US Savings Bonds

Posts Tagged ‘Savings Bonds’

Peter Schiff Was Wrong – Part 12

Question: My daughter received a savings bond gift certificate, what do I do with it?

My daughter received a savings bond gift certificate but I’m not sure what I do with it. It is a piece of paper saying what it is worth but it doesn’t say home to redeem it. Do I just take it to the bank and they give me the real one?

Answer: You should get a safe deposit box in her name and put it there. Bonds are worth the face value after a certain time has passed, so unless it’s mature then you’ll need to hold on to it. Grandparents like to send those to their grandkids to help save for college etc, you pay less for them when you buy them and they get more valuable as they mature.

Top 10 Signs you’re not reading your Bible enough

Question: Series E/EE Savings Bonds – what is the difference between paper and electronic bonds?

I have read that the paper bond costs half of face value, but the electronic bond costs the actual face value. Which is the better investment? And does the interest accrue the same way?

Answer: http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds.htm

Both the paper and electronic EE bonds earn the same fixed interest rate (currently 0.70%).

Example:

If you buy a $50.00 paper EE bond you pay 1/2 face value so you start out earning interest on $25.00.

If you buy a $50.00 electronic EE bond you pay full face value so you start out earning interest on $50.00.

Bond Investing : How to Determine the Selling Price of Bonds