10 Top Sources for Premium Bonds

Friday, 04 Feb 2011 03:52 PM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
A premium bond is a bond that is priced higher than its par value. This happens because the interest rate on the bond is higher than the interest rate prevailing in the market. This explains why the premium bond is priced higher. 
 
Sources of Premium Bonds:

1. Premium bonds can be bought from sources like full-service brokerages that provide a variety of services to their clients. They charge a higher commission.

2. You can buy premium bonds from a discount brokerage. They charge a reduced commission fee compared to a full-service brokerage, but provides no investment advice.

3. You can buy premium bonds from a bond broker. Although they are another good source, most bond brokers insist on a minimum initial deposit of  $5,000. 

4. A cheaper way of investing in premium bonds is by investing in a bond fund floated by a mutual fund.

5. Financial institutions and banks can buy government bonds or securities on your behalf.

6.  I bond is an inflation-indexed savings bond. It offers a fixed rate of return plus an inflation premium. I bonds can be bought from many financial institutions.

7. I bonds may also be bought from your employer's payroll savings plan.

8. I bonds can be bought online, through TreasuryDirect.

9. You can buy treasury inflation-protected securities, or TIPS, in the form of an individual bond, an exchange-traded fund, or a mutual fund. The Treasury Department uses the Consumer Price Index, or CPI, as a guide to adjust the principal for inflation on a semiannual basis. Newly issued TIPS bonds are bought at Treasury auctions through sources like the government Web site TreasuryDirect.gov or through a broker.

10. Corporate bonds are routinely sold before maturity. On the secondary market you may find some premium bonds issued by corporations.

© Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink

PLEASE NOTE: All information presented on Newsmax.com is for informational purposes only. It is not specific medical advice for any individual. All answers to reader questions are provided for informational purposes only. All information presented on our websites should not be construed as medical consultation or instruction. You should take no action solely on the basis of this publication’s contents. Readers are advised to consult a health professional about any issue regarding their health and well-being. While the information found on our websites is believed to be sensible and accurate based on the author’s best judgment, readers who fail to seek counsel from appropriate health professionals assume risk of any potential ill effects. The opinions expressed in Newsmaxhealth.com and Newsmax.com do not necessarily reflect those of Newsmax Media. Please note that this advice is generic and not specific to any individual. You should consult with your doctor before undertaking any medical or nutritional course of action.

Keeping you up to speed on Lifestyle, health, and money-saving tips
 
 
Get me on Fast Features
Keeping you up to speed on Lifestyle, health, and money-saving tips
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved