Question on Savings Bonds! PLEASE help!?

Question

i was wondering do you have to put the actual paper, that is the savings bonds in to a bank for it to add interest, or does it gain interest on its own? i'm new to this savings bonds thing.

if it does gain interest on its own, how much will i get if my savings bonds was issued MAY 2001, and the amount is 2,000 dollars?

thank you!!!

and its currently December 2007 (obviously)

Answer 1

savings bonds automatically accrue interest at their issuance (once you bought it) beware though depending on the type of bond you may have a penalty on it. As far as what you'll get for it depends on the type of bond I bonds are bought at face value so they accrue interest at your 2000 plus interest, ee bonds accrue interest at 2000 but are bought at 1000, so you will have 1000 plus interest, the rates vary you for your year it would be 90% of the 5 yr avg treasury rate. Try to hold on to it unless you really need it which you will have to go to the bank to cash it in. -danny the banker

Answer 2

Somewhere on line you can go and check on how much a bond is worth or you can call a bank/ You just need to know the year it was issued. The interest is added onto the bond when you cash it and then you get to pay taxes on it too. It takes about 20 years to get the full value of a bond plus interest. A $500 bond, only costs half that. If you cash it early, you only get half. Just hold onto your bonds and try to forget about them for the next 20 years or so and then look into cashing them.

Answer 3

Although the rates change slightly depending on when they are purchased, you get about 7-8% interest per year. You used to get the actual bond. I don't think it's mandatory anymore figure in 6 1/2 years, that would be 2,000 x .07 = $140 = $2,140 value in 5/02, then do the math for the next 5 1/2 years (that's compounded yearly--easy to check out on the web).

Answer 4

It's a Treasury security. Treasury bonds (T-Bonds, or the long bond) have the longest maturity, from twenty years to thirty years. They have a coupon payment every six months like T-Notes, and are commonly issued with maturity of thirty years. The secondary market is highly liquid, so the yield on the most recent T-Bond offering was commonly used as a proxy for long-term interest rates in general.[citation needed] This role has largely been taken over by the 10-year note, as the size and frequency of long-term bond issues declined significantly in the 1990s and early 2000s. The U.S. Federal government stopped issuing the well-known 30-year Treasury bonds (often called long-bonds) for a four and a half year period starting October 31, 2001 and concluding February 2006. As the U.S. government used its budget surpluses to pay down the Federal debt in the late 1990s, the 10-year Treasury note began to replace the 30-year Treasury bond as the general, most-followed metric of the U.S. bond market. However, due to demand from pension funds and large, long-term institutional investors, along with a need to diversify the Treasury's liabilities - and also because the flatter yield curve meant that the opportunity cost of selling long-dated debt had dropped - the 30-year Treasury bond was re-introduced in February 2006 and is now issued quarterly. This brought the U.S. in line with Japan and European governments issuing longer-dated maturities amid growing global demand from pension funds.

Answer 5

No, you don't have to physically put the paper bonds in the bank...

And a good website to visit is savingsbonds.gov
They have links to all kinds of info and also has a calculator so you can plug in the info on your bonds to get the current amount of the bonds...

Answer 6

No, you do not have to take the savings bond to the bank until you are ready to cash it in. There is a government web site where you can determine what your bond is worth. Here is the link. You down load the calculater at this link to your PC.

http://www.treasurydirect.gov/indiv/tools/tools_savingsbondwizard.htm

Answer 7

it gains interest on its own. you can throw them in the kitchen junk drawer and forget about them, and they will continue to draw interest. not sure what the rates are, haven't had one for quite a while. any bank would be able to tell you. or if you google savings bonds, there should be lots of govt. sites that will tell you.

Answer 8

Not enough info. 2,000$ though is probably the amount you are to be paid at whatever date it says on the bond. If you cash it in early, you get less.

Answer 9

Kay.
You pay a certain amount for the saving bond.
It collects interest on it's own.
I have two of them and I keep them in the freezer, because if there's a fire, the freezer is supposed to be fire resistant.
Then, you wait til it matures (usually eight or nine years).
Then it's worth 2000 dollars (in your case)

Answer 10

use the below website to find out how much it will be worth...i do know for sure, it is hardly close to being fully matured yet...

you will need certain information that you will find on the bond itself and then you can enter that info into the special calculator to let you know how much you will get.