The saving bond is being purchased for a child. If it matures in say, 7 years, do you just cash it in and buy another one or does it continue to accrue interest until she needs it for school?
2006-12-11 14:04:09 · 4 answers · asked by kathyw0728 2 in Business & Finance ➔ Personal Finance
I do not think it will accrue interest after the maturity date. I am sure there is a web site or 800 number for savings bonds. I would say when it matures you could cash it in or roll it into another bond.
2006-12-11 14:11:42 · answer #1 · answered by Gatsby216 7 · 0⤊ 0⤋
It still continues to accure interest up to 30 years after the month that it is bought. So if you buy a bond by the December 31, 2006, it will accure interest until December 2036.
Once it matures, it does not grow as fast. Also the saving bonds just keep up with general inflation and not with tution inflation.
2006-12-11 14:13:04 · answer #2 · answered by David W 3 · 0⤊ 0⤋
.1) What is original maturity? 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 DateOriginal Term 1/80 - 10/8011 years 11/80 - 4/819 years 5/81 - 10/828 years 11/82 - 10/8610 years 11/86 - 2/9312 years 3/93 - 4/9518 years 5/95 - present17 years 1.2) Does my bond stop earning interest at original maturity? No. After your bond reaches original maturity, it automatically enters one or more extension periods (usually ten years long). During extensions, bonds issued prior to May 1995 earn interest based on a guaranteed yield or a market-based yield. The applicable guaranteed yield is the one in effect at the time the bond enters the extension. Bonds issued after April 1995 have no guaranteed minimum yield. They will earn interest in accordance with the terms and conditions in effect at the time they enter the extension. 1.3) When does my bond stop earning interest? Bonds stop earning interest at final maturity. The following table shows final maturity periods for Savings Bonds and Savings Notes: SeriesIssue Date Final Maturity E5/41 to 11/6540 years E12/65 to 6/8030 years EEAll issues30 years H6/52 to 1/5729 years, 8 months H2/57 to 12/7930 years HHAll issues20 years Savings NotesAll issues30 years
2016-05-23 07:28:49 · answer #3 · answered by Kimberly 4 · 0⤊ 0⤋
Will usually keep acrueing interest until you cash it.
2006-12-11 14:06:31 · answer #4 · answered by trollwzrd 3 · 0⤊ 0⤋