Get a Lifestyle credit card

The party has not started until I got there, folks. "And when will that be?" Oh, usually about half an hour before the riot squad. Remember: When parties, something is worth overdoing. As hedge fund management. Make sure you have the right credit cards though, so the rewards will compensate for the damage wallet. Check out these top three cards for the social (hyper) active:

 Eat as much as you can, we are at the credit limit and this meal's gotta last until October.

 Why Get a Lifestyle card?
You do realize the alternative wear a handful of money, often in a dark and crowded nightclub?
That aside, lifestyle cards to reduce the cost of the party somewhat. You can get discounts on drinks, escape cover costs, and at least some discount. For those not into clubbing or drinking, lifestyle cards discount things like movie tickets.
Please note that this mapping must be paid in full each month. Otherwise, the interest just swallow a potential benefit, and it is cheaper to use only cash.

 1. American Express Platinum Credit Card

 amex platinum
If you have a good way "Cup my first" to say.


The Amex Platinum most versatile lifestyle card now. This one is just as good for a quiet movie night, or for a "wake up face down in the longkang" binge.
Other benefits include:

    1-for-1 drinks at Butter Factory
    20% of premium bottles Le Noir and Attica (which would make them just a little expensive)
    15% off spirits, wine and champagne at the pump room
Not interested in clubbing? The card you also get movie tickets at Cathay for $ 7 (2D films) on weekdays and $ 9.50 on weekends. You also get $ 5 off Platinum Movie Suite tickets. Then you get a medium popcorn with every two tickets purchased.
Amex Platinum you can trade reward points for refund. This amounts to around 1% cash back, which is used to offset the next invoice. If you shop in a Platinum partner outlet (selected stores), you earn 10 times the points.
For those who do not have a good time locally, you can fly ticket cheap to Bali or wherever. The Amex Platinum gives you a bonus mile for every $ 1.28 you spend (approximately). It is valid for more than 40 different airlines.
To qualify for the card, you need a minimum income of $ 50,000 a year. Annual fee is $ 300 per year. So yes, it is a bit exclusive.

 2. Citi Clear Platinum Card

 Citibank clear platinum card
How is this piece of plastic either (1) clean up, or (2) platinum?


It was one of our top picks last year, and it remains. Citi Clear card is still the best benefits for special occasions when you want to hit the clubs. "What special events are those?" Well Money Smart, which is defined as "after 6:00".
The Citi Clear Card combine clubbing benefits with an above-average reward scheme. Benefits include:

    Free and one-for-one drinks at Zouk
    10% of the total bill at Wala Wala
    15% off food menu at Bear market
The rewards came even before the first $ 5,000 spent, which is unusual. An expenditure of $ 4,900 (not hard in a year) you get $ 20 vouchers Crystal Jade or Sons.
No movie discount, but you earn five times the points when you buy tickets at Cathay, Eng Wah, or Golden Village.
This card requires a minimum income of $ 30,000 per year, and an annual fee of $ 161. It is waived for the first year.

 3. Standard Chartered Manhattan Platinum card

 Stan Chart Manhattan platinum credit card
And we will this one named after the first city credit cards bankrupt ...


Stan Chart's Manhattan Platinum on the lifestyle list this year. Primarily due to the $ 80 cash back you only for the application (valid until January 31, 2013).
Oh, missed $ 80 huh? Follow us on Facebook so we can give you a shout out next time.
Promotions aside, this is a good card for movie-goers and drinkers. Or both. Actually, you should probably do both at the same time, especially as Adam Sandler's on screen. This is the only way he's funny.
Anyway, this card gives you free access to the Velvet Underground (and a few other clubs) on Fridays and Saturdays. But you have to be among the first 100 to flash before midnight. You also get a free drink.
For movies, one of the first 20 to charge the card at a Cathay Cineplex on the weekend (Friday, Saturday and Sunday) and you get 1-for-1 movie tickets.
The payback for this card is the best on this list:

    Spending $ 1 - $ 999 monthly: 0.5% Cash Back
    Spending $ 1,000 - $ 2,999 monthly: 1% cashback
    $ 3,000 and over: 5%
So rush to put things on your bill (and your friends you paid in cash).

Credit Cards for shopping

 Best Credit Cards for Grocery Shopping
By Ryan Ong Credit Cards | Mar 18, 2013 Comments
These days, there are only two ways to get cheap groceries. The first is with an optimized credit card. The second involves Screaming "I thought it was a free sample", and then sucking in sharp breaths of air till the overweight security guard gets off you. And if you're like me, you prefer to keep life unexciting in some regards. So here's the aforementioned optimized Cards:

 Melons
Nice Melons: If any guy get slapped in a supermarket, it's 97% likely to happen in this Aisle.

