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Savings Bond Question?
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Savings Bond Question?
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| 22/12 2013 19:11
You buy the US Savings Bonds at one half of the face value. In this case it was bought for $250. If you keep it for a long time, maybe 8-12 years it slowly gains interest and will eventually be worth $500. After only 4 years it isn't worth much more than probably $275 but I'm not sure. What ever the maturity period is, 8, 10 or 12 years (whatever) you can keep a Bond up to three times that long and will triple the value. But that takes forever.
| 22/12 2013 19:12
Series EE bonds are bought at 1/2 of face value. Only if you hold them to maturity (many years in the future) will they be worth face value. Sounds like you got caught by the rule that you must hold the bond 5 years before you can collect any interest it has earned. I wish the bank would have explained that first. In one more year, you would have gotten the interest earned in 5 years. (roughly $50 - a guess).
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