By Suzanne Monaghan
PHILADELPHIA (CBS) — They were once the go-to gift for births, graduations and even weddings, but the sale of U.S. savings bonds has declined from approximately 40 million in 2000 to just 400,000 last year.
The drop in U.S. savings bond sales has a lot to do with the drop in interest rates.
“The interest rate for a fixed rate EE bond now is about a half a percent,” says Adam Soloff with Soloff Wealth Management.
Soloff says other investment options yield greater returns.
“You’re seeing a lot more money flow into the stock market. You’re also seeing a lot more money flow into other types of savings plans,” says Soloff.
Including contributions to college savings plans, which Soloff says are the new go-to financial gifts.
Sales of U.S. savings bonds also fell sharply two and a half years ago when the government started selling bonds exclusively online and stopped over-the-counter paper bonds.
“The generations that are still willing to buy these bonds, aren’t necessarily the same generation that are very tech savvy,” says Soloff.
You may also be interested in these stories:
- Arnold Palmer’s Legacy Lives On In Delaware Valley
- Weekend Box Office: ‘Magnificent Seven’ Is No. 1
- Facebook, Twitter Facing Off During Presidential Debate
- Clinton Campaign Invites Philadelphia Activist To Debate
- Philadelphia Art Teacher Singled Out For Statewide Honor