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Savings bond questions

post #1 of 8
Thread Starter 
My son got a couple of savings bonds as a baby. I know nothing about savings bonds, but wondering if I should cash them in (not even sure how THAT works) and just deposit the money to his ING bank account. I just don't know much about when the bonds mature, and interest rates and so on!
post #2 of 8
Savings bonds often take more than five years to mature. Is there a maturation date on the savings bond? If not, you should be able to go to a federal government website and search for the type of bond to find a maturation date.

As for cashing it in, bonds do earn interest. Basically they need to reach the maturation date to be worth their stated value. After that they earn interest on the stated value. I have cashed in bonds that were around 20 years old that were valued at $25 but after interest earned me a few hundred dollars. The only trick is to not keep them past 30 years. My dad just told me that after 30 years they are worthless. So the longer you hold on to them the better but just don't forget about them!
post #3 of 8
Quote:
Originally Posted by MissLotus View Post
My son got a couple of savings bonds as a baby. I know nothing about savings bonds, but wondering if I should cash them in (not even sure how THAT works) and just deposit the money to his ING bank account. I just don't know much about when the bonds mature, and interest rates and so on!
We get them from the grandparents, I do not like savings bonds at all. I cash them in just as soon as possible (I think a year from issue date) and it goes into their 529 account. MUCH better earnings.
post #4 of 8
check with your local bank branch. they will be able to tell you how much the bonds are worth. they have low rates of return but they are secure investments. minimal risk equals minimal growth...
post #5 of 8
forgot to ask what series are they ?
post #6 of 8
Check out the site... you can look right on the internet what they're worth.
http://www.savingsbonds.gov/
post #7 of 8
definitly check out the site mentioned above but basically they are a waste in my opinion

I work for a credit union so I sell bonds if people want them
Right now you can buy a series EE bond or series I bond
both bonds you have to wait a year to cash out and if its a EE bond after 1 year it wont even be worth face value (if the bond says $50 the buyer paid $25 and after 1 yr it wont even be at the $25)
Bonds purchased in the past 3 years take 18yrs to mature
Like I said they are not worth it, so either save it for 30yrs to get an ok return or cash it in after a year for a very small amount maybe not even face value and invest it somewhere else
CD's are your highest return at the moment, some banks have kids CD's that require less money to open them with

done babbling!
post #8 of 8
Thread Starter 
Thanks, everybody! I just looked at that site and though they're $50 bonds from 2001, yeah, they're only worth $30 each right now. So I guess there's no point in cashing them in right now but I certainly will not be investing in any myself! TOO SLOW.
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