Is it just like the 401k plan. Or Wnat? How do i know how much money the bond has earn? Where can i go if i want to find out how much it has earn?
2007-03-11 01:49:47 · 5 answers · asked by SKILLS 2 1 in Business & Finance ➔ Personal Finance
Go to the US.gov and click on savings bonds. If you have the number of the bond you can check the maturity level...I have been purchasing us bond for about 10 years.. my daughter can use them when she is ready to go to college or pass them on to her children...
-- Carye
http://www.IBOPlus.com/40485726
http://www.EveryoneBenefits.com/40485726
2007-03-11 01:55:01 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The bond is guaranteed by the Federal government. It earns stated interest and matures at stated time period. i.e. 5 years, 10 years. The usual manner it is purchased is to pay half of face value. So for your $100 face value you paid only $50. If you sell prior to maturity, the bank then recalculate how much you earned. You can do the same simply by prorating the $50 for the time you held the bond. i.e. if you want to sell after holding it for 13 months then use the ratio 13/120 if its a 10 year bond.
2007-03-11 03:09:46 · answer #2 · answered by McDreamy 4 · 0⤊ 0⤋
As I can remember you can take it to your bank and they will be able to tell you the face value. Some are interest free depending on what type Series it is and yes they would be like a 401k. Longer you hold it naturally the more it is worth past the face value - for some reason 7 years seems like when they reach face value so if you have held it less than that then it will be between the $50 purchase price and the $100 face value. It does stop earning interest after a number of years.
2007-03-11 01:58:54 · answer #3 · answered by William F 1 · 0⤊ 0⤋
Hi,
Bonds are a loan that you give top the government, or any other agency that issues them. It works on the basis that you recieve a fixed payment, in the form of interest, as specified in the terms of the bond. At the maturity date, you get the principal amount.
Usually, (I am not in the US) a bond pay the going annual (called a yield) interest rate (federal interest rate), however some bonds have fixed yields, and some have floating yields.
The advantages of bonds is that the are virutally risk free, meaning that you will not loose your money, however, due to their low risk, they also offer very low returns. If you want greater returns, invest in stocks. As for info on your bond, you should contact the issuer of this bond.
2007-03-11 01:57:34 · answer #4 · answered by K S 1 · 0⤊ 0⤋
A series EE U. S. savings bond costs about $18.00 to purchase, and they mature in twenty years. They are not like a 401(K) - they are completely different ways of saving.
Check out this web site.
http://www.treasurydirect.gov/indiv/tools/tools_savingsbondcalc.htm
2007-03-11 03:03:54 · answer #5 · answered by jim_elkins 5 · 0⤊ 0⤋