US Savings Bonds

Posts Tagged ‘savings bonds series ee maturity’

Question: What does the denomination on an EE savings bond really mean?

I have an Us Savings Bond Series EE issued in April of 2008, more than ten years ago, and the denomination on the bond says $100… what does this really mean? if I were to cash it today it’d be worth $76 and I know it was purchased originally for half the denomination, $50… so what is the $100?… any layman explanation of how these work would be greatly appreciated

Answer: Its what the bond will cash for if you hold it to its complete maturity…

Zeitgeist Addendum

Question: Maturity of Savings Bonds?

I have 2 Series EE Bonds that were issued to my daughter when she was born in 1998. She is now almost 9. When to bonds mature? Some people say 7 years, others say 10. It seems pointless to keep them in bond form if they have already matured. I would rather put them in an interest bearing account for her to use.

Answer: Series EE Bonds mature (meaning they stop earning further interest) after 30 years from the date of issue. You can redeem the bonds any time after 6 months from the date of issue. So basically, they are still earning interest now.

The question is do you want to redeem them now? You probably want to consider that (a) if you redeem them now, you’ll pay tax on the accrued interest in the bonds (unless you use the bonds to cover education expenses for your daughter in the year you redeem them) and (b) how much interest/investment return could you get out of the bonds if you redeemed them and invested in something else.