US Savings Bonds

Posts Tagged ‘baby’

Question: What’s the deal with EE Savings Bonds?

I recently got 4 of them as a gift, what do i do know or how long i keep it and why

Answer: They are worth about half the face value. Go to any real bank and ask about it. I suggest that whom ever gave them to you was trying to instill a sense of savings to you. You should respect that! I believe they will reach face value in 7 years or so. The bank teller can help you.

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Question: Savings bond as wedding or baby shower gift for the child’s college education?

A casual work friend of mine is getting married but she is pregnant and already has two other children. (She’s 22) I was going to buy her a little something for her new baby as well as a wedding gift. I was thinking instead of buying something seperate for both occasions and her wedding shower of spending around 75-100 dollars on US Savings Bonds for her children’s college education.Would this be a thoughtful gift or seen as rude or tacky? She is a school cook and he is a school bus driver and she has told me she worries a lot about her kids going to college someday. They live together for several years and she has said she doesn’t need anything for the home and is asking for only cash and she says she only needs cash for the baby as she already owns many baby things. I was thinking this would be more thoughtful than cash.

Answer: http://www.finaid.org/savings/529plans.phtml

http://www.sec.gov/investor/pubs/intro529.htm

Wisest thing to do? Introduce your friend to your state’s 529 plans.

These prepaid tuition plans are wonderful. And if she starts paying by installments while the children are young, the payments will be very small.

As the first site says, ” . . . prepaid tuition plans are operated by state governments, with the tuition guarantee based on an enrollment-weighted average of in-state public college tuition rates. A few have separate plans for two and four year colleges and for room and board. If the student attends an in-state public college, the plan pays the tuition and required fees. If the student decides to attend a private or out-of-state college, the plans typically pay the average of in-state public college tuition.”

If the child decides not to attend college? Eventually, the money is returned to the now-adult child. He/she could use it for a wedding . . . or a down payment on a house.

I strongly suggest you urge your friend to investigate 529 plans. As your gift, perhaps you could make the first payment?

If you do disregard my advice (which is fine, your choice), I suggest you put only your own name and the child’s name on the bonds. If a parent’s name is on the bonds, it is quite likely parent will cash the bonds . . . long before child is ready to attend college.

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Question: Savings Bonds? Do they only double?

I have Savings Bonds from family memmbers when I was a baby- give or take that these bonds are anywhere from 20-28 years. Is it true they only double after 18 years or can there value be a little more? I have about 800 dollars in bonds from 1980-88

Answer: If you go on the US Treasury web site it will direct you to Savings Bond Wizard. You can enter the information from the bond into the Wizard program and the Wizard program will tell you how much the bond is worth.

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