How To Calculate the Value of Savings Bonds

[linda]

Most of the savings bonds have been extended to a 30-year life--they continue to gather interest past their 5 year original value based on face value.

But, how do you know how much they are worth and when they will be mature and no longer gain interest? How do you know what interest a particular bond is paying?

Go here:

www.treasurydirect.gov/BC/SBCPrice

[KarenN]

Cool! My kids have tons of Treasury Bonds given to them every birthday/Christmas by their grandparents! Thanks.

[linda]

I found that we have two we might as well cash--one pays 2% and the other 4% (both well over their face value.) But, the third one pays almost 8%. That is a keeper in today's market.

Note that you need to pay income tax on the interest you make on savings bonds...... However, I know you can roll the money over into a traditional IRA. Perhaps you can find something where the kids can roll theirs over into an IRA for school that allows you tax-free interest when the money is used for education.