If you are looking for a gift that can help a child save for the future and have some fun along the way, you might want to consider buying a bond for them. Bonds are debt securities that pay interest over time and can be redeemed for their face value at maturity. Bonds are also backed by the full faith and credit of the issuer, which means they are very low-risk investments.

There are different types of bonds available, but the most popular ones for gifting to children are savings bonds. Savings bonds are issued by the U.S. Treasury and come in two varieties: Series I and Series EE. Both types of savings bonds can be bought online through the TreasuryDirect website, which is the only site for making savings bond purchases.

Series I bonds are savings bonds that pay a rate of interest equal to a fixed interest rate plus a semiannual inflation rate. The rates adjust every six months based on changes in the Consumer Price Index. As of this writing, Series I bonds pay interest at a rate of 6.89%.

Series I bonds have some advantages over other types of bonds, such as:

• They protect your money from inflation, as the interest rate adjusts to keep up with rising prices.
• They are tax-deferred, meaning you don’t have to pay federal income tax on the interest until you cash them in or they reach maturity.
• They are exempt from state and local income taxes.
• They can be redeemed after 12 months, but you will lose three months’ worth of interest if you cash them in before five years.
• They have a 30-year maturity period, which means they will keep earning interest for up to 30 years.
• They have a low minimum purchase amount of $25 and a maximum annual purchase limit of $10,000 per Social Security number.

Series EE bonds are savings bonds that pay a fixed interest rate (set at the time of purchase) for 20 years. The current interest rate for Series EE bonds is 2.10%. However, the main attraction of Series EE bonds is that they are guaranteed to double in value if you hold them for 20 years. This means that a $25 bond will be worth $50 after 20 years, regardless of the interest rate.

Series EE bonds also have some benefits over other types of bonds, such as:

• They are tax-deferred, meaning you don’t have to pay federal income tax on the interest until you cash them in or they reach maturity.
• They are exempt from state and local income taxes.
• They can be redeemed after 12 months, but you will lose three months’ worth of interest if you cash them in before five years.
• They have a 30-year maturity period, which means they will keep earning interest for up to 30 years.
• They have a low minimum purchase amount of $25 and a maximum annual purchase limit of $10,000 per Social Security number.

To buy bonds for a child, you will need to follow these steps:

1. Before making a purchase, it’s a good idea to familiarize yourself with the TreasuryDirect website, which is the only site for making savings bond purchases. You can learn more about the different types of bonds available and how the website functions.
2. Request that the child’s parent or adult custodian open a linked TreasuryDirect account in the child’s name. This is called a “Minor Linked Account,” and it’s necessary to set this up for a child to receive savings bond gifts. If it’s not possible to open an account for the child for any reason, you can still gift savings bonds to them, but you’ll need to hold the bonds in your “Gift Box” until an account is established for the child.
3. Collect information about the child to whom you’d like to gift savings bonds, such as their full name, Social Security number or taxpayer identification number, and their

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