She noted that while "banks are giving you a quarter of a percent or a half of a percent. Savings bonds give you 5.5%. That’s the difference between getting $12 or $24 on a $1,000 investment after five years and getting $300 plus.”
Bishop further explained that savings bonds are an investment with a pre-calculated end value, which is referred to as the nominal value. The buyer can determine the amount of money they want to end up with and buy that amount in bonds.
“So when you buy a $100 bond you are not paying $100. You’re paying $76.24 and over a five-year period the value of your investment increases until you get the $100. When you buy savings bonds, you are buying what you want to end up with and paying less than that upfront.”
With that in mind, Loop hit the streets of Bridgetown to find out what the average consumer would do with $100.