When you’re building your investment portfolio, you should always be sure to have some diversity in your accounts. This means spreading your savings over different types of accounts in a variety of sectors and with various levels of risk.
One of these investment options is the U.S. Savings Bond. Is this a good investment for you? Let’s look at a couple of the benefits to find out.
Savings bonds are relatively low-risk because they’re back by the U.S. Government, meaning that Uncle Sam is guaranteeing your investment plus your interest. If you’re looking for a low-risk solution to balance out your portfolio, the savings bond might be just the thing.
That said, because savings bonds are low-risk, they’re also low return so if you’re in need of a quick fix, this might not be the best option for you. On the other hand, if you’re content to just let your money sit and grow, a savings bond would work well. These bonds have a minimum five year investment period – any withdrawals before that will cost you a little interest.
Of course, you should always consult with a qualified financial planner before making any investment decisions. A good financial advisor can help you build an investment portfolio that meets your individual needs.