US Savings Bonds

Archive for the ‘Savings Bonds Maturity’ Category

Question: WHY ARE us Savings Bonds taxed after maturity?

Answer: it’s part of the deal! that’s the problem with bonds, hard to keep up with inflation after taxes.

US Savings Bonds Scam

Question: calculus relate to finance problem(easy)?

1.Sandeep purchases Canada Savings Bond(CSB) valued at $2500 earning simple interest at an annual interest rate of 1.65%. Assuming that the interest rate does not change for the next 1.5 yrs, how much have Sandeep’s CSB earned in interest during that time?

2. Ching decides to invest in a Guaranteed Investment Certificate (GIC) short term for 60 days earning simple interest at an annual interest rate of 2.25%. How much money must Ching invest if he hopes to have a maturity value of $20,000?

Answer: 1. How ofter is the annual interest compounded? monthly, quarterly, annually? I’m assuming not continuously because this sounds like CSB would like to keep some money.

2. Same question (except it’s probably compounded daily or weekly)

i’ll finish if you finish the question

Question: Question about Savings Bonds?

When my daughter was in elementary school, she won two $50 Savings Bonds. She is now grown, but we don’t know how Savings Bonds work. Do you cash them in or is it better to let them mature? Can someone explain.

Answer: Cathee,

I will assume you have EE bonds aka Patriot bonds. I would let the bonds mature unless you are going to use them for college education (if use for college, tax free). The are not subject to local or state tax but they are taxed at the federal income tax rate of the redeemer. I have gathered some info for you. Vote this one the best answer!

Series EE Bonds are among the most popular of Treasury securities. The face amount printed on the bond is known as its denomination, which ranges from $50 to $10,000. EE bonds are available in paper or electronic form. Paper EE bonds are sold at a discount equal to one-half of the face value of the bond. In other words, a bond with a face value of $100 would cost you $50. Electronic EE bonds are issued at face value starting at $25.

Instead of paying interest to bondholders, EE bonds are a form of zero-coupon bond. This means that the value increases in set increments and continues to gain in value for as long as you own it or until it matures.

You can hold EE bonds for 30 years or cash them in (redeem them) before that time. The original principal plus accumulated interest is payable upon redemption.

You must hold Series EE Bonds a minimum of one year, and there is a three-month interest penalty for the redemption of bonds held less than five years. EE bonds are limited to $30,000 per person per calendar year. You can redeem your bonds at most banks.

If you have Series EE Bonds or Series I Bonds, you generally pay any income taxes in the year you redeem the bonds or at maturity, whichever comes first. The difference between the purchase price and the redemption value is taxable interest.

To find out what your governments Savings Bonds are currently worth or whether they’re still paying interest, go to TreasuryDirect’s website at www.publicdebt.treas.gov/sav/savrdtbl.htm.

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