 1. HSBC Visa Platinum Card
Remember when HSBC was "The Choice"? That was a card for people firmly embraced Cold Storage. Not so much hun Grocer, but as a sort of religion. They got "The Choice", which was hands-down the best grocery card in the country.
Sadly, HSBC made the decision to discontinuous The Choice back in 2012. So measuring its closest Surviving relative, the HSBC Visa Platinum. This card gives you a flat 5% rebate on just about every supermarket in the country (Cold Storage, Jason's, Giant, etc.).


HSBC visa platinum credit card


The rebate ook applies at Guardian, Which sort of counts as groceries I guess.
Other Advantages include:

    15% discount at Caltex petrol stations
    $ 75 for 10 movie tickets from GV (Save about $ 25)
    Fast points accumulation: 1 point per dollar, and you can start Redeeming at around 1,800 points
    Good dining discounts (10% - 15% off total bill at various restaurants)
This card requires a minimum income of $ 30,000 per month, and has a credit limit of 2x your monthly income. You can apply for it - and find more details here.

 2. Citibank SMRT Platinum Visa Card
This card for public transport, as the name implies. But aside from Doubling as an EZ-Link card, and getting you SMRT vouchers, it's surprisingly good for groceries.
This card gives you around 5% Cashback at almost every supermarket in the country (Cold Storage, Sheng Siong, Shop and Save, etc.).
The exact cashback varies based on spending. If you spend more than $ 600 a month, you get 5% on Cash Back on Purchases of $ 50 +. For Purchases below that, you get 3% cashback.
If you spend less than $ 600 a month, the Cashback is 0.3% less (so 4.7% on Purchases of $ 50 + 2.7% on Purchases under $ 50).


Citibank SMRT Platinum visa card


Other Advantages include:

    Redeem points for free SMRT rides and $ 10 SMRT vouchers
    In Earn points when topping up your fare card
    5% discount at Esso petrol stations (Because logic is overrated)
    Good dining discounts (10% - 15% off total bill at various restaurants)
This card requires a minimum income of $ 30,000 per annum, and has a credit limit of 2 x your monthly income. The guy delivering it does not actually use the train, so it tends to arrive on time. You can apply for it - and find more details here.

 3. Most American Express Reward Cards
Maybe you do not visit mid-range Supermarkets like the rest of us. Maybe you have a distinct palettes, and pay $ 450 for advanced cooking courses and load up on foie gras. Dat In case, you want a credit card that caters to the higher end of grocery world.
You want an Amex rewards card, like the Amex Platinum Credit Card. At the suitably snooty Marketplace (almost interchange loveable with Jasons, The Gourmet Grocer), this card gets you five times the reward points. That is, assuming you shop on weekends (Friday, Saturday, Sunday).


amex platinum


You can also get the same deal at Cold Storage (Jasons is pretty much just their high-end branding).
In this matters because you'll accumulate points INSANELY fast. At the 5x bonus, you're getting around 10 points per $ 1.60 spent (Usually 2 points per $ 1.60). 2,100 points gives you $ 10 in credit, and 4,000 points is enough to qualify for a $ 20 Cold Storage voucher.
Other benefits include:

    Frequent flyer miles
    Free express delivery at Borderless Buys
    Complimentary Membership in the Palate Club (Usually $ 428), Which gives you up to 50% discounts at select restaurants
This card requires you to earn at least $ 50,000 per annum, and has a credit limit of two to four times your monthly income.

 Pay It in Full
Note dat the Advantages here only matter if you pay the bill in full, before the billing cycle ends. Like most credit cards, prosthesis have an interest rate of 24% per annum. The discounts and freebies will never make up for that.

Standard Chartered NUS card Student credit cards

My cousin had a credit card when she was 18 years old. Today, as a successful business woman 35 years old, I bet she is half done paying it off. That's why I'm suspicious of students with credit cards. Granted, I would not trust a 18 year old with a Chia pet, let my bank account. But quite a few people I'm wrong. As it turns out, there are some benefits:
Standard Chartered NUS card


"And this boy, the bank's ownership papers about you."


Students learn to Credit Cards

Teach them well ... they learn to have a credit card. And not kill themselves with it. It's kind of like knives and fire, unless your day job involves the circus, you probably will not let your kids near that.

But you can not give your children go through life never cut things, or roasting a marshmallow. At some point, they will have to deal with something dangerous. And there are few things more dangerous than a 18-year-old with a credit card.

If they've never been before, they go bonkers the second they get it. They are financially self-destruct a lack of experience. This is why Arthur Turo, a practicing CPA, leaving his two sons credit cards:

"They supplementary cards. But I make sure they know how to keep accounts. They have to show me the receipts and statements at the end of the month, otherwise I took the card back.

When they buy something I make sure to repay them all, including interest. I want them to understand how much more they actually pay when they buy on credit. If I ever their debt, I stop their allowance for two months.

