The boys' grandpa purchased several EE savings bonds for them from about 10 years ago to about 2 years ago. Then he started buying them I Bonds for birthdays, Christmas etc. Would we be better off leaving the EE bonds along or converting them to I Bonds? Or better to just cash them in and put them in a CD? Thanks.
2007-01-13 16:09:18 · 6 answers · asked by HomeSweetSiliconValley 4 in Business & Finance ➔ Personal Finance
The interest rate on the EE bonds is fixed, but the rates vary depending on when they were issued. The ones issued 10 years ago are probably earning higher interest that the ones issued two years ago.
There is no direct conversion from EE bonds to I bonds. Series EE bonds used to be convertible to H/HH, but EE bonds are no longer convertible.
The EE bonds would have to be cashed in before purchasing the I bonds. Bonds redeemed without being owned at least 5 years will forfeit 3 months worth of interest.
When cashing these in, whether exchanging them for I bonds or to buy CDs, interest income would also have to be reported when filing income taxes.
The US Treasury has a website where you can learn what each bond is worth, and how much interest each one is earning.
2007-01-13 18:16:58 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Actually, last I checked "I" bonds were supposed to be earning interest equivalent with the rate of inflation, which is a HUGE difference between the old standard serries EE.
I would go for the I bonds, but don't expect your EE bonds to have fully matured. Their purchase price was half the face value anyway. They take forever to mature.
2007-01-13 16:13:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
nicely both bonds are going to slowly benefit pastime. The I bond contained ultimately will be nicely worth better. that's offered for face cost and starts gaining pastime from that volume. The EE bond is offered for 1/2 the face cost and would not benefit the total face cost for 15 years. There aren't any hazards linked with those bonds however the pastime received back is amazingly low and very sluggish.
2016-12-02 05:59:31 · answer #3 · answered by jaffar 4 · 0⤊ 0⤋
It depends on the rate of interest. Plain and simple, take the interest rate and see if the newer CD's/bonds are better or not and then make decision.
2007-01-13 16:13:23 · answer #4 · answered by fade_this_rally 7 · 0⤊ 0⤋
Afetr they mature trde the bonds int a C D
2007-01-13 16:12:03 · answer #5 · answered by Anonymous · 0⤊ 0⤋
right now EE has higher interest then I so just keep them as they are.
2007-01-13 16:11:54 · answer #6 · answered by silentjealousy77 4 · 0⤊ 0⤋