US Savings Bonds

Posts Tagged ‘banking’

Question: Savings Bonds Interest claimed yearly?

I have been claiming my sons Savings Bonds Interest every year since he was born. This hasnt changed our taxes since its a small amount if you claim it each year. Now my son last year cashed the bonds in and received a statement from the bank regarding the full amount of interest. Since the interest was claimed yearly, can I ignore it and not put it on his tax return?

Answer: On Form 1040 schedule B, list an in-and-out. (a zero $ transaction)

Report the 1099 interest amount and then on the line below, reverse the amount (a negative amount) and put a description there saying the interest has been reported before.

Question: Interest rate vs. bond prices?

In order to combat inflation, The Fed would increase interest rate which will depreciate bond prices. Does this action affect short-term, intermediate-term, or long-term bonds and why? I am worried because a significant chunk of my retirement savings is in a total bond-market index fund (intermediate-term). Thanks.

Answer: The only rate the Fed has real control over is the Fed Funds rate which is an ultra-short term (overnight) rate.

What the Fed is doing now is keeping rates artificially low in order to provide liquidity to the markets. When they stop doing that, rates will rise and bond prices will fall. This is the worst time since the early 1980s to own bonds. Get out now.

Personal Finance : How to Buy Bonds

Question: looking for information on a 1939 series postal savings system certificate number 8454. i think its a bond.?

IT IS FROM ST. PETERSBURG, FL(22ND ST. STATION) it is a one dollar. issued date june 10,1954. date when interest begins-july 1,1954. it is a certificate of deposit. please help me find its value or information on it. it was left to me by my great great uncle.

Answer: You can try checking at the unclaimed postal savings site.

http://www.unclaimedassets.com/US13.htm

Genius Funds Can Make You Wealthy !!!!!