US Savings Bonds

Archive for October, 2009

Question: Savings account investment with NZ or AUD?

Hey guys, I was looking over some investment options and foreign currency saving accounts came into the picture. This graphing tool posed some questions.

http://www.oanda.com/products/fxgraph/fxgraph.shtml

select NZ and AU and compare them with SGD (singapore dollar)

as you can see, both graphs will rise steadily with time, with the regular business cycles factored in.
Some questions:

1)What does a rise in currency exchange rate mean?

2) Does it mean that the SGD is getting weaker over time relative to the NZ/AUD?

3) If it is getting weaker, is that an advantage in a F.C. savings account?

4) How does an interest rate in a savings account move with the movement of the currency exchange rate?

5) Finally just a side topic, why do bond interests rise (which is good for us holders) when there is inflation? Does it apply to a stagflating economy too?

Thanks for all the help! That was long question haha

Answer: Congratulations……. you’re looking at one of the most dangerous market places on the planet. Most purchases/sales are done at margin (at levels from 100X – 200X).

Unless you’ve got years of trading experience I would not get involved.

If you “must” get into foreign currency, check out;

http://www.everbank.com/

(go to their WorldMarkets area)

1975 “Grandson” US Savings Bonds Ad Council PSA

Coverdell Education Savings Account or ESA for short has an advantage when US Savings Bonds are concerned. This section of Us Savings Bonds Information website discusses Coverdell Education savings accounts and US Savings Bonds. 

What is a Coverdell Education Savings Account?

A Coverdell Education Savings Account (ESA) is an account created exclusively for the purpose of paying the qualified education expenses of a child who is designated as the beneficiary of the ESA. 

For whom may a Coverdell Education Savings Account be established?

A Coverdell education savings account ESA may be established for the benefit of any child under age 18. 

Contributions to the Coverdell education savings account ESA will not be accepted after the child reaches his/her 18th birthday. 

This age limit does not apply to special needs students. A Coverdell education savings account ESA may also be established for a family member of an Coverdell education savings account ESA beneficiary to receive a rollover or transfer of the beneficiary’s Coverdell education savings account ESA. 

The family member must be under age 30 unless the transfer is due to the beneficiary’ s death, divorce or a court-ordered separation. 

This age limit does not apply if the family member is a special needs student. 

When may Contributions to a Coverdell Education Savings Account ESA begin?

Starting in 2002, Coverdell Education Savings Account ESA Contributions for a year may be made any time from the first day of the year until the due date (without extensions) of the contributor’s federal income tax return for the year.

Question: How long before a series EE US Treasury savings bond matures? Does it earn interest after maturity?

My children get Savings Bonds every year for birthdays, holidays, etc… How do you know when they have matured to face value? Do they earn interest after they mature, and if so at what rate. Thank you.

Answer: Check the links below for answers to this and other questions…

Epstein and Taylor: Are we all Keynesians now?