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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Savings bond question
I have about 1,000 in savings bonds from when DD was born. I was wondering does it make more sense to let these mature and then put them into my DD's 529 plan (what does it take, 7 years to mature?) or cash them in now and take the money (around $500) and put it into the 529 plan. Any suggestions? TIA
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Posted 12/3/07 1:12 PM  |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Savings bond question
If you cash them in before maturity you will get 50% of face value.
Savings bonds issued after 5/95 mature in 17 years.
Message edited 12/3/2007 1:15:56 PM.
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| Posted 12/3/07 1:14 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: Savings bond question
Posted by Lisa
If you cash them in before maturity you will get 50% of face value.
Savings bonds issued after 5/95 mature in 17 years.
But don't they only reach full maturity at 30 years?
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| Posted 12/3/07 1:29 PM |
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Lisa
I'm a PANK!!!
Member since 5/05 22334 total posts
Name:
Professional Aunts No Kids
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Re: Savings bond question
Posted by Goobster
Posted by Lisa
If you cash them in before maturity you will get 50% of face value.
Savings bonds issued after 5/95 mature in 17 years.
But don't they only reach full maturity at 30 years?
No...
Original maturity is the MAXIMUM amount of time it takes for a Series E/EE bond or Savings Note to reach face value. The following chart shows the original term for Series EE bonds:
Issue Date Original Term
1/80 - 10/80 11 years
11/80 - 4/81 9 years
5/81 - 10/82 8 years
11/82 - 10/86 10 years
11/86 - 2/93 12 years
3/93 - 4/95 18 years
5/95 - present 17 years
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| Posted 12/3/07 1:35 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Savings bond question
Posted by stephanief
I have about 1,000 in savings bonds from when DD was born. I was wondering does it make more sense to let these mature and then put them into my DD's 529 plan (what does it take, 7 years to mature?) or cash them in now and take the money (around $500) and put it into the 529 plan. Any suggestions? TIA
You are better off cashing them in and putting them into something more growth oriented if you want to use the $$ towards college.
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| Posted 12/3/07 1:38 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Savings bond question
Posted by shamrock124
Posted by stephanief
I have about 1,000 in savings bonds from when DD was born. I was wondering does it make more sense to let these mature and then put them into my DD's 529 plan (what does it take, 7 years to mature?) or cash them in now and take the money (around $500) and put it into the 529 plan. Any suggestions? TIA
You are better off cashing them in and putting them into something more growth oriented if you want to use the $$ towards college.
That is what I was thinking. I think I am gonna cash them in, take the $500 (or whatever they are worth now) and put that money into the 529 plan. Thanks
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| Posted 12/3/07 1:42 PM |
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pinkandblue
Our family is complete, maybe
Member since 9/05 32436 total posts
Name:
Stephanie
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Re: Savings bond question
Posted by Lisa
If you cash them in before maturity you will get 50% of face value.
Savings bonds issued after 5/95 mature in 17 years.
Yeah, that does not make sense to wait until they mature....dd will be ready for college then 
I am gonna cash them in now and put the $$ into her 529 plan. Thanks ladies 
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| Posted 12/3/07 1:44 PM |
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Sassyz75
Turning a new page
Member since 5/05 9731 total posts
Name:
Dina
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Re: Savings bond question
I am keeping them as savings bonds b/c I figure it's like having a diverse portfolio- I don't know if it's ever a good idea to have all the $ in one "basket"- so we have interest bearing as well as the bonds.
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| Posted 12/3/07 1:50 PM |
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CookiePuss
Cake from Outer Space!
Member since 5/05 14021 total posts
Name:
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Re: Savings bond question
Posted by Sassyz75
I am keeping them as savings bonds b/c I figure it's like having a diverse portfolio- I don't know if it's ever a good idea to have all the $ in one "basket"- so we have interest bearing as well as the bonds.
While I agree with a diversified portfolio, savings bonds recently issued have a fixed interest rate lower then that of money markets or CDs.
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| Posted 12/3/07 2:30 PM |
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Goobster
:)
Member since 5/07 27557 total posts
Name:
:)
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Re: Savings bond question
Posted by shamrock124
Posted by Sassyz75
I am keeping them as savings bonds b/c I figure it's like having a diverse portfolio- I don't know if it's ever a good idea to have all the $ in one "basket"- so we have interest bearing as well as the bonds.
While I agree with a diversified portfolio, savings bonds recently issued have a fixed interest rate lower then that of money markets or CDs.
I agree. I like to keep some bonds also for this above reason.
Even though CDs have a higher interest rate, they will fluctuate more wildly over the next 20 years than a bond will. So that is my reasoning. I don't know if it is a good one, but that is why I do not cash in some bonds we purchased in more recent years.
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| Posted 12/3/07 11:15 PM |
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