Yay or No? Are they a good investment to make and keep or a poor choice?

I have 13 US EE Series savings bonds the oldest being from 91
They are all still happily gaining interest at some where between 3.15% and 4.15%
There current value is around $1800 mostly they were b-day and christmas gifts I recieved as a teen. One of them is my Daughters so that one wouldn't be cashed

Does it make since to keep them. Weighing recieving 3-4% while paying 6% on a car loan or 6.75% on a morgage or 12% on a CC once the intro rate expires.

Yet at the same time its a good secondary emergency cusion we have only $1500 as an emergency fund and its gaining at a higher rate then our saving account. If we were to have a medical emergency where we had to pay our whole detuctable in a year the savings bonds would cover it. Without depleating what we have in our savings.

What do you all think?

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Kimberly Proud Mommy to Bethany Rose April 2006

I don't think they are so great. I get 5.25% in my money market account which is far more than I would get in my savings bonds. We have a LOT of savings bonds in my husband's and his grandmother's names from 1992. He won't cash them until she is gone out of respect. We could be earning a bit more interest if we were to cash them and put them in our money market account, but I have to respect him and his grandmother.

I think there are other, better ways to invest your money. Of course, this is an account we don't really touch EVER. If you think you would touch the money out of temptation, then I say leave them as bonds. JMO

My kids get them every year from well meaning relatives, however I cash them in right away and put them in the kid's investment accounts. Much better interest rates! (Don't tell my family!)

If yours could pay off your Credit Card, I would cash it out and pay off that card! But if you think you'd just charge it up again, or spend the money than it might help you to leave them as bonds.

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A woman is like a teabag. You never know how strong she is until she gets into hot water.-Eleanor Roosevelt

I love them. There aren't many investments out there where you can lock in a decent interest rate and only spend $25 to $50. We used to be in the Treasury bond investment program where they would automatically withdraw the money from your account once a month then send you the bond. Sadly, they stopped that program.

No, it isn't a high interest rate but it is pretty darn low risk and low pain-threshold when it comes to investments. They aren't the only investment we have, but they are one of the ways we save. Not everything can be in stocks.

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"I've been rich and I've been poor but independently wealthy is where it is at."

i personally would cash them in and open a cd if you don't intend to use the money now. if you want to use the money now cash them in and pay down the debt you would definately save more in the long run this way.

we stopped doing savings bonds and put all our kids into a cd on their accts now grandparents and relative just go to the bank and put money right on there cd's the kids cd's money can be added at anytime. so thats what we do now.

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'The will of God will never take you where the
Grace of God will not protect you.'

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