Would you cash your savings bonds?? Was: Tell me about savings bonds

[GinaRae]

Mom gave me three $50 savings bonds from '86, '87, and '90. What now?

One's got the wrong SS# on it

***UPDATE***

Hubby's looking it up for me now online somewhere.

They're worth $61.96, $71.18, and $72.60 = $205.74. That's not much for 17, 19, and 20 years, huh?

Now the question is: do I cash them? What would you do?

I am thinking I should just cash them. I know I SHOULD let them sit around for another 20 years, but by then they will only be worth around $90 each I guess. That doesn't seem worth keeping them in good condition and un-lost to me.

[velochic]

What kind are they? When do they mature?

[GinaRae]

They say United States Savings Bond Series EE, but nothing about a date they mature other than they can be cashed 6 months after the issue date. I don't know if they're supposed to cash for MORE than the $50 or if it is just $50 each.

[GinaRae]

Nevermind! Hubby's looking it up for me now online somewhere.

They're worth $61.96, $71.18, and $72.60 = $205.74. That's not much for 17, 19, and 20 years, huh?

Now the question is: do I cash them?

I am thinking I should just cash them. I know I SHOULD let them sit around for another 20 years, but by then they will only be worth around $90 each I guess. That doesn't seem worth keeping them in good condition and un-lost to me.

[lilgsmommy]

I dont know which savings bonds we had, but ours ended up being cashed, because they would have reached age of maturity in a few years and they would have only been worth around $5 more each.

[Iris' Mom]

Usually, bonds mature at the face value. So, when they matured, they would have been worth $50. I guess that means they already matured. I don't know what the rate of return is after maturation, but I'm guessing it's pretty low. I would cash them. Just bring them to the bank.

[Kealli]

I had some savings bonds that i cashed recently. When you look it up, just make sure you aren't a week away from the next time it gains money. They gain every so often.

[pbjmama]

EE bonds that have a face of $50 were purchased for $25.
If they were my bonds I would cash them in.

[shanetedissac]

I am in the process of cashing all my kids savings bonds. As you said bad investment! We are putting the money in to their 529 plan that is actually building money tax free. I have convinced my dh mother to stop giving them and just give cash. Cash them out!

Be well,

[GinaRae]

Shane, can you explain more about why you feel it's a bad investment?

I was talking to hubby tonight and it actually seems like a good short term investment strategy. Buy them for $25 and cash them when they mature at $50. Thoughts?

I didn't know all of that - I assumed they were bought for $50 and had barely gained $$.

[mamamilkers]

Originally Posted by shanetedissac

I am in the process of cashing all my kids savings bonds. As you said bad investment! We are putting the money in to their 529 plan that is actually building money tax free. I have convinced my dh mother to stop giving them and just give cash. Cash them out!

Be well,

I keep meaning to do this with both of my DD's bonds, I just haven't gotten a 529 set up yet, so I'm sitting on them. If I remember correctly you can cash them in a year after you get them.

[northwoods1995]

Originally Posted by shanetedissac

I am in the process of cashing all my kids savings bonds. As you said bad investment! We are putting the money in to their 529 plan that is actually building money tax free. I have convinced my dh mother to stop giving them and just give cash. Cash them out!

Be well,

I don't mean to hijack this thread with my own question but my kids have a couple of bonds with only their name and SSN on them. Are my husband and I able to cash them? We asked at our bank and they told us only the kids could cash them at age 18. Is that correct?

[inthezoo]

When dh was a child his parents had him sign his savings bonds so they could cash them out. Perhaps your banker was just trying to protect your children's financial interest not knowing what you intended to do with the money. Maybe they just need to be old enough to sign them first.

[velochic]

Yeah, I'd cash them in. The main advantage of them is that like deposits in a bank (FDIC insured up to $10,000), they are backed by the government. For all intents and purposes, it is guaranteed money, as opposed to the stock market, which can potentially make you lose your shirt.

The reason they are a very, very BAD investment is because the interest that is guaranteed is not even equivalent to inflation. That means that if you pay $25 for a $50 bond, when it matures and you can cash it in, the buying power isn't $50... it's more like $20. So, it is only one step up from putting the money under your mattress. You are better off utilizing a high-yield savings account, money-market account, or CDs.

[mamamilkers]

Originally Posted by northwoods1995

I don't mean to hijack this thread with my own question but my kids have a couple of bonds with only their name and SSN on them. Are my husband and I able to cash them? We asked at our bank and they told us only the kids could cash them at age 18. Is that correct?

I just googled this because I was curious, as most of my DD's bonds only have their name on them. Here's what I found at a University of Washington site:

2.1) Can I cash bonds registered in my daughter's name if: (1) I'm not named as co-owner, or (2) I'm listed as the beneficiary and my daughter is living?
Yes, if the child is too young to sign the request for payment and understand the transaction, payment can be made to either parent with whom the minor lives (or to whom legal custody has been granted). The request would be made on the back of the bond as follows:

"I certify that I am the parent of Jane Doe with whom
Jane Doe resides (or to whom legal custody has been
granted). She is ___ years old and is not of sufficient
understanding to make this request.
John Doe on behalf of Jane Doe"


Local financial institutions that redeem Savings Bonds can pay bonds in the circumstances outlined above. When a local institution is unwilling to use this optional authority to redeem bonds, the signature of the person requesting redemption can be guaranteed or certified at a bank or financial institution, and the bond is sent to the nearest Federal Reserve Bank that handles Savings Bonds. Note: If your child is old enough to understand the transaction and sign the request for payment, she can cash the bond herself if she provides the required identification.

[annethcz]

Oooh, good thread. IIRC, they stop earning interest/gaining value after 30 years. And I have a bunch of bonds somewhere from parents and grandparents.... I need to ask my mom about it at Christmas time and find out where they are so I can cash them.

[polyhymnia]

Just remember to keep the info on cashing them until tax time, you will need to put the interest on your taxes. Your bank should give you a slip of paper with the details when you cash them in I am pretty sure!

[TattooedMama]

Totally cash them. They will never amount to much. I cashed mine fom my childhood and only got a couple hundred dollars.
I paid a few bills with it.

[TattooedMama]

Originally Posted by velochic

The reason they are a very, very BAD investment is because the interest that is guaranteed is not even equivalent to inflation. That means that if you pay $25 for a $50 bond, when it matures and you can cash it in, the buying power isn't $50... it's more like $20. So, it is only one step up from putting the money under your mattress. You are better off utilizing a high-yield savings account, money-market account, or CDs.

I just wanted to repeat what she said. :

[rachelagain]

I just looked up dc's bonds and it says they are gaining 4.11% interest-- which isn't bad. Because isn't inflation 3%?

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