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Author: bundone Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308881  
Subject: savings bonds Date: 12/18/2000 11:13 AM
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My mother has bought my kids savings bonds over the years. They are sitting in a big pile. Some have matured but most haven't. I keep thinking it would be in my kids best interest if we cash them out for their face value and dump into a CD or something else. The kids are 14 and 16 and have ~$500-1000.
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Author: tsouth Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 51786 of 308881
Subject: Re: savings bonds Date: 12/18/2000 11:42 AM
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My mother has bought my kids savings bonds over the years. They are sitting in a big pile. Some have matured but most haven't. I keep thinking it would be in my kids best interest if we cash them out for their face value and dump into a CD or something else. The kids are 14 and 16 and have ~$500-1000.
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U.S. EE savings bonds continue to earn interest for 30 years (even after their maturity date), so unless your kids are over 30 the savings bonds are still earning money (the value of some may exceed their "face" value).

With only a few years left until college, it might be best just to leave the money in savings bonds until the kids go to college, move out on their own, or whatnot. They are likely to have a need for money then.

Here's a site that will tell you exact value and other savings bond info: http://www.ustreas.gov/opc/opc0035.html

Best of Luck,

Teresa

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Author: croesus17 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 51994 of 308881
Subject: Re: savings bonds Date: 12/20/2000 2:06 PM
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Are the bonds in you mother's name or the children's?
The interest earned from savings bonds can be tax free if used for educational expenses and certain conditions are met.
See

http://www.savingsbonds.gov/sav/sbedfaq2.htm#about

for details. If you can't get the tax exclusion, then you might consider hanging onto them anyway. With college expense only a few years away for the 16 year old, you might not want to lock up the money into a long term CD and if the bond is over 5 years old, then you're free to cash it in anytime without penalty. Also the bonds are free of local/state tax.

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