Savings Bonds

To further protect your online security, active links from Q&A has been disabled!

What is the best way to set up a savings plan for a newborn? This would be a gift for a great nephew. Are government bonds a good way to go, and if so, do I need the baby's SSN?

Best Answer

You need the baby's SSN. I set up a Coverdell Education Savings account at Scottrade. I also buy e-Series savings bonds at the Treasury dept http://www.treasurydirect.gov/indiv/products/ prod_eebonds_glance.htm You can also set up a UTMA/UGMA account at Scottrade, if the custodian is not you or your husband, the gains are taxed at the baby's tax rate. although they might have changed that. Ask around. I prefer Scottrade for most accounts, because they have no fees when done right. But you can set up these types of accounts with almost any investment company or bank.

I have a few savings bonds (double e series) from the 80's. They have now reached maturity so I would like to know what's the best thing to do with them - open a money market saving account, invest in stocks, IRA's, etc?

Best Answer

That really depends on the value of them. Also, did you know that savings bonds earn interest for up to 30 years? Just because they have matured (reached face value) does not mean you have to cash them in right away. For more information on savings bonds themselves, please go to www.savingsbonds.gov and click on the personal/individual link on the left of the screen. If you have a sizable amount, you might think about investing in a certificate of deposit (CD), or like you said, maybe invest in stocks or perhaps mutual funds, which are a less risky investment than stocks.

What should I do with Savings Bonds after they have hit Maturity. Some tell me to leave them alone and some tell me to cash it in and get new Savings Bonds with them? It's my 6 years old son- his great-grandma gives Savings Bonds for his Birthday every year

Best Answer

You aren't earning much interest with savings bonds. The only incentive would be the no tax distribution if it's used for education expenses. It depends on the type of saving bonds though. So do more research on the particular type you have and compare the interest rates and the potential tax savings. Essentially DO THE MATH.

Should I keep the savings bonds that have matured or cash them in twords a higher dollar valued bond?

Best Answer

First make sure your bonds have stopped earning interest. Many bonds pay for 30 years and some are extended. The attached link will give you the current value of your bond as well as the maturity status. Many older bonds actually pay higher interest rates than newer, so exchanging them for new ones may not be a good idea if the old ones are still paying interest.

I would like to get a savings bond of some sort for my 3 yr old neice. My aunt and uncle got me two different series EE savings bonds in 92 and 93 for $50. They spent $25 so now one is worth $43 and the other $56. What other options do I have besides the kind I received when I was a child? I want to spend $50-$100, but I don't want her to have to wait until she is 30 years old to get the full amount. Thank you in advance for your answers!!!

Best Answer

Go to the savings bonds website (link below) and you can research the various types of bonds and options.