Nashville, TNHIGH 46°F
LOW 33°F
Nashville, TNHIGH 46°F
LOW 33°F
U.S. Savings Bonds
Savings Bonds
You can use United States Savings Bonds to save for college.
Known as EE Bonds and Series I Bonds, they work just like normal bonds, except you don’t have to pay certain taxes on the interest you make, as long as you use the money for education.
If your child decides not to go to college, you can still use the money without paying a penalty. You will, however, have to pay taxes.
What you can expect
This is not a very fast way to earn money. The rate of return is low, but it is a very safe way to save.
- This is a less risky way to save. Your money is safe, because even if your paper bonds get destroyed or stolen, they are electronically recorded.
- You can buy bonds for yourself or your child.
- You may not have to pay state or local taxes on interest, depending on your income.
- If you receive financial aid, you may not be able to use the full amount you saved from bonds.
Requirements
- This money must be used for tuition costs only. You cannot use this money to pay for books, or room and board, or other education-related expenses.
- The person who owns the bond must be at least 24 years old. However, you can use the bonds to pay for people under 24.
