# Savings Bonds



## debodun (Sep 23, 2017)

I had occasion to visit my bank safe box and found 5 Savings Bonds I had almost forgotten I had. One has reached it's maturity, so I can redeem it at any time now as it will not accrue any further interest (if I understand bonds correctly). Two others will not reach maturity until the autumn of 2019 and the other two I have to wait 10 more years for them to mature. 

I used Treasury Direct to check on the value and was appalled to see the two maturing in 2027 have so little interest accrued in the 20 years since purchase - $2 on the $50 and $8 on the $200 one. I think for a senior, bonds are not that great an investment, unless you're buying for a grandchild or such. They take 30 years to reach maturity and at age 65 (and many here are probably a bit older than that), the buyer would be 95 then.

BTW- the U.S. has discontinued issuing paper bonds and have switched to all electronic transactions.


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## jujube (Sep 23, 2017)

About twenty-five years ago, I was rummaging through an old trunk of my grandmother's, filled with junk, and found a savings bond she had taken out for my father in 1942, the first year he was in the Navy.  I was very excited to find it and took it to the bank to get info on it.  They said it was still good, but had stopped accruing interest many years ago.

I told my father that I had a gift for him from his mother and gave him the bond.  He was gobsmacked to see it.  We made a good copy of it and he took the bond to the bank to cash.  

I also found a savings account book she had taken out for me when I was five days old.  It had $8.75 on it.  That I saved as a memory piece.


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## Don M. (Sep 23, 2017)

Savings Bonds and US Treasury Notes can be used as a small part of an investment strategy...they earn little in the way of interest, but can be a "cushion" when the stock market takes a nosedive.  So long as the Fed holds the prime rate this ridiculously low, money in bonds, or the bank, will grow very little....this all Thanks to our governments huge National Debt.  When I was working, the company had a plan for buying Savings Bonds at a reduced rate, so I signed up decades ago, and have a small stack of these bonds...most of which have matured.  Once in awhile, if I decide to buy something, I cash one or two in, and use the money to make the purchase.


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## terry123 (Sep 23, 2017)

Stopped buying them years ago.


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## Myquest55 (Sep 23, 2017)

_" I think for a senior, bonds are not that great an investment, "_

US Government savings bonds are not the best things for senior investments but are wonderful gifts for newborns and children.  HOWEVER, do not confuse these with municipal bonds, corporate bonds and other bond investments.  THOSE are better for senior investments since they often off-set stock market volatility and many are tax-free.  We have a mix of stocks, bonds and mutual funds so if the DOW drops, my total, sometimes, goes up because the bonds are holding steady.  A good financial advisor can help you diversify.


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## debodun (Sep 24, 2017)

When I was cleaning out my uncle's apartment after he passed, I found 3 U.S. Savings Bonds with my uncle as the beneficiary and my grandparents as secondary. In order to redeem hem I'd have to get copies of my grandparents death certificates. Seems like it would cost more and be more trouble than it would be worth to redeem them for their $200 total value.


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## mathjak107 (Sep 25, 2017)

debodun said:


> They take 30 years to reach maturity and at age 65 (and many here are probably a bit older than that), the buyer would be 95 then.
> 
> BTW- the U.S. has discontinued issuing paper bonds and have switched to all electronic transactions.



no the bonds don't take 30 years to mature . the maturity date is dependent on the interest rate .  many mature in 17-20 years . they do however pay interest up to 30 years .

there is a difference between maturity vs how long they will pay interest .


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