Savings Bonds

[bokelley]

Okay, so we are trying to setup savings bonds for my niece and nephew. It is so confusing.

Ryan thought we could give them 25 for each holiday, and then in 10 years it doubles? I can't seem to figure it out, and there are so many choices.

Please help

[HouseofWool]

Don't bother with series E savings bonds, they now take 20+ years to double

[HouseofWool]

Check to see where they bank and see about opening a CD for them. Where we bank, they have a kids CD where we can add money at any time, not just at maturity and it earns a higher rate.

[diggitydot]

Don't bother with series E savings bonds, they now take 20+ years to double

All sorts of this. My grandpa very generously bought $100 EE bonds for each great-grand kid for each birthday and Christmas for their entire lives. Our oldest will be well into her 20s when they all finally mature. He got smart and bought the rest of the kids ahead so they'll mature by the time they need the dough for college.

[HouseofWool]

DD, I cashed all of them in and stuck the money into CD's for the kids. A way better option.

[spotty_dog]

I don't think Series EE ever had a 10-year maturity. DH paid off his med school loans with Series EE bonds from his grandfather that reached their 18-year maturity when he was in his late 20s. Series E haven't been sold since 1980.

The new Series EE earn a fixed interest rate that changes every 6 months and you can cash them in at (almost) any time to claim that interest, OR you can hold them to their 20-year maturity and earn an effective rate greater than 3%, risk-free. That is a pretty sweet deal in today's market. The biggest downside is that since they're electronic-only you need the kids to have their own TreasuryDirect accounts set up with their SSN. But then, you'd need accounts and SSN at a bank to set up CDs as well.