FinanceDude
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- Aug 3, 2006
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Treasury tightens limits on savings bonds
Individuals will be able to buy only $5,000 worth of series EE or I U.S. Savings Bonds annually, starting Jan. 1. That is down from a limit of $30,000 annually, which has been in effect since 2003.
Because the limit applies to both electronic and paper purchases of bonds, it means an individual can invest up to $20,000 annually in the bonds by purchasing $5,000 of each in each format. The limit is counted against a person's Social Security or Taxpayer Identification Number, which must be provided when the bonds are bought.
The U.S. Treasury Department has the power to adjust the limit annually. It was last at $3,000 in 1973.
The change was made "to refocus the savings bond program on its original purpose of making these non-marketable Treasury securities available to individuals with relatively small sums to invest," according to an announcement from the Treasury.
It noted only about 2% of bonds purchases by individuals are for more than $5,000 now.
The minimum price for an EE bond is $25. I Bonds have a $25 limit when purchased electronically, $50 if bought in paper form.
I'm not sure how it will effect anyone on here.........
Individuals will be able to buy only $5,000 worth of series EE or I U.S. Savings Bonds annually, starting Jan. 1. That is down from a limit of $30,000 annually, which has been in effect since 2003.
Because the limit applies to both electronic and paper purchases of bonds, it means an individual can invest up to $20,000 annually in the bonds by purchasing $5,000 of each in each format. The limit is counted against a person's Social Security or Taxpayer Identification Number, which must be provided when the bonds are bought.
The U.S. Treasury Department has the power to adjust the limit annually. It was last at $3,000 in 1973.
The change was made "to refocus the savings bond program on its original purpose of making these non-marketable Treasury securities available to individuals with relatively small sums to invest," according to an announcement from the Treasury.
It noted only about 2% of bonds purchases by individuals are for more than $5,000 now.
The minimum price for an EE bond is $25. I Bonds have a $25 limit when purchased electronically, $50 if bought in paper form.
I'm not sure how it will effect anyone on here.........