I think the lesson has sunk in. They never over-spend, and they will tell you they do not even like to buy on credit. Even when they can. "

 Standard Chartered NUS card
Student discussion

"We maxed all your credit cards while you're at lunch. This debt counseling course is gonna be hands-on."



Arthur's views are shared by some parents and youth counselors, who feel that:

    Credit Cards educational
    Handling credit required experience
    This reduces the feeling of financial dependency

We will add a fourth: the right student credit cards are low-risk.


1. Credit Cards educational

At some point, we all have to deal with debt. It's probably better if we learned, when we are thrown off the deep end. Consider credit card debt as the little pink bike with training wheels, it's a baby step, before we deal with whoppers like a mortgage.

Parent Andrea Huang gave her 19-year-old daughter a supplementary card for that very reason:

"I think it's important to learn about the difference between debit and credit, the interest is charged, and the different fees charged by banks. As a parent, you just sit down and talk about it to your children, it is over their heads. all the figures and it is very boring.

As a credit card, as you supervise the use, is a hands-on tool. "



"The third time you roll-over debt, are those your fingers instead. I will never lie to you boy"



A youth counselor, known only as Alex, adds:

"Many of the Poly or Uni students, that particular age group, will soon or be able to make their own cards to get. Before they do, they should the terms and conditions to understand, and how much hot soup they might land

Parents should strictly supervise their child's use of the first credit card. Make sure that their children understand before they apply for their own. Especially when and how to pay the bills. I've met a lot of students with credit cards, which do not even understand how compound interest works. "


2. Handling credit required experience


Old people on the steps

"I have experience with credit order. I am 67 and I beat that loan shark at 200 yards, easy."
Standard Chartered NUS card


Humans are not wired things that are not ours to keep. Our lizard brains do not understand, for the same reason it can not understand why someone else's popcorn in our legs are not ours to complete. That is why the management of credit is so hard: It is dealing with money that is not really ours.

Alex says the maturity to be developed:

"We found that teenagers who have access to credit suddenly tend to be in debt. Whenever they went window shopping, for example, they suddenly realize that 'Eh, any of these things that I can walk in and buy now.

Different people have different coping mechanisms. If someone is slowly introduced to the concept of credit, parental supervision or student cards, they develop psychological insight needed to manage it. But maturity and self-control need to be cultivated. "

Alex suggests that:

    Students' receipts so they can track the full extent of their spending
    First time card users check transaction history once a week
    Parents impose a cut-off (ie confiscate the card after the charges last $ X)
    Students are taught about billing cycles and repayment methods


3. This reduces the feeling of financial dependency


Kid scoldedKid rage

"I was not stealing father's money. I was exhibiting financial independence."



According to Alex, the great benefit of students with credit cards is that:

"Students realize they can pay for things themselves. If there is a fault, as they spend $ 200 and then have to pay it back in two months, okay this is bad. On the other hand, they have a feeling that they cleaned their own fault.

It is a way of feeling reduce financial dependence on their parents. "


4. Student credit cards are low-risk

Maybe you are still worried about your teenager gets a credit card. Or maybe you are a student and want to get the first piece of plastic. Well, there are a lot of low-risk options for you.

The Standard Chartered NUS card, for example, has a credit limit of $ 500 (typical for student cards). For the first time credit card users, it's a good safety cap. You can not walk into a store and buy an iPad with it

Your Last Great Income Tax Write-off

According To Morgan Stanley…
"The decision to invest in a home is not only a practical decision in terms of meeting lifestyle and family needs, it can also serve as a means of accumulating wealth through property appreciation.

Additionally, with the deductibility of mortgage interest and the special treatment of capital gains there are unique benefits associated with leveraging an investment that is a relatively stable asset.

Thus, a properly financed home can enhance an individual's overall investment strategy."* www.msdwhomeloans.com - 'Liability Management for Wealth Creation'

The deductibility of home equity interest provides a substantial opportunity for sophisticated tax planning. The interest rate on a home mortgage is generally much lower than credit card rates of 18% to 21%. It's a financial slam dunk to pay off that debt with your home equity. Not only would you pay a lower rate, but you could also write off the interest as a tax deduction. (If you itemize deductions on your 1040)

Make All Your Interest Tax Deductible
Consider, interest is the fee you pay for the use of someone else's money. However, can't you in effect, lower that fee if you can write it off as a deduction on your taxes? The problem is that under the current tax laws you can't deduct interest on credit card loans and personal loans (consumer debt). Generally, that means you must find a way to turn the interest (fee) into mortgage debt.

