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savings bonds

Do you have to have a savings/checking or can you just keep them until they are old enough>> My girls are too young to have a bank account and we recieved saving bonds for them and I don't really know what to do..

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baby1love

Asked by baby1love at 10:42 PM on Dec. 27, 2010 in Money & Work

Level 15 (2,042 Credits)
Answers (4)
  • You do not want to deposit those now. You save them until they mature and are worth face value. And your kids are not too young for a checking/savings account, they could be opened at any age. They are opened with you on the account as well.
    Candi1024

    Answer by Candi1024 at 8:51 AM on Dec. 28, 2010

  • I agree with Candi, your kids are not too young for a savings account. I opened accounts for each of my kids while they were infants. We always receive money from the relatives for birthdays and Christmas and we deposit the money into their accounts so that they have a running start when they get older and start earning and saving their own money. Your name goes on the accounts until they are 18.
    As far as Savings Bonds go, keep them in a safe place, they don't mature for a loooong time. If you cashed them in now they would only be worth 1/2 their face value, they don't reach the entire face value for something like 7 years (could be more). I do know that they longer you keep them, they will earn additional interest on them up to 30 years.
    slw123

    Answer by slw123 at 10:21 AM on Dec. 28, 2010

  • I got one when I was born. It wasn't mature until I was 30 and I have yet to cash it in. You can cash them in sooner, but they are worth less.
    HotMama330

    Answer by HotMama330 at 11:20 AM on Dec. 28, 2010

  • You just keep them in an envelope or somewhere safe until they mature. Both of my girls have savings accounts and they are what you call custodial, which means you and or your spouse is ont he account with them

    The savings bond ARE NOT worthless..they mature a little each yr depending on the going rates from the Federal Reserves. So lets say they are 5 years old they may have been 100 dollar bonds (at maturation) (50.00 when purchased) and have gained like 20.00 in interest.
    You will pay a pre-penalty tax on them if cashed before maturation. They do Cap out as well, so eventually they will gain no more interest.
    Happymom2-2

    Answer by Happymom2-2 at 3:44 PM on Dec. 28, 2010

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