Sign up for our monthly Lifestyle newsletter for entertainment news, healthy living tips and more.
by Elizabeth Nolan Brown, From the AARP Bulletin Print Edition, March 1, 2010
You can stay true to your recession-inspired frugality by rolling your income tax refund into a U.S. savings bond.
Taxpayers can now purchase Series I savings bonds with part—or all—of their tax refund. Just complete IRS Form 8888 when filing, indicating how much of the refund to use to buy bonds (available in denominations of $50, $100, $200, $500 and $1,000). The unused refund portion will be delivered via direct deposit.
Once the tax return has been processed, the savings bonds will be mailed. This year, individuals can purchase the bonds only for themselves, but in the future other options will be available.
Savings bonds can be a good investment for those nearing retirement—they provide a safe alternative to stocks. But the Series I bonds have some limitations: They can’t be redeemed for a full year, and the three most recent months’ interest will be forfeited if they’re cashed in within the bond’s first five years.
For more information, go to TreasuryDirect.
Elizabeth Nolan Brown is a writer and web content manager for AARP Bulletin Today.
Please leave your comment below.
You must be logged in to leave a comment.
Up to 25% off device and online privacy protection plans
Help from experts & resources to get started
No-fee personal loans
AARP members receive exclusive member benefits & affect social change.
You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits.
Your email address is now confirmed.
You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age.
You can also manage your communication preferences by updating your account at anytime. You will be asked to register or log in.
In the next 24 hours, you will receive an email to confirm your subscription to receive emails
related to AARP volunteering. Once you confirm that subscription, you will regularly
receive communications related to AARP volunteering. In the meantime, please feel free
to search for ways to make a difference in your community at