2007-07-12 09:47:47 · 5 answers · asked by concern 2 in Business & Finance ➔ Personal Finance
There is no good time to invest in US savings bonds. You can expect a better return an a money market account with next to zero risk.
The current rate on series EE US savings bonds is 3.4%.
2007-07-12 12:32:50 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Savings Bonds are a TERRIBLE investment...they are paying 3.40% but that is at a fixed maturity of 20 years...they can earn interest up to 30 years. But if you buy a $50 bond (meaning you pay $25 for it) it will not be worth $50 until 20 years from the date of purchase.
2007-07-12 17:24:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Considering the interest rates will grow a lot the next year (it's started), I put my money in a high interest bank account (ING, but could be HSBC or others. I get 5%). I'll buy bonds later if they can give a good rate. If you buy bonds now, make sure they are not closed for more than 2 years.
2007-07-12 17:04:38 · answer #3 · answered by Jimmy John 3 · 0⤊ 0⤋
saving bonds are a very good investment for anyone who has just a few dollars (as little as $25.) to invert at one time -- remember that you have to kEEOp a saving bond for a minimum of 6 months (ee) and 12 months (I) before you can cash them. e bonds are paying about 4.25 and I bonds about 4.75 on to days market. one advantage about bonds a lot of folks do not think about say you are taking a trip and have just the amount of cash required but would like to have some extra cash just in case something really bad happens -- you can put a few of your savings bonds in your suitcase and you can always cash them in at and federal and /or state bank with a simple id.
if you have kids you can buy the bonds in their name and say you buy one 25 dollar bond a month and they do not need the bond for 14 years (bonds keep drawing interest for 30 years) the bond is in their name and say they are in college a 75 gift (tax free) could come in handy monthly.
i came back on to say that the other answers are correct but i was giving you the pros if you only have a very little bit of money to put in saving each month. savings bonds do not draw the best of interest but it is better that a piggy back and most folks when they start out do not have the necessary amounts to obtain high interest rates such as Cd's and most money market accounts --
2007-07-12 17:12:08 · answer #4 · answered by mister ed 7 · 0⤊ 1⤋
Bonds are safe, but not lucrative. the return depends on the bond you buy.
2007-07-12 16:53:48 · answer #5 · answered by cashmaker81 6 · 0⤊ 0⤋