US Savings Bonds

Posts Tagged ‘investment’

Question: What amounts are Savings Bonds available in and when do they mature ?

Since our home is nearly paid for I am now considering things to do with the money we will be saving after total repayment of the current home mortgage .
Now my query is what amounts are Savings Bonds available in and when do they mature .
I know that they used to be available in $25.00 ( at maturity would be $50.00 ) because my parents paid for my college education with Savings Bonds .
I think this would be a good investment for our up comming retirement years altho I am still on the border line between Savings Bonds and certificates of deposit and need many details about them both .

Answer: it depends on the series bond you buy. They can mature in as short as 15 yrs and as many as 30.

What you are doing is buying the face value of the bond at a discount… IE paying 12$ for a $50 bond that matures in 30 years….

You can always cash them out early, but you wont receive full face value for them….

oXYGen Financial – Breathe Easier® About Your Financial Future – Atlanta Georgia

Question: Can someone please explain this savings bond calculation?

I was given a Series EE Savings Bond in the amount of $100.00 in 07/1991. I’ve used two different online calculators to estimate how much my bond is worth now (18 years later). This is the answer I received from both locations:

Series: EE
Denomination: 100
Issue Month: 7
Issue Year: 1991
Current Value: $128.92
Interest Earned: $78.92
Rate: 4.00%
Yield: 5.33%
Next Interest Date: 1/1/2010
Final Maturity Date: 7/1/2021

How is it that the bond earned $78.92 in interest but is only worth $128.92? It appears as if my $100 savings bond only earned a total of $28.92 over 18 years (which, IMO, is pathetic). Am I understanding the calculator incorrectly?

Thanks.

Answer: Who ever gave you the bond only paid $50.00 for it. that’s the difference.
The Banks have the official government calculations, you can call on on their 800 phone # and they should be able to give it to you. Hey 4%was nothing back in 1991 but it sure looks good now. Hold on to that bond unless you really need the $$

Iran-Contra Hearings Day 3: Richard Secord Testimony Part 8 – TOW Missiles Sales (1987)