Comments on: Which of my Savings Bonds should I cash in?

by: Tom Adams

Tue, 27 Oct 2009 15:00:04 +0000

Sally - EE bonds earn interest for 30 years. So the maximum value of your bonds will be reached on their 30th anniversary.

However, if by "full amount" you mean face value, see this post on Savings Bond original maturity dates.

Tom Adams

by: sally

Mon, 26 Oct 2009 22:16:24 +0000

I have a bunch of series EE bonds that were issued in 1994 and some in 1997. I am wondering when to cash these bonds….when do they reach their full amount? I can't seem to find a straight answer. It has been 15 years on some of them and 12 years on the other. Please help.
Thank you.

by: Tom Adams

Tue, 08 Sep 2009 15:25:33 +0000

Susan - You save money for a rainy day and that's what the current economy has provided us.

Yes, it makes terrific sense for your kids to cash the bonds now, when they need the money and they have little other income.

Income tax rates are graduated. Everyone pays the same tax on their first dollar of income (which is nothing, by the way). Higher levels of income are taxed at higher rates.

Assuming you claim a child as a dependent on your tax return and the child has no other income, the child doesn't even need to file a tax return - much less pay tax - unless the Savings Bond interest is more than $900.

Here's more information on tax rates.

Tom Adams

by: Susan Lanni

Tue, 08 Sep 2009 15:12:46 +0000

My three children have E,EE bonds purchased by adults,in the children's name only. All of these kids could really use the money now for college expenses,as well as getting started after graduation. Since this is the lowest income level that they will probably ever have, would it make sense to cash them in now, rather than later, when their income is higher? Will they pay less taxes now, or is it the same no matter what their income is? If this unearned income is the only income they had this year, will they still have to pay taxes on it?

by: Tom Adams

Tue, 25 Aug 2009 16:10:55 +0000

JC - this is a complicated question. My book devotes a lot of detail to it. You have to consider interest rates, early redemption penalties, and when the bonds might reach face value. There's a table in my book that gives each issue a letter grade. You cash in the bonds with lower grades first.

Tom Adams

by: JC

Mon, 24 Aug 2009 17:05:27 +0000

We need to cash some Series EE bonds for my son's college expense. They are in his name and issued between 1990-1996. Many are worth more than denomination (ie: purchase price $50 -100.00 bond now worth $128). Many of these have higher interest rate than others that are not at denomination value yet. Should we cash in lower interest rate bonds even if they are not at denomination value yet or cash in the ones that have already accrued and have higher interest? We will wait until the next interest cycle to cash in any. Also, our son is 19 and has been working so he will file taxes. Thank you.