WAR BONDS

What is a war bond? Well a war bond is something that is used to help finance the cost of running and operating the government, not necessarily a war. War bonds are something that are inexpensive the average college student, who wants to invest in something that is safe, will mature, and who doesn’t want to pay taxes on the bond immediately.
The revenue from war bonds could be used for any government spending and not specifically for the military effort. The U.S. government first sold bonds to the general public to help finance the Union effort in the Civil War. It is the first time since World War II that war bonds have been authorized. More than $185 billion in war bonds were purchased during World War II.
The first version of war bonds that were available were the series E. The E series were withdrawn on June 30, 1980. They were replaced with series EE. Series EE is a security that accrues interest (increases in value) until it’s cashed or reaches final maturity within 30 years. The purchase price is one-half of the denomination for example a $50 bond costs $25. Series EE bonds can be bought in eight denominations of $50,$75, $100, $200, $500, $1,000, $5,000, and $10,000.
War bonds can be held for up to 30 years. They do increase in value as long as you hold them. Depending on interest rates and how long you keep your bond determines how much the bond will be worth. It’s value can be greater than its face amount. Meaning that depending on the interest rate they will have more value. Series EE bonds can be cashed after six months otherwise, if taken out before then you will face a penalty. They are tax deferred, meaning you pay no taxes on the bond until they are redeemed that year.
War Bonds can be purchased at many financial institutions such as banks, credit unions, or Federal Reserve Banks So if you’re looking for an investment that involves little risk and you want to earn some interest and get involved in some investing and help out the federal government, war bonds are definitely the way to go.