Savings Bonds...

Discussion in 'Horn Depot' started by Bevo5, Dec 28, 2008.

  1. Bevo5

    Bevo5 1,000+ Posts

    So my wife's grandmother gives us series EE savings bonds for every possible occasion...and has been doing so for a while now. I was just looking at their current values online and we're getting something like 3% on average in interest.

    Is there any reason to keep these things as bonds and not just redeem them? We could just put the money in an ING account and get 3.25-3.4% or whatever the current rate is.

    Is the interest I earn on the bonds tax free? Thing is, we don't really need to redeem them for use...but just having them sitting here seems weird since they've got like 20years or so left until their mature.
     
  2. SullHorn

    SullHorn 100+ Posts


     
  3. chango

    chango 2,500+ Posts

    I think the interest is tax free if used for tuition.
     
  4. KazooMan

    KazooMan 250+ Posts


     
  5. Larry T. Spider

    Larry T. Spider 1,000+ Posts


     
  6. Larry T. Spider

    Larry T. Spider 1,000+ Posts

    Just got lowered to 2.5% [​IMG]
     
  7. Bevo5

    Bevo5 1,000+ Posts

    Well crap...I guess I should just hold onto them. Hell, by the time they mature we might have a kid about to go to college so I could use them for tuition then.

    Screw it...

    Thanks.
     
  8. Chult86

    Chult86 100+ Posts

    Actually, depending on how old your kid is, you have another option.

    I work for Bankers Life & Casualty, and one annuity we have is a 5year, 4.2% fixed return. And you can call Fidelity/Hartford/Etc. and they'll actually send an agent out to help you set these up. They're tax-deferred, and they can do a quick/easy 1035 Exchange to transfer the $ over usually. I'm glad I read this though, I'm going to check on Monday whether or not these can be used tax-free regarding tuition.
     

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