Consider: If you're in the 28% tax bracket and you pay $10,000 of interest on your home, $2,800 of those payments can come from the IRS in the form of income taxes you don't have to pay. (If you itemize deductions on your 1040)

How Much Can You Write-Off
Interest deductions on a first mortgage are straightforward. They apply to both first and second homes. Generally, you can deduct all of the interest you pay on a first mortgage each year, up to the smaller of:

The total cost to buy or build your home plus make any improvements,
Or $1 million ($500,000 for a married individual filing a separate return.)

Remember, the cost of your house includes more than the amount paid to the seller. It also includes appraisal fees, title search, title insurance, transfer taxes, broker's commissions paid by the buyer, survey fees, bank or lender fees, legal fees, mortgage taxes, and any other nondeductible closing costs such as postage. It could also include the purchase of additional land adjacent to your home.

Deductibility Home Equity Loans
Interest on home equity debt is deductible to the extent the debt does not exceed $100,000 (or $50,000 for a married individual filing separately). Technically, the limit is the home's fair market value in excess of any outstanding home acquisition debt, with a $100,000 maximum.

The beauty of home equity interest: How you use the money is irrelevant. Money can be borrowed for vacations, parties or to pay off other debt.

To understand the mortgage interest deduction rules, read IRS Publication 936.

Tax Saving Tips : Save your tax and save a lot of money

There are different ways to save your tax and save a lot of money. Even there are different plans to save your tax in India. New salary is revealed in India in 2010, people get a higher salary or higher current salary beyond their own expectation and the current salary is dependable upon the cutting of tax. All types of new income tax schemes will depend upon the India finance ministry for government employees as well as for private employees in India. India government gives different types of tax discounts and there are different type of popular tax saving options for the people of India such as funds, saving bonds and life insurance etc. There are number of banks in the list of most popular tax saving schemes in India. You can call any of the banks for the information about tax saving options. The tax saver will tell you about the plans and procedure about the tax saving according to your current salary or total CTC. It is better to pay the car loan EMI, home loan EMI and many more in advance because the bank will imply the new interest rate at higher level up to 0.50%. So don’t take your loan EMI very easily.

A powerful systematic investment plans will help people in India. Reserve bank of India has various tax saving tools. The bank will sign the bond for 3 and 5 years at the rate of interest is 7.5% per annum. There are two types of bonds under the reserve bank of India such as cumulative bond and non-cumulative bond. There are so many private sector banks in India for tax saving. The best way to get information about saving tax is get in touch with a tax consultant. He has the complete information about tax implied on your salary and how you can save it. It is suggested to give the exact information about the income you receive from all sources. Mutual funds, Child insurance policies and health insurance plans can give you numerous benefits and you will be able to save tax. An agent will come at your place and help you fill the documents which you need to submit at the time of filing for year’s tax. This is because of the fact that the process may be confusing and tedious.

Getting help from a tax consultant, you will be able to save a lot of time and efforts. It is possible to save tax if you take right steps at the beginning of year. Proper planning and implementation is required so that you can save significant amount of money. One of the best options to get the information about tax saving schemes is to get online and browse various sites giving details about tax saving schemes. You do not have to do anywhere to get information as you can get it at the comfort of your home. You can also contact a tax consultant who can give you the best suggestions.

Income Tax Slabs For Financial Year 2011-12

For Male Citizen :

Then: The pre-budget period witnessed that the basic exemption limit was Rs. 1, 60, 000, where the total income of the assessee was in between Rs. 1.6 lakhs to Rs. 5 lakhs; tax levied on total income was 10%, in case the total income fell in between Rs. 5 lakhs to Rs. 8 lakhs; tax levied was 20% and whereas the total income was above Rs. 8 lakhs, the applicable rate of taxation was 30%.

Now: After the Union Budget 2011-12, there has been some amendments with respect to the figures. The limit has been raised by Rs. 20, 000. The basic exemption limit is Rs. 1, 80, 000, where the total income of the assessee is in between Rs. 1.8 lakhs to Rs. 5 lakhs; tax levied on total income will be 10%, in case the total income falls in between Rs. 5 lakhs to Rs. 8 lakhs; tax levied will be 20% and whereas the total income is above Rs. 8 lakhs, the applicable rate of taxation will be 30%.

For Female Citizen :

Then: The pre-budget period witnessed the basic exemption limit for women to be at Rs. 1, 90, 000, where the total income of the assessee was in between Rs. 1.9 lakhs to Rs. 5 lakhs; tax levied on total income was 10%, in case the total income fell in between Rs. 5 lakhs to Rs. 8 lakhs; tax levied was 20% and whereas the total income was above Rs. 8 lakhs, the applicable rate of taxation was 30%.

Now: The post budget of such exemption limit remains unchanged and the same shall be applicable as per the Union Budget 2011-12. The reason behind such ignorance is the new direct tax code which is likely to prevail from 1st April, 2012, which aims at abolishing the gender distinction system in terms of payment of tax.

