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Old 09-15-2006, 02:04 PM
sweeps sweeps is offline
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Default Re: US Savings Bonds EE

Savings bonds aren't a bad investment, but honestly they're not great either. Although they're ultra-safe, you're probably not getting as good of a return as you should be getting. Especially with your child so young.

Also keep in mind that the EE bonds can only be used for tuition and fees. So things like room & board and other college necessities would not be covered.

My recommendation would be to leave what you have in the EE bonds, and going forward contribute to a 529 plan. You should be able to get much better returns from the 529 investment, and the proceeds can be used for things like room & board. Many states offer a tax deduction when you contribute as well (in addition to the money growing tax-free).
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