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s/o U.S. Savings Bonds


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My MIL paid $37.50 for a $75 bond, series EE, for each of my children. I just checked the current value and one is $59 (have had it 14 yrs.) and one is $64 (have had it 16 years). How long does it take to fully mature to $75? It seems like it's going to take 20 years. That seems like a lot. Does it continue accruing interest if it's not cashed, so that it will be worth more if they wait more years to cash it? I tried finding out on the Treasury's website but I must not be looking correctly. They just talk about a 5-yr rate or something. I was wondering if these bonds only go to face value and nothing more.

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Bond rates vary depending on the year of purchase. Formerly they realized the face value in about a decade but, as I am sure you are aware, interest rates are practically nil. Hence those bonds are inching to face value.

 

I suspect that you utilized the savings bond calculator to determine present value. The calculator will also give a maturity date (for EE bonds it's 30 years--I think). At that point the bonds will no longer earn interest.

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I suspect that you utilized the savings bond calculator to determine present value. The calculator will also give a maturity date (for EE bonds it's 30 years--I think). At that point the bonds will no longer earn interest.

 

Oh I didn't see that. I'll have to put them in again and see if it's listed.

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They do take 17-20 years or so to mature. It seems like a long long time! But thats the point.

This chart shows the maturity time, depending on when the bond was bought:

http://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds_eeratesandterms.htm

 

And yes, they continue to gain interest up to 30 years after they were issued.

 

Awesome, I read that page but glossed right over that information. Thanks!

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my grandmother was fond of savings bonds and had purchased several for me. when I got married, dh promptly cashed them in and invested them in something that gave a higher yield. (iow: it's the interest rate that matters)

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