What is the best way to invest savings bonds?

September 4th, 2008 | by bonds |
nogmamm asked:


My kids have well meaning grandparents who send savings bonds for birthdays and holidays and I have no idea what to do with them. I have thought about putting them in a mutual fund at some point. Does anyone know what amount of money you have to have to start one up?

MALCOM
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  1. 6 Responses to “What is the best way to invest savings bonds?”

  2. By Marcus S on Sep 7, 2008 | Reply

    WAYLON

    Stop tripping and go to

  3. By foreclosures101 on Sep 11, 2008 | Reply

    ROY

    savings bonds are so 80’s ..buy tax lien better rate of return and you know county, cities always get paid the property taxes even if owners go thru foreclosures..so its a win win for you

    more info

  4. By jeff410 on Sep 13, 2008 | Reply

    RONALD

    They may be able to be used for the childrens, and the interest would be tax free.

  5. By shebao z on Sep 13, 2008 | Reply

    MIKE

    Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.

    wish it will help you.

    Good Luck , Best Wishes!

  6. By towanda on Sep 14, 2008 | Reply

    WALDO

    Savings bonds are always interesting because they don’t show up until you declare the interest.

  7. By Uncle Leo on Sep 15, 2008 | Reply

    JULES

    Most mutual funds require minimum amounts of around $2,000 to $3,000 to open an account. If you’re thinking of redeeming the savings bonds and using the money to open a mutual fund account, beware of the early redemption penalty on the bonds (3 months interest). And they cannot be redeemed until they are at least 12 months old. If your kids are under 18, the mutual fund company will want you or another parent to sign the account papers, since the kids won’t be old enough to enter into legal contracts themselves.

    If the savings bonds are small amounts (like $25 or $50), and the total is nowhere near $2,000 or $3,000, there’s nothing wrong with just letting the savings bonds accrue interest. While the interest rates aren’t high, they are reliable (because the U.S. government stands behind the bonds). In 15 years time, they’ll probably compound into a nontrivial value. Remember the power of compounding (see the webpage listed below). Maybe the bonds can help the kids cover their college expenses.

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