US Savings Bonds

Posts Tagged ‘interest rates’

Question: Savings Bonds: What is the difference between EE bonds and I Bonds?

I have purchased both I Bonds and EE bonds in the past, and it seems like the interest rate on I Bonds is much better. Why is that?

Answer: I Bonds are a better choice because they are adjusted twice per year for inflation. In the simplest terms, the interest rate will be much better that the EE bonds. The EE bond now are at a fixed rate which means that the life of the bond will be at whatever rate in which you brought it. It wasn’t like that in the past for EE bond. That change was recently made. I Bonds can be redeemed in 5 years without forfeiting any of the interest. If you redeem sooner, you will loose three months worth of interest. With both bond, you are only taxed on the federal level, not state. You can also be tax exempt for both bond if you use them for qualified educational expenses.

Treasury Direct is an excellent website for learning about and purchasing these bonds.

Peter Schiff: The Crisis Starts Now!

Question: How much will a 14 year old $100 dollar savings bond be worth now that I am 18?

My dad had opened a savings bond was opened up for me in 1995, I am turning 18 in a few days and I am going to cash it but I have to wait until I am 18. Does anyone know how much it will be worth with interest? It is a 14 year old savings bond and my dad said it could be worth a couple of thousand but then again I have haerd that interest rates with Savings Bonds are not as good as they used to be.

Answer: http://www.treasurydirect.gov/BC/SBCPrice
Use the calculator to determine the current value of your savings bond.

Examples:

A $100.00 U.S. Series EE Savings Bond issued 01/1995 is currently worth $90.72

A $100.00 U.S. Series EE Savings Bond issued 07/1995 is currently worth $85.60

A $100.00 U.S. Series EE Savings Bond issued 12/1995 is currently worth $83.36

7. Borrowing Money

What are the interest rates on Series EE Savings Bonds?

How long must I hold a US Savings Bond?