I recently got 4 of them as a gift, what do i do know or how long i keep it and why
2006-07-18 12:55:29 · 4 answers · asked by starM 1 in Business & Finance ➔ Investing
They are worth about half the face value. Go to any real bank and ask about it. I suggest that whom ever gave them to you was trying to instill a sense of savings to you. You should respect that! I believe they will reach face value in 7 years or so. The bank teller can help you.
2006-07-18 14:26:32 · answer #1 · answered by Capt 5 · 0⤊ 0⤋
EE bonds are above bank interest (some banks are better), but you actually lose worth on them after inflation and taxes. You could put them in a ROTH IRA so at least you wouldn't have to pay taxes on them. The people that try to sell EE bonds think the government isn't really interested in selling EE bonds because of the low low intrest the government is giving the EE bonds. I-bonds are better (giving almost twice the interest). EE bonds gain intrest for 30 years.
2006-07-18 23:46:02 · answer #2 · answered by gregory_dittman 7 · 0⤊ 0⤋
The essentials: if you redeem them between 5 and 30 years after purchase, you will get 3.7% annual interest compounded semi-annually; you can cash them in before 5 years, but you lose 3 months worth of interest if you do so, and you can't redeem them at all before 1 year has passed. After 30 years they cease to earn interest. Taxes are deferred until the year in which the bond is redeemed.
2006-07-18 17:14:06 · answer #3 · answered by dWj 1 · 0⤊ 0⤋
cash them out asap and put them the money in a ROTH ira.
you might try a Index fund..
2006-07-19 01:31:07 · answer #4 · answered by bob b 1 · 0⤊ 0⤋