Benefits of Buying Savings Bonds for Little Kids


Many adults today might remember being gifted with savings bonds as a child. While there was not the excitement of a savings bond falling out of a birthday or Christmas card as there is when cash is involved back then, savings bonds are still a great way to help children financially while they are still young.

Security bonds are ideal for children because they are the only type of security kids can actually own. Denominations of savings bonds are available at face value in amounts ranging from $25 to $10,000. They are available from the U.S. Treasury Department online.

However, banks no longer sell paper bonds to the public effective, January 2012.

Series EE bonds are available electronically through the Treasury’s online system. Series I bonds can be purchased using tax refunds from the Internal Revenue Service in paper form or are available on the Treasury website in electronic form. Anyone can purchase a savings bond for another individual but important information will be needed from the bondholder.

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