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savings bonds

by Jan M.

EE US Savings Bonds

Store Important Financial Papers Safely

Wait don’t cash your Savings Bonds in early! Because they are a pain to store, consider joining Treasury Direct the new online service. After you have set up an online account you’ll eventually get an invitation to convert your paper based savings bonds to the electronic account. This system insures you won’t lose the bond and simplifies your recordkeeping.  The online service also enables you to easily convert the bond to cash and transfer the cash to your savings account when it is required. . .   

Put your paper US Savings Bonds in a fireproof box or your folk’s safety deposit box for safe keeping until your Treasury Direct service is set-up!  

These accounts are easy to set-up; it only takes about ten minutes to complete online.

Maximize Your Return by Checking for Key Dates

When you are ready to cash your bonds, small timing changes can help you maximize your investment’s interest. EE savings bonds earn interest monthly, but the interest is only added semi-annually.  Be sure to cash in your EE bonds after the interest is compounded, otherwise if you cash in the bond right before the semi-annual compounding you will forfeit approximately 6 months interest.   

For example: a bond with an issue date of March 1991 increases in value every September 1 and March 1. If you cash this bond in August, you'll receive the same amount as if you had cashed it the prior March; but if you wait and cash the bond on or after September 1, you'll receive another six months of interest.  (More information on saving bonds interest) 
 

Be sure to discuss your unique situation with your accountant or registered financial advisor before making this or any other investment. The purpose of this article is to provide information; you are responsible for your investment choices.

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