US Savings Bonds

Archive for September, 2009

Question: What’s Better- Bonds or Cert of Deposits?

I have been saving change for my grandkids and have over $50 for each right now. Our local credit union has certificates of deposit that can be purchased for children for as low as $50 minimum. Am I better off buying US Savings Bonds or opening the CD accounts? The CD’s would have to be in the childs name, parents name and I could also be listed… the problem is I don;t trust my daughter in law not to cash the CD’s. If I buy bonds am I able to put them in my grandchildren’s names and my name to make sure they don;t get cashed? We don;t have a lot of money, and I was never able to save for my own kids so I would really like to be able to keep building a small nest egg for my grandchildren.
999- the link is bad

Answer: Open an account at the credit union in your name as custodian for the kids. That gives you control.

Commute Another Way 2010:Our Stories

Question: Is there a table that shows the current value of US Savings Bonds?

I have US Savings Bonds from 1983 and newer. I want to find out if they are still accruing interest and their current value.

Answer: Here’s the government site that handles treasury bonds…

http://www.savingsbonds.gov/indiv/tools/tools.htm

Nine guys, one BIG bet!

Question: When a person redeems US EE Savings Bonds, how are the taxes paid?

Is the interest put in Section B, Interest, OR does it have to be put under Capital Gains Interest? What would the interest rate be ?

Answer: Series EE bond interest earnings are reportable for Federal income tax purposes for the year in which the bonds are redeemed. Alternatively, the bond owner can elect to report interest each year as it accrues; however, such an election must apply to all of the owner’s accrual-type securities.

Smart Financial Planning – Review of the Weekend’s Papers – 1st September 2009