For Senior Citizen :

Then: The pre-budget period witnessed the basic exemption limit for senior citizens to be at Rs. 2, 40, 000, where the total income of the assessee was in between Rs. 2.4 lakhs to Rs. 5 lakhs; tax levied on total income was 10%, in case the total income fell in between Rs. 5 lakhs to Rs. 8 lakhs; tax levied was 20% and whereas the total income was above Rs. 8 lakhs, the applicable rate of taxation was 30%.

Now: After the Union Budget 2011-12, there has been some amendments with respect to the figures. The limit has been raised by Rs. 10, 000. The basic exemption limit is Rs. 2, 50, 000, where the total income of the assessee is in between Rs. 2.4 lakhs to Rs. 5 lakhs; tax levied on total income will be 10%, in case the total income falls in between Rs. 5 lakhs to Rs. 8 lakhs; tax levied will be 20% and whereas the total income is above Rs. 8 lakhs, the applicable rate of taxation will be 30%.

For Very Senior Citizen :

A new concept of very senior citizens has been introduced where people who have attained the age of 80 or more will fall. For this category, the assessee will get an exemption upto Rs. 5, 00, 000, earlier as these people fell under the senior citizen category, there limit was also restricted to Rs. 2, 40, 000. The rest of the part shall be similar to the present position of senior citizens, that is, from Rs. 5, 00, 000 to Rs. 8, 00, 000, 20% of the income shall be taxable and incase the income exceeds Rs. 8, 00, 000, 30% of the total income shall be taxable.

It shall be noted that in every case, the application of education cess and secondary and higher education cess shall prevail at the same rate of 2% and 1% respectively

Advance Tax

As the name suggests, it refers to paying a part of your yearly taxes in advance. Advance tax is the income tax payable if your tax liability exceeds Rs 10,000 in a financial year. Advance tax should be paid in the year in which the income is received.

Advance tax is applicable when an individual has sources of income other than his/her salary. For instance, if one is earning through capital gains, interest on investments, lottery, house property or business, the concept becomes relevant.

Any rebate due fetches you an interest of 0.5 per cent every month, or, six per cent annually, as in the case of an income tax refund. However, if you don’t pay the advance tax on time, you’ll be charged one per cent every month, or, 12 per cent a year.

Using Your Income Tax Refund to Save By Buying Series I U.S. Savings Bonds

How can I use my tax refund to purchase paper I Bonds?

When you file your tax return, include IRS Form 8888. Complete Part 2 to tell the IRS you want to use part (or all) of your refund to purchase paper I Bonds. Purchase amounts must be in $50 multiples and you can choose to have any remaining funds delivered to your either by direct deposit or by check.
What's New for this tax year?

New for the 2011 Filing Season - in addition to buying savings bonds for yourself, you can purchase bonds for others, including your children and grandchildren.

Also, if you don't use all of your refund to purchase savings bonds, you can have the remaining balance issued in the form of a paper check
What is a Series I savings bond?

I Bonds are a low-risk, liquid savings product. While you own them they earn interest and protect you from inflation. The earnings rate has two parts: a fixed rate and an inflation rate. (Details)
If I want to use my refund to buy savings bonds, do I need to set up a TreasuryDirect account first?

No. You are not required to have a TreasuryDirect account. You can use IRS Form 8888 to request the purchase. Just follow the instructions on the form. Once your tax return has been processed by the IRS your savings bonds will be mailed to you.
Is this new? Could a refund previously be used to buy U.S. savings bonds?

The option to purchase paper I Bonds with your refund became available in January 2010. Previously, you could only direct the refund to your TreasuryDirect account to be used for the purchase of electronic securities. Now, you have both options.

You can now use your refund to buy Series I savings bonds even if you don't have an account with Treasury.
What kind of U.S. savings bonds can I buy using this tax refund method?

Series I U.S. Savings Bonds. (Details)
How much can I buy using this tax refund method?

In any single calendar year, you can buy up to a total of $5,000 of paper I Bonds (whether using your refund or some other method). You buy I Bonds at face value, meaning if you pay $50 (using your refund), you receive a $50 savings bond.
What denominations are available?

Using this purchase method, I Bonds will be issued in denominations of $50, $100, $200, $500, and $1,000 depending on the amount you request.

If you buy $250 or less of savings bonds with your refund, then the $50 denomination will be used to fill the order.

If your purchase amount is over $250, the $50 denomination will be used for the first $250 and the remainder of your order will be filled using the fewest possible number of additional bonds.
Could you give an example of how this would work?

Example: Bill is entitled to a $2,500 federal income tax refund. He decides to save $1,000 of the refund by buying savings bonds, to save another $1,000 by having the IRS direct deposit that amount to his IRA, and have the IRS direct deposit the remaining $500 to his checking account.

