Savings Bonds...help please

[Tiggerlover91]

Just a quick question. Does anyone know the normal amounts for savings bonds? Is it a standard amount or does it vary depending on what the person wants?

 

[disneychrista]

I am pretty sure they come in set amounts. $50, $100, $200 etc.

 

[jfulcer]

I think they are $50 increments. I could be wrong. Did you know you can buy them directly from the government over the internet??? I didn't. Check this out:Treasury Department

I just wanted to edit this and add: This site allows you to setup and online account with the treasury department to buy (and keep) bonds. That way you don't need to worry about losing them. Pretty cool!

Ok, just edited again. You can buy any amount you want over $25. You could buy a bond for $34.65.

 

[Tiggerlover91]

Do they gain interest? I apologize, I just have no idea how it works.

 

[aprilgail2]

It takes 18 years for the savings bond to reach the face value of the bond then it will gain interest...I really don't bother with them since 18 years is a long time before they mature, I would rather but the money into my daughters college fund, at holiday time my brother, mom and some relatives all put money into it for her to, I prefer that over savings bonds.

 

[my3kids]

You buy them at half the face value...pay $25 for a $50 bond.

 

[WDWAurora]

All mine that I was given as a child matured in seven years...which meant they were ready in plenty of time for college. I haven't cashed them in yet (they continue gaining value after they reach face value) and hope that they help my parents pay for my wedding, since college is basically over!

 

[skuttle]

All the info you need on savings bonds can be found HERE

My DS's godparents give him savings bonds for everything. They still give toys/clothes/etc, but there's always a bond, too. We just set up the online account so hopefully that will work out and we won't have to keep track of the paper bonds.

 

[RUDisney]

Series I bonds are a better alternative to Series EE bonds. Series EE are bought for 1/2 the face value and mature to full face, then gain interest for only a specific period of time.

Series I bonds are bought at face value and earn interest based on the inflation rate. This rate is typically higher than the Series EE rate.

 

[HomeToPIT]

You can buy savings bonds on-line using a credit card until December 30. This is a great way to get some frequent flier miles using a credit card from an airline. Or use American Express and get membership rewards points or cash back.

This has been a kind of loophole for the past few years for us mileage collectors. The minimum that you have to keep bonds now is 12 months, but it used to only be 6.

You would buy bonds via credit card, keep them for 6 months (now a year) cash them in and use the proceeds to buy them again. I used to churn bonds this way all the time.

The limit is $30,000 for each year on I bonds. It used to yield 60,000 miles a year which was enough for 3 round trip tickets. Great for those last minute trips that would normally cost upwards of $1200.00.

The program ends on December 30 of this year. If you are thinking about buying bonds, now is the time! Even for a couple of $50.00 bonds.

The URL for the website is:
http://www.publicdebt.treas.gov/ols/olshome.htm

Peace

 

[Tiggerlover91]

Originally posted by aprilgail2
It takes 18 years for the savings bond to reach the face value of the bond then it will gain interest...I really don't bother with them since 18 years is a long time before they mature, I would rather but the money into my daughters college fund, at holiday time my brother, mom and some relatives all put money into it for her to, I prefer that over savings bonds.

I only ask because I have some savings bonds coming to me. My DM and DD got them for me back when I was very young. I can remember going to the bank with my mom and her mentioning something about my bonds. They are paper I'm assuming. 18 years has long past as I remember being in elementary school then, so well over 25 years have passed. I'm 34, so the math isn't hard to do.
Thanks for all the help. I guess when I receive them, I can just go the bank and ask them the value...can I do that?
Thanks again,
Denise

 

[RUDisney]

My bank subscribes to BondPro for automated calculations on the value of bonds. Your bank will definitely be able to tell you the value and to cash them in for you.

 

[Pin Wizard]

Originally posted by WDWAurora
All mine that I was given as a child matured in seven years...which meant they were ready in plenty of time for college. I haven't cashed them in yet (they continue gaining value after they reach face value)

That's my understanding of DS's. I still have all of his. It's not something I would go out and buy, but he got a bunch when he was born, baptism, etc.