offer many advantages, such as:
* Bonds earn interest for up to 30 years.
* The interest earned is exempt from state and local income taxes.
* The interest earned by eligible owners may also be exempt from federal income tax if bond proceeds are used to pay for qualified education expenses. See the TreasuryDirect website for more information on this feature.
Tip 3: Set an example by giving savings bonds to the children of family members or friends.
Start a trend and invest in the future of the kids you know - buy savings bonds in their names. Your family and friends will thank you. To gift a savings bond, you'll need to log in to your TreasuryDirect account to make the transaction. It's important to know the recipient's full name and Social Security number ahead of time so you can complete the gifting process in a few simple steps. Also, be sure to print out a themed gift certificate to include in your card or present.
Tip 4: Encourage your adult son or daughter to list savings bonds on their wedding gift registry.
Even though your son or daughter may be eager to receive new dishes, silverware or linens, a savings bond will be the gift that keeps on giving in the future. When the savings bonds mature, the couple will welcome additional funds for a major purchase, their children's education expenses or as a supplement to their retirement savings.
Tip 5: Use the gift of a savings bond to teach your child about the importance of saving and financial planning.
Receiving a savings bond for the first time is a great way for your children to learn how to take control of their financial future. Use the gift of a savings bond in your child's name as a way to educate him or her on the value of money and help sharpen financial planning skills.
The preceding information was provided by the U.S. Department of the Treasury, Bureau of the Public Debt.
TreasuryDirect is a registered mark of the U.S. Department of the Treasury.
Ready.Save.Grow. is a service mark of the U.S. Department of the Treasury.