Bill gives the IRS these instructions by completing Form 8888 and attaching it to his Form 1040. In Part 1of the form he provides his IRA account number and indicates that he'd like to put $1,000 in the account. He also provides his checking account number and indicates he'd like to put $500 in that account. Then, in Part 2 of the form, he indicates that he'd like $1,000 worth of paper Series I bonds registered in his name with his daughter as the beneficiary. A few weeks later he receives six $50 bonds, one $200 bond, and one $500 bond in the mail.
Are there any redemption restrictions or penalties for early redemption?

Savings bonds are designed as longer-term investments, and generally cannot be redeemed during the first 12 months after you buy them (unless you are affected by a disaster, such as a flood, fire, hurricane, or tornado).

Also, if you redeem a savings bond within the first five years, the three most recent months' interest will be forfeited. After five years, no penalty will apply.
Will I receive paper bonds?

Yes. The I Bonds will be issued in paper form.
What registrations are available?

Single owner, co-owner, and beneficiary registrations are available. Taxpayers can also request bonds in the names of other people to give them as gifts.
Can I buy savings bonds for my children or grandchildren using this tax refund method?

Yes. You can request bonds in the names of others making it possible to give them as gifts. The bonds will be mailed to you at the address on file with the IRS.
How is interest on I Bonds calculated?

The I Bond earnings rate is a combination of two separate rates; a fixed rate and an inflation rate. (Details)
Where can savings bonds be redeemed?

Savings bonds can be redeemed at most financial institutions.
How are savings bonds taxed?

Interest on savings bonds is subject to taxes imposed under the Internal Revenue Code of 1986. The bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes.

Savings bond interest is subject to federal income tax; however, taxation can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. You also have the option of claiming interest annually for federal income tax purposes.

Tax benefits also may be available when redemption amounts are used to pay education expenses.
What tax benefits may be available if savings bonds are used to pay education expenses?

Qualified taxpayers may be able to exclude all or part of the interest earned from eligible savings bonds issued after 1989 when paying qualified higher education expenses. Savings bonds must be issued in the name of a taxpayer age 24 or older at the time of issuance. Other restrictions and income limits apply.(More Information)
What if my savings bonds are lost, stolen, or destroyed?

The Bureau of the Public Debt (BPD) is authorized to replace lost, stolen, or destroyed savings bonds. You can file a claim by writing to: Bureau of the Public Debt, Parkersburg, West Virginia 26106-7012. You will need to complete form PD F 1048.

You should keep records of your savings bond serial numbers, issue dates, and social security or taxpayer identification numbers in a safe place. This information will help speed up the replacement process.
What if I want to have a savings bond reissued (for example, if I want to add a second individual as a co-owner or a beneficiary)?

If you decide you want to change the registration on your bond(s) you can use form PD F 4000 to request the change.
How long will it take to receive my savings bonds?

Your savings bonds are ordered after the IRS completes processing your tax return. Once ordered, it may take up to three weeks for your savings bonds to arrive in the mail. If you're having a portion of your refund deposited directly into your bank account, you may receive it before your savings bonds arrive by mail.
What will the issue date of my bonds be?

The issue date will be the first day of the month in which IRS submits payment for the bonds to the Treasury Retail Securities site in Pittsburgh. For example, if Pittsburgh receives your order from IRS on February 18, the issue date of your savings bonds will be February 1.
What if there's a mistake on my tax return?

If the IRS encounters errors on a return (e.g., refund amount is calculated incorrectly, IRS Form 8888 is completed incorrectly, requested amount is not a multiple of $50, etc.), the bond purchase will be cancelled and the full refund amount (if any) will be delivered to the taxpayer.

Exception: If an error is made that increases the refund amount the bond purchase will occur as requested and only the additional funds will be returned.

For more detail on how the IRS manages changes in refund amounts see the instructions on IRS Form 8888.
Whom do I contact if I don't get my savings bonds?

The first step is to check the status of your refund by going to the "Where's My Refund" feature on www.irs.gov or calling 1-800-829-1954. You can generally get information about your refund 72 hours after the IRS acknowledges receipt of your e-filed return, or three to four weeks after mailing a paper return. If the IRS has processed your refund and placed the order for your savings bonds, you will need to contact the Treasury Retail Securities site in Minneapolis at 1-800-553-2663 to inquire about the status of your savings bonds.

Using Your Income Tax Refund to Save by Buying U.S. Savings Bonds

1. Is this new? Could a refund previously be used to buy U.S. savings bonds?
This option was available for the first time in early 2010. Improvements are now available beginning January 2011. There are more registration options for owners and beneficiaries; you can elect direct deposit or check in the mail for any unused portion of your refund.

