How to Buy War Bonds

How to Buy War Bonds. War bonds began with the Liberty Bond to help fund World War I, and Series E Savings Bonds helped the effort during World War II. Series E bonds continued after the war but eventually became Series EE bonds. On Dec. 11, 2001, the U.S. government introduced the Series EE Patriot Bond to help fund the war on global terrorism.

Step 1

Loan your money to the United States government when you buy war bonds, and accumulate interest compounded semi-annually over time. Receive the interest upon redemption of the bond.

Step 2

Buy Series EE bonds in denominations of $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000 at one-half of the face value. Prepare to pay a penalty if you redeem your bond early.

Step 3

Register ownership when you buy war bonds. A single owner is the only person who can redeem the bond, but it becomes part of the estate when the owner dies.

Step 4

Name two people when you register co-ownership. Either person may redeem the bond without consent of the other person.

Step 5

Choose a beneficiary bond if you prefer only one owner and a specific person named to receive the bond upon the owner's death.

Step 6

Purchase a bond as a gift for somebody else. You will need the person's Social Security number.

Buy War Bonds

Step 1

Create an online account at the Treasury Direct government website (see Resources).

Step 2

Fill out the required information. Provide your Social Security number, a U.S. address of record, a checking or savings account number, your email address and you will need a web browser that supports 128-bit encryption.

Step 3

Expect your access card to arrive in the mail within two to three weeks. Then log on to the Treasury Direct website and follow the links for EE Series bonds.

Step 4

Go to your local financial institution to buy Series EE paper war bonds inscribed with "Patriot Bond." You must supply the owner's full name and Social Security number, the address that will receive the bond, type of ownership, bond denomination, the purchasers name, address, phone number and signature.

Step 5

Sign up to buy war bonds through a payroll easy saver plan. This allows automatic purchases from your checking or savings account.

Step 6

Use a payroll deduction to make automatic bond purchases of $50 or greater. Check with your employer to make sure these programs are available and to fill out paper work.

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