How Do Saving Bonds Work?

Updated on July 26, 2013
D.D. asks from Goodyear, AZ
6 answers

My childrens grandparents purchase saving bonds for them. I understand that you take them to bank and cash them in.
What is the best time for that?
What should we watch out for?
What is good and bad about them?

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More Answers

C.O.

answers from Washington DC on

Go to: http://www.treasurydirect.gov and search for EE Savings Bonds...or you can use this link:

http://www.treasurydirect.gov/indiv/research/indepth/ebon...

You can type in the bond number and find out its value.

Keep them safe. Keep the numbers in a different location than the bonds - so in case of theft - you can get them replaced.

It's a slow growth savings...you buy a bond for $50 - and in 7 years - it's worth $100. I think - don't quote me on that...I know it takes several years - like 5 or 7 - for them to "mature"...

I would keep them and keep purchasing them over the next several years and save them for college. Yeah, it might be small - but you never know how much you are going to be able to save.

4 moms found this helpful

J.W.

answers from St. Louis on

Don't quote me on this but they stop earning anything after 20 years so don't keep them longer than that.

They have changed the rules though I can't remember the reason beyond it was BS. You can no longer gift bonds to kids because the social security number put on them must be the purchaser.

I think they are rather worthless myself.

1 mom found this helpful

T.F.

answers from Dallas on

You can track your bonds online and it will let you know when they mature. I have a list of them on the website with the numbers and the original savings bonds are in the safe.

We have several for my daughter and I just track them about every 6 months to a year. Basically, put them in the safe and forget about them for years.

They are not the greatest investments in the world but they can help in a time of need like college, etc.

We really appreciated it when our daughter was given bonds.

1 mom found this helpful
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M.!.

answers from Phoenix on

My kids have Savings Bonds and we will let them sit until they go to college. They mature several years after purchase and continue to earn interest for years. Check out the link I attached for helpful information.

http://banking.about.com/od/investments/a/SavingsBonds.htm

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K.M.

answers from Denver on

Yes, go to treasury direct.com. You CAN buy them for kids. The parent just has to set up an account for them through treasury direct. If you still have the paper bonds you used to be able to take them into the bank and cash them, though I am not positive that is still the case. You may have to go through treasury direct. They collect interest for up to 30 years they usually mature in 10-16 yearsish depending on interest rates. They are slow earning things but I do like them for young kids.

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O.O.

answers from Kansas City on

They double in value over a certain # of years. No more, no less.

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