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What are savings bonds and how do they work?

March 7, 2009 by How Savings Bonds Work  
Filed under More Bonds Answers

Can you answer livelaughlove`<3's question about Bonds?:

I recently received a $25.00 savings bond. I’ve never had one given to me before, so I’m not sure what it is. How does it work? Do I just keep the bond until I’m ready to use it for something such as college? Do I have to pay any money for it? I’m very confused…if someone could help me, that’d be great. Thanks!
I think the U.S. savings bond is worth $50.

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Comments

4 Responses to “What are savings bonds and how do they work?”

  1. novombrogudobadosoftogusso on March 8th, 2009 7:40 pm

    Bonds Feedback: these are the bonds in which there is assured return although at loww rates.but it is the safe investment.

  2. Rusty Nails on March 11th, 2009 3:37 pm

    Bonds Feedback: It’ll be worth 25 dollars in the future you won’t have to pay any more for it..

    more profit is available in a credit union checking account..

  3. will c on March 11th, 2009 5:04 pm

    Bonds Feedback: a bond is like a savings account but with no monthly statement. each month the bond increases in value from interest that accrues/builds. the bond matures in 30 years from the date of the bond which means that after that time the bond does not grow in value anymore. you can cash it at any bank and get the money, preferably the bank you conduct business with. if you cash it within the first 5 years you pay a penalty. the penalty is that the last three months of interest that accrued will be taken away before youre given the cash.

    i assume it is a us savings bond.

  4. Resume Guru on March 12th, 2009 5:49 pm

    Bonds Feedback: A savings bond is only worth the amount on the front. While credit union accounts offer interest on your money, ING and E*Trade are now offer 4.0% or more interest on checking and savings accounts compared to the usual 1.25% that most other institutions offer.

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