I want to get 'em for my kid as a means to save for his education(he's 4 months old), but the way things are today, will Uncle Sam even be able to give me my money when the time comes?
2007-03-03 23:24:55 · 7 answers · asked by Pontius 3 in Business & Finance ➔ Investing
Savings bonds are safe. They just have a low interest rate.
Set up an account under the Uniform Gifts to Minors act and invest in a good mutual fund.
Or check your states 529 plan to save for college. Make sure you understand what you can and cannot do with the money under the 529 plan though. If your child doesn't go to a state university, there won't be as much money there to use at Harvard or Stanford if he chooses to go there. Or what if he doesn't want to go to college at all? However, there are usually some state tax benefits to a 529.
2007-03-03 23:37:00 · answer #1 · answered by Faye H 6 · 1⤊ 0⤋
US Savings bonds are the safest investment you can make. There is so much wealth in the US that it cannot adequately be measured. The US will not go out of business.
The interest rates are not that great. There are several good investment plans, such as the 529 plan, where you can invest for your child's education and earn a better rate of return.
2007-03-04 07:30:44 · answer #2 · answered by regerugged 7 · 1⤊ 0⤋
Interest rates are high right now because the Feds are fearing of a recession so bonds are giving low rates of return. Certificate of Deposits and high yield savings accounts are currently equivalent to high yield bonds.
You can just stick it in a CD and have it grow 5-6% and usually have shorter terms. (1 month - 5 years)
Online savings accounts offer 5-6% also. They're FDIC insured and the money remains in a liquid account. You can take it out anytime you want to.
It's like a seesaw.. when interest rates go up then bonds go down. When bonds go up then interest goes down.
2007-03-04 07:38:24 · answer #3 · answered by Geeeyaaa 4 · 1⤊ 0⤋
Investigate a 529 plan instead. Much better option. 529 plans are tax free. You can acquire one through a mutual fund company such as American funds if you wish only to invest a small amount at a time. They have some really good funds. We talking 10% annual return vs about 3.5% with savings bonds.
2007-03-04 07:36:58 · answer #4 · answered by Italian girl 4 · 1⤊ 0⤋
yes you'll get the money, however, it is a poor investment choice. you will probably do better with a diversified stock plan or using your state's tax-free college savings account (some even allow you to use those savings for private school prior to college).
2007-03-04 07:34:47 · answer #5 · answered by contemplating 5 · 1⤊ 0⤋
the interest rate on them is good...they are guaranteed fixed interest rate...i have bought them for my self through my 21 year career in the army...'75-'96. I buy them for my grandkids now...it's a sound investment
2007-03-04 07:35:06 · answer #6 · answered by Michael K 5 · 1⤊ 0⤋
Yes they are
2007-03-04 07:49:43 · answer #7 · answered by ? 6 · 0⤊ 0⤋