US Savings Bonds

Posts Tagged ‘savings bonds series ee value’

Question: If I redeem my Series EE Savings Bonds for cash, what percent of the interest is taken out for taxes?

Say my bonds are worth $3000 and the interest earned on them is $1100, bringing their total value to $4100. If I redeem them now, how much will I receive?
How much will I have to pay on the tax form…I’m a minor.

Answer: You will owe federal income tax at your regular rate. The interest will not be subject to state income tax.

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: Savings Bond advise?

I have been purchasing Series EE Bonds for about 2 years now, one $100.00 bond every month. I have 23 bonds. Should I start alternating with I Bonds? I know the EE Bonds stop losing interest at 30 years. Does that mean that the value only goes to $100.00? Or does it go above that? I need to know if these are good investments.

Answer: Contrary to the 1st responder you bonds continue to earn interest for 30 years. And at that time they will be worth much more than $100 each. You can go to here to find out the scoop.

http://www.treasurydirect.gov/indiv/products/prod_eebonds_glance.htm

I Bonds would be an alternative to consider. They of course are inflation protected.

Are they good investments? Not too good in my opinion. The return is very low. It is a decent way to save money that will not be tempted to spend but in my opinion a better approach would be to investigate investing with American Funds. If historic returns hold true, you will wind up with about 8% better return annually.

http://www.americanfunds.com/funds/returns/alphabetically.htm