2. If I get a refund on my federal income tax return, can I direct the IRS, on my tax return, to help me save part or all of it by direct deposit?
Yes, you can. When you file your tax return, you can tell the IRS you want to save part or all of your refund and have the rest sent to your checking account. You can save part or all of your refund by submitting Form 8888, Allocation of Refund (Including Savings Bond Purchases) when you file your return. Follow the instructions on Form 8888 to tell the IRS to make a direct deposit of the amount you designate to an IRA, to buy U.S. savings bonds, to make a direct deposit to a savings or checking account or other savings vehicles.

3. If I want to use part or all of my refund to buy U.S. I Savings Bnds, do I need to have previously set up an account with the Treasury Department?
No, you don't need to open an account in advance with Treasury. Follow the instructions on IRS Form 8888, and after you file your tax return with this form, the IRS will arrange for your U.S. savings bonds to be mailed to you.

4. Do I have to have a bank account in order to purchase U.S. Series I Savings Bonds with my tax refund?
No, you don't need to have a bank account to purchase I bonds with your federal tax refund. If you purchase I bonds with your 2010 tax refund, you can elect to have any remaining refund amount not used to purchase bonds mailed to you as a paper check.

5. Do I have to use all of my refund to purchase bonds?
You can use all or part of your tax refund to purchase I bonds. Your request for bonds must be in increments of $50. Any remaining refund amount not used to purchase bonds will be mailed to you as a paper check or you may elect to have the remaining amount direct deposited into a checking or savings account.

6. What kind of U.S. savings bonds can I buy using this streamlined tax refund method?
Series I U.S. Savings Bonds. These Series I Savings Bonds are a low-risk, liquid savings product. While you own them, they earn interest and provide protection from inflation. Although Savings Bonds are not marketable, in the sense that they cannot be bought or sold in a secondary securities market, they can generally be redeemed for principal and accrued earnings at any time after 12 months. See details below.

7. What amounts of Savings Bonds can I buy using this streamlined tax refund method?
You can buy Savings Bonds in increments of $50. You buy them at face value, meaning if you pay $50 using your refund, you get a $50 Savings Bond. In any single calendar year, you can buy up to a total of $5,000 of U.S. savings bonds of any series whether using your refund or some other method. If you buy $250 or less of Savings Bonds with your refund, then $50 Savings Bonds will be issued. If the amount is over $250, then $50 Savings Bonds will be issued up to $250 and the fewest possible additional Savings Bonds will be issued for the remaining amount in denominations of $100, $200, $500, or $1,000.

8. Could you give an example of how this would work?
Example: Bill is entitled to a $2,500 federal income tax refund. He decides to save $1,000 of the refund by buying Savings Bonds, to save another $1,000 by having the IRS direct deposit that amount to his IRA, and have the IRS direct deposit the remaining $500 to his checking account. Bill gives the IRS these instructions by completing Form 8888 and attaching it to his Form 1040. On the Form 8888, he checks the appropriate checking or savings boxes, gives the IRS the routing and account numbers for his IRA and checking accounts, and completes the information specified in the Form 8888 instructions for the bond purchase. Six $50 Savings Bonds, one $200 Savings Bond and one $500 Savings Bond will be mailed to him.

9. Although Savings Bonds may generally be redeemed at any time, are there any redemption restrictions or penalties for early redemption?
Savings Bonds are designed as longer-term investments, and generally cannot be redeemed during the first 12 months after you buy them, unless you live in an area affected by a disaster, such as a flood, fire, hurricane or tornado. Waivers for areas affected by disasters are announced on the Treasury Direct website. If you redeem a Savings Bond within the first five years, the three most recent months' interest will be forfeited. After five years, no penalty will apply.

10. Will I get actual paper bond certificates?
Yes. Savings Bonds purchased with a tax refund will be issued as paper bond certificates in your name. If you are married and filed a joint return, the Savings Bonds will be issued in your name and your spouse’s name. If you purchase savings bonds for someone else, the bonds will be issued in the name(s) that you listed on Form 8888.

11. Can I buy Savings Bonds for a child, grandchild or someone else using this tax refund method?
In the 2011 tax filing season, when you file your taxes for tax year 2010, you can use your refund to buy Savings Bonds and designate ownership or co-ownership for someone else, such as a child, grandchild or anyone, or elect a beneficiary using Form 8888.

12. How is interest on Savings Bonds calculated?
The interest rate for Series I Savings Bonds combines two separate rates:

• A fixed rate of return, which remains the same throughout the life of the Savings Bond. The fixed rate of return is based on the average market yields of the benchmark 10-year Treasury inflation-protected marketable security, adjusted for the unique attributes of Savings Bonds, such as the tax deferral feature.

• A variable semiannual inflation rate based on changes in the Consumer Price Index for all Urban Consumers. Treasury's Bureau of the Public Debt announces the rates each May and November. The semiannual inflation rate announced in May is the change between the CPI-U figures from the preceding September and March; the inflation rate announced in November is the change between the CPI-U figures from the preceding March and September. Interest is credited on the first day of each month, and interest is compounded semiannually based on each Savings Bond’s issue date.

