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Advice on Saving Bonds

August 16th, 2012 at 04:22 pm

My grandmother, who recently passed, gave each great-grandchild a $500 savings bond. I am wondering if I should just leave it as is or would there be a better place to put that money for the kids?

I also received a check last week from my grandpa for $1k as a last gift from grandma. After thinking it over I am putting that into our ROTH IRAs. That is the best place for it to grow.
But between you and me, I was seriously tempted to go to Disneyland with it! Big Grin

3 Responses to “Advice on Saving Bonds”

  1. baselle Says:

    I think what to do with savings bonds will depend on what kind of bond they are (EE or I?), and when she gave them to your children. They earn money and mature for 30 years; you have to hold them for at least 1.

    There is a savings bond
    Text is wizard and Link is http://www.treasurydirect.gov/indiv/tools/tools_savingsbondwizard.htm
    wizard from the US Treasury, so you can monitor how much they are worth, etc.

    If I recall, I bonds are earning 3%, not many places that have better interest rates. And they are tax deferred, you would only pay federal taxes on them and if used for books and tuition, no taxes.

  2. monkeymama Says:

    I'd probably keep the bonds because that was her intent (excepting add it to other money already invested for the kids - sometimes givers mean well but are clueless about better investments).

    Agreed with Baselle - depends on the type of bond, too. I'd be curious about the interest rate, at the least. Tax ramifications should also be considered, though probably not of high concern in this example.

    HA - about going to Disney. Big Grin

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