It’s great to know that you are looking at other possibilities for savings. There are many saving options available to teens. “I” bonds may be an option for you. However, there are some penalties for early redemption so think about how soon you need this money to decide if “I” bonds are a good choice for you. Read on to learn the specifics.

 

      Basically, “I” bonds are a low-risk savings. They earn interest and can be cashed in at anytime.

 

      The options for purchasing them include online purchases from www.treasurydirect.com and from most financial institutions. Some employers also sell them through payroll deductions.

 

      Here are some facts about “I” bonds purchased through Treasury Direct: 

      You can also buy paper I-Bonds issued as paper bond certificates in amounts of $50, $75, $100, $200, $500, $1,000 and $5,000 from most banks and credit unions.

 

      If you purchase “I” bonds, plan to hold on to them for at least five years. If “I” bonds are redeemed during the first 5 years, you will be penalized by forfeiting the interest earned during the three most recent months. If “I” bonds are held for five years or more before being cashed out, there is no redemption penalty.