US Government Saving Bonds - EE Series

Angio333 · #1 (**permalink**) 07-23-2008, 07:45 PM

Does anyone invest a little in US Government Saving Bonds - EE Series? I have a $50 and a $100 bond from when I graduated High school in 1996 that are not even close to reaching face value yet.

What is the interest rate for newly purchased US Government Saving Bonds - EE Series?

cooliemae · #2 (**permalink**) 07-23-2008, 10:53 PM

Great place to go for info is TreasuryDirect

A EE series bond purchased today would get a wopping 1.4% interest rate.

jIM_Ohio · #3 (**permalink**) 07-24-2008, 12:08 PM

I would do this if I was close to retirement and needed a place to put cash for 5-10 years.

I am 18-28 years away, so my investments go to more growth oriented offerings.

stressedmama · #4 (**permalink**) 07-25-2008, 08:58 AM

Yes, I have about $1000 in EE bonds right now. I put about $10 a month towards them a month (automatic deduction through work). I plan to use them towards kids college books. If you use the bonds to pay for college costs, you are not taxed on the interest earned (so long as you make under a certain amount).

cooliemae · #5 (**permalink**) 07-25-2008, 09:11 AM

Quote:

Originally Posted by stressedmama

Yes, I have about $1000 in EE bonds right now. I put about $10 a month towards them a month (automatic deduction through work). I plan to use them towards kids college books. If you use the bonds to pay for college costs, you are not taxed on the interest earned (so long as you make under a certain amount).

You could get twice the interest rate by opening up a high interest saving account. ING offers 3% compared to the 1.4% your getting now! Sure, you have to pay taxes, but with such a small amount the taxes paid wouldn't be more than the interest gained.

stressedmama · #6 (**permalink**) 07-25-2008, 09:26 AM

Good point. I already have an ING account set up too. I've just been on autopilot with the automatic deduction for the bonds (since it is so small of a deduction I haven't really worried about it). I will look some alternatives and at switching it. Thanks.

jc3900 · #7 (**permalink**) 07-25-2008, 11:03 AM

I personally don't think that anyone should take out a government bonds as our current national debt is at 9.5 trillion(and thats not taking into account the socialist 300 billion dollar housing bailout about to occur)