When thinking of the future for either yourself or a loved one, then an investment into savings bonds can be a wise choice. You can either get them in paper form or electronically. When purchased electronically you can also manage them and redeem them online. When purchasing EE Bonds  on paper you buy them at half of the face value.

For example, you pay $50 for a $100 bond. The bond is not going to be worth it’s face value until it matures. When purchased electronically they are sold at face value. Example, you pay $100 for a $100 bond. These will be worth face value when you redeem them. The I Bonds are purchased for face value and can only be purchased in paper form.

When redeeming I Bonds or EE Bonds you must have them for at least one year. If you cash them in before five years there is a penalty of three months interest imposed. An example of that would be if you cash in a bond 36 months after you purchase it then you will receive the original amount you purchased it for and 33 months worth of interest.

Bonds can be cashed before the one year only in cases when it is declared a Federal Disaster, but the penalty will still apply on them. Before you cash the bonds in be sure to check and see what they are worth. You can check this online with a savings bond calculator before you go to the bank.