Series EE bonds... need financial guys help!

[Twistid 5,000+ posts]

I've recently caught the savings bug and have been purchasing savings bonds. I was thinking of dumping some more spare cash into bonds, but I had a question.

Series EE Bonds are Treasury securities that earn interest at market-based rates for up to 30 years. The purchase price of a bond is 50 percent of its face amount; for example, a one hundred dollar bond costs fifty dollars. Interest is added to the value each month and paid when the bond is redeemed. The interest you earn on your series EE bonds is exempt from state and local taxes. Federal Tax can be deferred until you redeem the bonds or until they stop earning interest after 30 years. Series EE Bonds are available through myPay in the following denominations: $100, $200, $500 and $1,000. Can be redeemed after 12 months.

Does this mean I can buy up a bunch of $1,000 bonds for $500, wait 12 months, then cash them in for full $1,000 value? So its essentially doubling your money once it reaches the 12 month mark?

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[RED3 10+ year member]

NO, you will only receive $500 + 12 months of interest that was earned.

 

[AudioFreak 10+ year member]

I just cashed one of mine in a couple months ago..right now is the best time to cash them in is what i heard. As for buying EE Bonds i dont think they sale them antmore and if you buy someone else is its worthless cause you wont be able to cash it.

 

[speedfreak28 10+ year member]

like RED3 said you will only get the interest that accrued over 12 months ( not very much) and you do have to pay federal tax on the interest when you cash them in

 

[AlterEgo99 5,000+ posts]

Savings bonds? Are you nutz bro? Buy some gold bro, based on the economy and where Barry and Congress are steering it, dem bonds are gonna be fuckin' worthless. //content.invisioncic.com/y282845/emoticons/fyi.gif.9f1f679348da7204ce960cfc74bca8e0.gif

 

[Ken448 10+ year member]

LULZ If they matured in 1 year, EVERYONE would be loaded! H3ll, Id never have to work again!