Does anyone else detest savings bonds?

[overcome]

I sound so ungrateful, but savings bond are a PITA. It is so much easier to just put $$ in a savings account. Am I being ridiculous?

Truthfully I am grateful that ppl care enough to think of dd, but nevertheless...I have to complain :)

[lilycat88]

I actually like them. But, I can see the other side as well. Probably the reason I like them is that I grew up getting them for every special occasion...Christmas, birthdays, etc. I cashed them all in when I was 28 and bought my first house. I had enough to put nearly $20,000 down on a house and avoid PMI. Some of them were from when I was born.

We have a few from different people for DD but we aren't counting on them as part of her college savings or anything like that. They are nice gifts from other people but not an investment choice of ours.

Jamelin
Mom to Susanna born 6/29/2004

[Moneypenny]

I like them as gifts from other people. As my mom, who buys most of DD's savings bonds, say, "I could spend the $100 now on a toy she'll play with for a year, or she can cash them in when she's older and actually get some use out of the money at twice the value."

But, I do agree that it is a pain to keep track of them and when they can be redeemed. DH actually created a spreadhsheet for us because we both also have several that were gifts to us when were kids.

Susan
mama to my cutie pie, Avery
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[amp]

We get them and I don't mind them, but honestly, I don't remember having them, so I don't really understand them or how much they'll be worth or whatever. I would almost prefer that they put the money into their 529 plans, but at least this way I have the envelope and the date it was given, so that is kind of like a record for the kids someday. Something concrete I mean. I would rather have that than clothes I wouldn't pick or toys I refuse to buy cluttering up our house!

[carryingandstrollingabout]

Since I'm anonymous...

How do they work? I got a big one years ago, but don't know how to cash it, where to cash it, and how to know when it has matured. Embarrassed to ask giver how to cash it.

Anyone know?

Thanks!

[elliput]

Just take it to your bank. They will be able to tell you the current value and cash it if mature.

[overcome]

There is a very cool (IMHO) little free program that you can download that will keep track of your bonds. Let's see if I can find it.
http://www.treasurydirect.gov/indiv/tools/tools_savingsbondwizard.htm

I guess I just don't want to have to "worry" about them physically. I agree with PP that I would love to be able to just deposit $$ in a 529 plan instead. I thought of getting a safety deposit box to store them in...

[HallsofVA]

I agree that savings bonds are a PITA. My MIL buys every grandchild a savings bond on their birthday and another one for christmas. I am very grateful to her for thinking about her grandkids in such a thoughtful way, but it is a pain to keep track of. She's not the tech savvy type, so even getting her to purchase I bonds isn't a good option.

We just had FIL set up a 529 plan for our son, and have suggested that they put the savings bonds funds into that account going forward. We'll see if that works come christmas time this year!

Might be an option if the bonds are coming from family members, but you can't really do that with friends.

[miki]

You can convert paper bonds into electronic form with an account through the Treasury Dept. They will keep track of when the bonds mature and pay them directly to your bank account.

http://www.treasurydirect.gov/indiv/research/indepth/smartexchangeinfo.htm

[overcome]

OMGoodness! This might be the answer to my prayers! Thank you so much for posting this. I am off to check it out right now!!

[mommyoftwo]

Thank you so much for posting that. Now if I can only find my savings bonds. What happens if you don't know where the papers are?

[cleo27]

I really don't understand them too much. My new job has a program where I can buy them for half price - I guess that might be a better option than just regular savings or cds for DD?

Do you think I should buy some for half price? You just choose how much of your pay you want to go for that, and when you have enough to purchase one, it automatically does.

Thanks in advance for any advice!

[overcome]

Hmmmm..do you realize that when you purchase, for examplke, a $50 savings bond, you only pay $25? That is how the savings bonds work..you pay 1/2 of the face value and when it matures, it is worth the whole face value.

If this is the deal your job is offering you, it is not a deal, that is how much anyone would pay. The benefit is they automatically purchase them for you...convenient. If you only have to pay $12.50 for a $50 savings bond, THAT is a deal.

My knowledge is pretty limited too, but I hope the above info helps! I'd rather put $$ in a 529 college savings, but I am clueless about $$/investments. I DESPRETELY (sp) need to make an appointment with a financial advisor.

[HallsofVA]

I'd doublecheck the type of savings bonds that you'd be purchasing through the payroll deductions before making your decision. There are different types of savings bonds, and some sell for 1/2 their face value ($25 for a $50 bond) while others sell for face value ($50 for $50 bond).

If you're truly getting a half price deal, then by all means take advantage of it. But if it's the normal bonds that sell for 1/2 face value anyway, then all you're saving is the hassle of buying the bonds yourself.

treasurydirect is a great place to learn about savings bonds and other treasury securities. For example, you can see that Series EE bonds purchased online, sell at face value, while paper EE bonds sell at 1/2 face value.

[Melanie]

My favorite are the ones Dd got recently. They said (gag) PATRIOT BONDS.

[Melanie]

You can just cash them in and do that. I think that is what my parents did as a child (cash them in and put $$ into savings). I would imagine you would not lose, much, from what the person paid.

[KBecks]

I agree they are hard to keep track of, and I think a mutual fund would grow more. OTOH, I love getting savings for my sons rather than stuff.

I'm going to check into that tracking program.