Wednesday, January 27, 2010

Buy a bond with part of your refund

Do you know that with your tax refund you can purchase up to $5000 in US Series I savings bonds, in multiples of $50?   You must have direct deposit.  Once the election for bonds have been made, the remaining amount will be deposited in the banking institutions of your choice.  You can split your refunds into up to three accounts.  This is not a bad deal at all.  The return on the bonds is 5.64%.  The bonds MUST be held for 1 full year before redemption can take place.  If redeemed anytime between 1 and 5 years of holding you will lose 3 months of interest as a penalty.  At this point you can only purchase the bonds in your name.  At a later date you will be able to purchase bonds for others.

At the time of tax preparation, you will tell me (your preparer) that you would like to purchase bonds with your refund.  I advise you that you must direct deposit the refund, and I will get your bank information from you, ie:  routing number, account number.  Within 7 to 10 days your remaining refund will be deposited into your designated account.  The bonds will come to you in the mail, and it could take up to 5 weeks (or less).

Call or email me with your questions.

Virtual Tax Preparation, always at an affordable rate.  Credit card and cash accepted.

I look forward to being your tax professional.
Wanda (Uigei)

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