Investment and Finance

I Bonds have an annual interest rate that reflects the combined effects of a fixed rate and a semiannual inflation rate. They are an accrual-type security. Interest, if any, is added to the bond monthly and is paid when you cash the bond. I Bonds are sold at face value; i.e., you pay $50 for a $50 bond. Current Rate: 3.06% through April 30, 2012 Minimum purchase:$50 for a $50 I Bond when purchasing paper bond certificates. $25 for a $25 I bond when purchased electronically via TreasuryDirect

As of January 1, 2012, paper savings bonds will no longer be sold at financial institutions. This action supports Treasury’s goal to increase the number of electronic transactions with citizens and businesses.EE Bonds are reliable, low-risk government-backed savings products that you can use toward financing education, supplemental retirement income, birthday and graduation gifts, and other special events. Series EE Bonds purchased on or after May 1, 2005, earn a fixed rate of return, letting you know what the bonds are worth at all times. EE Bonds purchased between May 1997 and April 30, 2005, are based on 5-year Treasury security yields and earn a variable market-based rate of return.

Yes. You can check risk ratings and portfolio allocations in Morningstar Mutual Funds at http://www.morningstar.com

You are limited to a $15,000 annual purchase of EE bonds. You buy an EE bond for half of its face value. Foe example a $100 face baond would cost $50. EE bonds can be exchanged for HH bonds.

The maximum amount of I bonds an individual may buy each year is $10,000 in electronic bonds and $5,000 in paper I bonds. Federal I bonds cannot be exchanged for Federal HH bonds like Federal EE bonds can be.

The interest earned on your savings bonds is subject to federal income tax, which can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. Savings bonds are subject to estate, inheritance, gift, or other excise taxes, whether federal or state. Special tax benefits are available to qualified owners of EE Bonds under the Education Savings Bond Program.

Equity securities include common stocks, preferred stocks, securities convertible into common stocks, and rights and warrants to subscribe for the purchase of common stocks. Equity securities may be listed on a stock exchange or NASDAQ National Market System or unlisted.
Warrants are rights to purchase securities at a specified time at a specified price.

Equity securities include common stocks, preferred stocks, securities convertible into common stocks, and rights and warrants to subscribe for the purchase of common stocks. Equity securities may be listed on a stock exchange or NASDAQ National Market System or unlisted. Warrants are rights to purchase securities at a specified time at a specified price.

American Depositary Receipts ( ADRs ) are U.S. dollar denominated receipts representing shares of foreign based corporations. ADR's are issued by U.S. banks or trust companies and entitle the holder to all dividends and capital gains that are paid out of underlying foreign assets.