Savings Bonds Look Juicy In Lean Times
With short-term interest rates at 30-year lows, yield-hungry savers are returning to an old favorite: the U.S. Savings Bond. The Treasury Dept. sold $13.6 billion worth of the humble Series EE Bond during fiscal 1992, the largest sales since Savings Bonds helped finance World War II. The bonds have a lot going for them: a minimum purchase of $25 and a flexible term that lets buyers cash out after six months or hold on for 30 years--but their main appeal is the high rate. Held for five years, today's EE Bonds will reward a saver with 6% interest--which is quite a nice return in today's market.