US Savings Bonds

[Catoneinutica]

Do any of you esteemed FGs know whether it's possible to buy US Savings Bonds in Japan?

[Kuang_Grade]

Basic rules of program
http://www.publicdebt.treas.gov/mar/marsbombuy.htm

You can own U.S. Savings Bonds if you have a Social Security Number and you're a resident of the United States, a citizen of the United States residing abroad, or a civilian employee of the United States regardless of residence.

While you can buy them at various banks but you can (and the Treasury Dept preferers this...they are trying to get away from paper bonds) buy the bonds in an electronic form directly from the Treasury Dept.

http://www.treasurydirect.gov/indiv/indiv.htm

Various forms which may be of help
http://wwws.publicdebt.treas.gov/NC/FoRMSHome?FormType=SBF#Purchase%20Forms

[Catoneinutica]

Many thanks, KG!

[Charles]

The question shouldn't be if you CAN buy them, but if you SHOULD buy them. US Savings Bonds are one of the lowest yielding bonds around, you could do much better.

[Kuang_Grade]

Well, the rates are not necessarily the greatest (although the default risk is effectively zero) but they do offer some sizable tax advantages (no local or state tax on the interest, no federal tax on the interest if the bond is used to pay for certain educational expenses, ect) for some investors/investment goals.

[Taro Toporific]

Well, the rates are not necessarily the greatest (although the default risk is effectively zero) but they do offer some sizable tax advantages (no local or state tax on the interest, no federal tax on the interest if the bond is used to pay for certain educational expenses, ect) for some investors/investment goals.

AND accumulating interest on the Saving Bonds that are given to you as "gifts" <nudge-nudge-wink-wink> are not reported to the IRS on an annual basis.
Basically, you only have to pay taxes on them when you redeem them after their 20 year term. Ok, ok, yes you are supposed to report them on your 1040 but just like the profits on stock options (which are not entered into the IRS system) interest on saving bonds can be hidden with ease. <Disclaimer: This is rather dark-gray area advice---don't whine to me if you get busted by the IRS.>

[Greji]

Do any of you esteemed FGs know whether it's possible to buy US Savings Bonds in Japan?

Going from the opposite point of view, have any of you esteemed, or not so esteemed FGs ever cashed a savings bond in Japan? Apparently, it's possible, but the where and how's escape me as it is explained by the government agencies on line.

[Kuang_Grade]

[Greji]

It is not much help, but it is something....the term incorporated can be tricky to define...ie, Citibank has banks in the US but are the branches in Japan actually affiliated with them beyond being to access Citibank's US ATM network?

http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eeredeem_special.htm

Thanks KG. I had seen that and wondered if anyone had every found a bank that would accept them like the Treasury Department says. I'm still looking, which is another way of saying that I'm to lazy to bundle the stuff up and send it off to the T-men.