What Are Patriot Bonds explained by professional Forex trading experts the “ForexSQ” FX trading team.
What Are Patriot Bonds?
Since their release in 2001, I’ve encountered some investors who seem confused about the difference between Patriot Bonds and Series EE savings bonds, thinking they are somehow different or unique products. Given the way Patriot Bonds came onto the scene, the misunderstanding is quite reasonable. Still, clearing up any confusion is useful.
What Are Patriot Bonds?
Put simply, Patriot Bonds are absolutely identical in every way to the paper versions of the Series EE Savings Bonds.
The only difference is that if you bought your Series EE savings bond through a local bank or financial institution after December 10, 2001, the words “Patriot Bond” are printed on the face of the certificate. That is it. Really.
At the time Patriot Bonds were released, the United States Treasury told investors that it was a way for them to express support for the country’s anti-terrorism efforts; the memory of the deaths, violence, and bloodshed a few months before still fresh in the minds of a population reeling from the sudden shattering of domestic tranquility on such a grand scale. It explained that the proceeds of Patriot Bonds were deposited into the Federal Government’s general fund and spent according to law, which, at the time, included funding the ramp-up in anti-terrorism programs.
The Treasury also went on to explain that only Patriot Bonds purchased through financial institutions, such as a local bank, were eligible for the inscription because other Series EE bonds, such as those bought through the Payroll Savings Plan wherein employers withheld funds from paychecks at the request of the employee to put the money into savings bonds, were processed through multiple vendors and organizations that didn’t have access to the requisite printing equipment.
More About Bonds
If you are interested about learning how to invest in Series EE savings bonds, including Patriot Bonds, you can check out the following articles and resources I’ve put together on the topic:
- Beginner’s Guide to Investing in Series EE Savings Bonds
- How Do I Invest in Series EE Bonds?
- Tax Benefits of Investing in Series EE Savings Bonds
- How Series EE Savings Bond Interest Rates are Determined
You may also want to learn about investing in other types of savings bonds, which have their own benefits and drawbacks:
- Beginner’s Guide to Investing Series I Savings Bonds
- The History of U.S. Savings Bonds
- Series HH Savings Bonds for Beginners
- Be Careful How You Title Your U.S. Savings Bonds Because It Might Result In Big Tax Implications
You can also learn about bond investing in general from these resources:
- Six Risks Every Bond Investor Needs to Consider
- What Is a Triple A Bond Rating?
- Laddering Your Bond Portfolio to Fit with Your Cash Needs
- Over the Long-Run Bonds Can Be Riskier Than Stocks But They Still Might Belong in Your Portfolio
What Are Patriot Bonds Conclusion
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