Banks May Be A Factor In The Decline Of U.S. Savings Bond Sales, Speculates SavingsBonds.com Founder
Spring Lake Heights, New Jersey (PRWEB) July 17, 2014 -- Sales of U.S. Savings Bonds have been declining. Jack Quinn, Founder of SavingsBonds.com, speculates that the banking industry has played a part in the demise of savings bonds.
U.S. Savings Bonds were once a very popular, affordable, go-to investment for millions. They were an easy way for most to start investing for their future as well as a way to show patriotism by supporting America during times of war. Between 1941-1945 over $33 billion worth of bonds were sold. They were available at local banks, offered in denominations as little as $25 and were also widely promoted through payroll savings plans and marketed for the tax-free education exclusion. In 1992, $17 billion worth of savings bonds were sold. However, in 2013, sales have dwindled down to approximately $686 million.
Why are savings bond sales declining? Quinn, who has been an expert in the savings bond industry for 22 years, believes that banks want to sell their own financial products rather than savings bonds. They could also become more efficient refocusing employees training time on their own products and services rather than on (less profitable) savings bonds transactions. Additionally, by eliminating the sale of paper bonds (effective 2012) at their branches, individuals are now forced to purchase savings bonds electronically, making them a much less accessible and attractive investment option.
“Banks sell competitive financial products to savings bonds and make more money selling their own products,” says Quinn. He adds, “I also believe banks looked to eliminate the hassle of handling savings bond transactions.”
Many bond owners say that purchasing online is just too complicated and time consuming. They are now opting for alternative investments for themselves, for gifts and for their children or grandchildren. Unfortunately the elimination of paper bonds at banks is preventing future generations from learning what it is like to literally hold an American iconic investment in their hands.
About SavingsBonds.com:
SavingsBonds.com is the #1 non-governmental site valuing over $1.1 billion in savings bonds. Complimentary calculator offers personalized, unique color-coded, Savings Bond Inventory Report© featuring “what this means to you,” helps bond owners avoid losing money and maximize their investment. Extensive, consumer-friendly information center, helpful videos, newsletters, current series bond rates, purchase bonds link, online and popular government forms available.
About SavingsBonds.com VIP Membership:
SavingsBonds.com VIP Members have 4 services not offered elsewhere. 1. Bond Inventory Report© available/updated 24/7 indicates current bond values, interest rates, timing, taxation and maturity issues, displayed on an easy to understand, color-coded, personalized, bond-by-bond statement. 2. Bi-monthly Alerts! © Emailed summary statements specific to Members' bond inventory, provides inventory totals, interest rates/earnings, helpful strategies regarding current and upcoming financial events, including maturity and taxation issues. 3. Cash In Report© ranks bonds in performance order. Eliminates guesswork on which bonds to cash in first. 4. Daily (Video) Bond Tips. The ultimate savings bond Membership offering superior bond management helps investors avoid forfeiture of interest, double taxation and potential IRS tax situations.
Jackie Brahney, SavingsBonds.com, http://www.savingsbonds.com, +1 (732) 887-8941, [email protected]
Share this article