US Savings Bonds

Archive for June, 2008

Question: My son used all of his Savings Bonds for a bed..?

He is starting college this year and all his Savings Bonds we’ve got him since he was born where for education. He just cashed in $1000 in bonds to buy a bed. Should I be mad? He is moving to Nashville (200 miles away) for school and getting an appartment there with his friend, and said he needed a bed. He has been sleeping on an old futon mattress on the floor, and has never had a new bed. Should I accept how he spent the Savings Bonds, or be mad at him? (the bed was only $800 so he still has $200 left)

Answer: well it is his money was that stupid yes but honestly you can’t do anything about it you gave that to him you thought he would of been a little smarter but he wasnt so no use to get mad over it it’s done and over with. At least he bought a bed and not something really obsered. At least he’ll sleep good!!

buy a share in america – defense Savings Bonds and stamps 1940s

Question: Are US Savings Bonds cash equivalents?

I’m working on a accounting problem where I have to verify that a list of assets are cash equivalents. I pretty much have it all worked out except for US Savings Bonds. Can these be considered cash equivalents? Is it possible for them to be liquidated within three months? If they wouldn’t be considered cash equivalents, how would you classify them?

Answer: US Savings Bonds are redemable at any point – but their value has to be determined by a table that only the banks have. Face Value is only upon maturity date, and Bonds have a 25 year life. For Example – you purchase a 25.00 savings bond – the bond will cost you 12.50 – and earn 1.5 interest per year, so the first year’s interest earned is $.19 cents.

Bond Investing : How Do Treasury Bonds Work?

Question: are savings in fixed rate bonds covered by the 48k security limit for investments?

if a company goes bust are the bonds covered up to a maximum of 48k

Answer: I assume you are not in UK (here the Government ‘insures’ the first £35k of your savings held with each (FSA Registered) savings institution) … however I assume a Bond Holder in a listed Company stands before Share Holders anywhere in the world, so has a better chance of getting their money back in the event of a bankruptcy ..

Some Bonds are issued against specific assets (or asset classes – eg. sub-prime mortgages ) .. in this event, should the company default, the assets can be sold to recompense the Bond holders ..

How to find the best ISA for you!