Savings Bonds: an inconvenient savings plan

Friday, April 28th, 2006
Categorized as: Savings Bond FAQ

The April 14th It’s Your Money in the Navy Compass says the inconvenience of redeeming Savings Bonds makes them better than other investments because it prevents impulse buying.

Not only is it a good idea for Sailors to invest in TSP [Thrift Savings Plans], but the little recognized U.S. Savings Bonds are a great way to put away money that is easily forgotten about, but able to use without penalty if needed.

Savings bonds can be conveniently purchased on MyPay, but are inconvenient to cash in because you can only go to a few financial institutions to cash them in. The inconvenience of the bonds is a good thing because it keeps you from using the money for impulse buying.

“Having an inconvenient savings plan can help with impulse buying because you don’t have the money on hand, but you can get it without penalty, it will take time and give you time to think whether or not you need that item. The U.S. Savings Bond is hands down the best inconvenient savings plan I’ve come across,” said Kaufman.

Rate this post (1 to 5 stars):  1 Star2 Stars3 Stars4 Stars5 Stars
(Average rating: 3.50 stars)
Loading...

FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

2 Comments

On April 30th, 2006 cregg steffler said:

All quite true.

BUT I am wondering how many of your readers know what “TSP” amd “MyPay” are…?

On April 30th, 2006 Tom Adams said:

Cregg – You must have missed the “[Thrift Savings Plans]” after TSP above, which I added since TSP wasn’t otherwise defined in this section of the article, although it had been defined earlier.

MyPay wasn’t defined, but I assume it’s an online payroll program of some kind.

On rereading this, the bigger issue is probably the “use without penalty” part, since there is the three-month penalty for early withdrawal.

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

Savings Bond Calculator



Help

Savings Bond
Questions

Get an answer to your questions from the Treasury's Savings Bonds team.

Click below to ask a question.

Ask the Treasury

TreasuryDirect

Invest online in Savings Bonds or
marketable Treasury securities.

Deal directly with the U.S. Treasury.

More info

Enroll

Log in