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Interest on Savings Bonds and Interest on Savings Accts.?
Interest on Savings Bonds and Interest on Savings Accts.?
I have a few u.s. savings bonds with an interest rate of like 3.9& and some with 4%. I also have a regular savings account that gives me 4.65% apy.
Is the interest on savings bonds the same as interest on savings accounts? I mean, its gonna take until like 2025 for one of my savings bonds to mature fully to the amount of 200 dollars. Would I be better to just take all of my bonds out now even though they are not matured and put them in savings? Would I get more money that way? I bought the bonds have half their printed value, as in my aunt paid $100 for a bond that has 200 face value on it (which it should year full maturity in 30 yrs)
Answers:
Matt K: yes - us bonds suck....unless interest rates drop below that rate. When that happens, bond yields rise, so then you can buy back into bonds.
However, us bonds pretty always take forever to see an actual gain. You should open a online brokerage account (w/ Scottrade for instance) and buy other companies' bonds. They're less secure, but offer the chance of higher returns.
2007-12-21 11:58:27
However, us bonds pretty always take forever to see an actual gain. You should open a online brokerage account (w/ Scottrade for instance) and buy other companies' bonds. They're less secure, but offer the chance of higher returns.
2007-12-21 11:58:27
ADK: Well, the general rule is that you want to go with whatever can you get the highest net return (after expenses and after taxes) while taking the least amount of risk.
Since both the US savings bonds and the savings account are secured, you're probably better off putting the money into the savings account, since that gets you better interest rates.
But more than anything, you might benefit by checking out http://www.plannerconnect.com/investment-planning-investment-basics.html, which has some good information on getting into investing.
2007-12-21 14:44:32
Since both the US savings bonds and the savings account are secured, you're probably better off putting the money into the savings account, since that gets you better interest rates.
But more than anything, you might benefit by checking out http://www.plannerconnect.com/investment-planning-investment-basics.html, which has some good information on getting into investing.
2007-12-21 14:44:32