Does buying US Savings Bonds help as far as the deficit goes?

[fadedrose]

With my very small pension, I can afford $25 a month for a bond for one of the grandkids (a different child each month) - not doing it as a way to make them rich or me poor, but as a remembrance for each when I'm gone. A bit of trouble, but managed to sign up with Treasury Direct and can send out a bond whenever I want, without going to the bank, etc., or having a bond taken out of my SS automatically.

If everybody did this routinely or for birthday gifts for the kids, does it help the economy? If so, why doesn't the govt advertise purchasing bonds the way they did with war bonds in the 40's...

Oh, Treasury Direct - to open an account - they need your name, address, DOB, SS number, Checkbook or Savings and Routing number for the Bank, and Drivers' license or legal ID number. Some privacy questions and then you get a card in the mail, and can send out a bond to whomever you like whenever you like, if you have their name, address, DOB and SS number.

If this all sounds stupid, please advise why.

[Poll_Blind]

1. You might want to look into college savings bonds or state-specific savings bonds.

It really depends on where you live. I don't think savings bonds are a bad idea, per se, but I'm also not really sure I could make a convincing argument that buying US Savings Bonds was actually helping the nation on some deeper level.

PB

[lumberjack_jeff]

2. It's a nice sentiment, and worth doing for that reason.

As far as the economy, it doesn't help the deficit except to the extent that so long as people (like you) are willing to own US debt it keeps the interest rate that we pay via taxes low.