Why Savings Bonds Make the Perfect Gift

A savings bond is a non-marketable security provided by the United States Treasury Department and backed by the credit of the U.S. government. Savings bonds can be purchased from a number of financial institutions, including credit unions. Check out this article to learn why savings bonds make the perfect holiday gifts. 

Saving Bonds

Savings Bonds Increase Over Time

  • Savings bonds are designed to provide funding dollars for the U.S. government. In exchange for using your money, the federal government pays you interest on the original note, meaning that the value of the savings bond will increase over time. However, the interest rates themselves will vary based on general economic conditions, and the bonds cannot be cashed within six months to one year of the original issue date.

Principal and Interest Will Never Be Lost

They Are Tax-Free

  • All savings bonds are exempt from state and federal taxes. However, there are penalties for cashing in a savings bond within the first five years of the original issue date.

Savings Bonds Offer Financial Security

  • Purchasing a savings bond for your child, niece, or extended family member is a great way to help improve his or her future financial outlook. This is especially true when you consider that savings bonds cannot be affected by the economy or dissolution of a banking institution.

Here at GCS Credit Union in O’Fallon, Illinois, our representatives are devoted to providing you with high-quality, affordable financial services you need. Learn more about purchasing savings bonds, obtaining debit cards, opening a checking account, or qualifying for auto financing by calling (618) 797-7993 today! We also offer personal loans, retirement accounts, and mortgage loans.

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