When you file your 2010 fax return, you’ll be able to turn refund money into U.S. Savings Bonds and share the wealth as a gift to a loved one.
The Series I bonds, which you can also buy for yourself, are sold in increments of $50 and delivered by mail in paper form. To buy them, include Form 8888 with your tax return.
Interest will accrue at an inflation-adjusted rate that resets every 6 months. Bonds bought between now and the April 15th filing deadline will pay 0.74 percent interest.
Generally the bonds must be held for at least a year, but after that the owner can redeem them, with forfeiture of 3 months’ interest if less than 5 years have passed. For more information, check the instructions for Forms 1040 and 8888.
Savings Bonds are a big part of the national debt — currently there are close to $190 billion worth outstanding. ”Buy Bonds”
“Thanks to John Burgess, aarp.org/bulletin Jan-Feb 2011″