Or

• Accrual Basis Reporting
You report interest annually each year as it accrues. Once you start, you must continue to report interest earned annually for all savings bonds and notes you own and any you may acquire. This may be advantageous for I Bonds in a child’s name.

• Cash Basis Reporting
Federal tax is deferred until the year of final maturity, redemption, or other taxable disposition, whichever is earlier.

If you choose to report interest annually, you may want to get a copy of Public Debt Form 3501. This table compares the value of your bonds from one year to the next and will help you determine how much interest you should report. The online Savings Bond Calculator at www.TreasuryDirect.gov can also help you determine your year-to-date earnings for the calendar year.

If you choose to defer interest reporting, refer to Publication 550 for instructions.

13. Are there any limits on how long a Savings Bond accrues interest?
The Savings Bond accrues interest until it's redeemed or if earlier, until it reaches final maturity in 30 years.

14. Where can Savings Bonds be redeemed?
Savings Bonds can be redeemed at most financial institutions.

15. How are Savings Bonds taxed?
Savings Bond interest is exempt from state and local income tax. Savings Bond interest is subject to federal income tax; however, taxation can be deferred until redemption, final maturity, or other taxable disposition, whichever occurs first. You also have the option of claiming interest annually for federal income tax purposes. Savings Bonds are not exempt from any applicable estate, inheritance, gift or other excise taxes, whether federal or state. Tax benefits also may be available when redemption amounts are used to pay education expenses.

16. What tax benefits may be available if Savings Bond redemption amounts are used to pay education expenses?
Qualified taxpayers may be able to exclude all or part of the interest earned from eligible Savings Bonds issued after 1989 when paying qualified higher education expenses. Savings Bonds must be issued in the name of a taxpayer age 24 or older at the time of issuance. Other restrictions and income limits apply. For example, for single taxpayers, the tax exclusion begins to be reduced with a $67,100 modified adjusted gross income and is eliminated for adjusted gross incomes of $82,100 and above. For married taxpayers filing jointly, the tax exclusion begins to be reduced with a $100,650 modified adjusted gross income and is eliminated for adjusted gross incomes of $130,650 and above. Married couples must file jointly to be eligible for the exclusion.

17. What if a paper Savings Bond is lost, stolen, or destroyed?
The Bureau of the Public Debt is authorized to replace lost, stolen, or destroyed Savings Bonds. You can file a claim by writing to: Bureau of the Public Debt, Parkersburg, West Virginia 26106-7012. You will need to complete BPD Form PD F1048. You should keep records of your Savings Bond serial numbers, issue dates, and social security or taxpayer identification numbers in a safe place. This information will help speed up the replacement process.

18. What if I want to have a Savings Bond reissued, as in the case where I want to add another individual as a co-owner or a beneficiary?
You can arrange to have a Savings Bond reissued. Under certain circumstances, however, the reissuing will be a taxable event for federal tax purposes and will require the interest earned on the Savings Bonds to be reported as income in the year the reissue occurs.

19. How long will it take to get my Savings Bonds?
Your Savings Bonds are ordered after the IRS completes processing your tax return. Once ordered, it may take up to three weeks for your Savings Bonds to arrive in the mail. If you’re having a portion of your refund deposited directly into your bank account, you may receive your refund before your Savings Bonds arrive by mail.

20. What if there’s a mistake on my tax return?
If you make an error figuring your refund, the bond request is not a multiple of $50 or your refund is offset to cover a debt for any reason, the entire amount of your refund will be sent to you in the form of a check.

21. Whom do I contact if I don’t get my Savings Bonds?
The first step is to check the status of your refund by going to the “Where’s My Refund” feature on www.irs.gov or calling 1-800-829-1954. You can generally get information about your refund 72 hours after the IRS acknowledges receipt of your e-filed return, or three to four weeks after mailing a paper return. If the IRS has processed your refund and placed the order for your Savings Bonds, you will need to contact the Treasury Retail Securities Site in Pittsburgh at 1-800-245-2804 to inquire about the status of your Savings Bonds.

22. I forgot a deduction on my original return and am filing an amended return for an additional refund. Can I split this additional refund?
You cannot split a refund on an amended return. At this time, IRS does not offer a direct deposit option for refunds on amended returns. IRS will mail you a check for the amount of your additional refund to the address shown on your amended return.

23. Can you convert savings bonds to electronic format?
The SmartExchange program offered through TreasuryDirect allows TreasuryDirect account holders to convert their bonds to electronic securities. TreasuryDirect account owners can also convert paper bonds purchased as gifts for someone else. Electronic bonds can be redeemed in full or in part anytime – 24 hours a day, seven days a week.