savings bonds-family issues About This Page:

[EmpressLizBunny]

i have been getting them from my grandmother for years but i don't like having them around in paper form in case of fire, flood or other unforeseen problems
what i want to do is put them in my savings account they ARE mine but my dad thinks he has some right to them (and i think he might be able to cash them and i'm missing a few)
my parents always said that they were for me and what i wanted but they never let me cash them before but im 18 now so i think i could do it without their permission
also does anyone know if u can cash/deposit them at any bank on the back they say "it may be paid 6 months after its issue date, upon proper identification and request,by any financial institution qualified as a paying agent" so im kinda confused
i have $1000 in them
but they don't fully mature before 2034 im sorry but i don't think i can hold out that long


(sorry if this is in the wrong place i didn't know where to put it)

[Happymommy]

My sons have them. The only thing I know is that if you cash them before their maturity date, you will not get the face value (which is why your dad may be saying you can't cash them until you are 18). So, yes you can cash them 6mths later, but you may only get half or a little more (maybe 2/3rds) of the face value-- you won't get $1000.00

I had some as a kid as well, and my parents kept them from me (and my husband's kept them from him too hehehe) until a year before our weddings (I was 25). That's how we paid for the furniture in our home (its funny how both of our parents did the same thing).

[EmpressLizBunny]

i AM 18!

[luv2sail]

Here's a website you might want to take a look at: http://wwws.publicdebt.treas.gov/BC/SBCPrice It's a savings bond calculator. You can put in all the info on your bonds and see how much you would really get.

One thing to keep in mind...you will most likely be responsible for paying the income tax on these bond. What will happen is, in Jan. 2007 you will get a paper from the bank that will show the info on the bonds that were cashed and then when you do your income taxes you will be responsible for paying the taxes on the money you received. Now given the fact that you are not 21 and you probably don't pay income tax just yet I'm not sure how that will work. Perhaps your parents will be reponsible for paying that money. You might want to check with the bank before you do anything.

Now, a little advice from someone who was once a crazy teen who cashed in a whole bunch of savings bonds before they matured....When I was about 18 or 19 I went into my Mother's safe box and took a whole bunch of my savings bonds. I went down to the bank and cashed them in. I then used the money to buy some pretty stupid things....I remember one was a radar detector! I got in a ton of trouble with my Mom when she found out. And the way she found out was when we got the income tax papers from the bank. Yes, it was my money but I did something pretty dumb. Had I waited until those bonds matured I would have gotten a whole lot more money. Now my brother on the other hand waited until his matured. What did he buy with his? A HOUSE! I have to admit....I was pretty jealous and pretty mad at myself for what I had done.

I still have a few smaller bond left. Being married with a child I could really use the money but I'm determined to wait it out this time and get the full value. I know that 2034 seems such a long time off but believe me, it's worth the wait.

I hope you don't think I'm lecturing you in any way. I just want you to be sure you understand what you're doing. I've been in your shoes and I just wanted to share my experience with you.

Good luck with your decision.

[LizardCop]

[b]To find out how much money the bonds can be redeemed for, go to this link

http://www.savingsbonds.gov/indiv/planning/planning.htm

and scroll down to the Savings Bond Calculator link and follow the directions.

I downloaded the savings bond wizard years ago and installed it on my computer. As new bonds come in, I enter them and it gives me an inventory of what is in the fire safe as well as letting me know what the current redemption value of the bonds are.

You used to be able to redeem the bonds after 6 months, but you would only get a tiny amount for them. For example, a $100 bond is bought for $50. After a number of years it's worth $100. If you cash it in after the mandatory 6 month wait, you would only get somewhere around $50.55 for it, the $50 that it took to buy it and the tiny amount of interest. So if you have $1000 in face value right now, and none of them are mature, you would only be looking at $500 plus the little interest that each bond has earned since it's issuance.

Bonds issued in the past couple of years can only be redeemed after being held for at least one year.

This link will give you more information of series EE bonds

http://www.savingsbonds.gov/indiv/pr...nds_glance.htm


Most bonds come with two names on them (both co-owners and can cash them). If they are (or were) issued to a minor, they might require BOTH parties to be present before they can be redeemed for money, check with the financial institution before you redeem them.

Check with the bank you want to redeem them at to make sure they will do it, not all financial insitiutions will redeem Savings Bonds. We have 3 locally that won't do it becuase of various reasons...

[Jennifer2003]

If you don't end up cashing them in (which I would wait as long as possible so you get the most money) then I'd go to Office Max and buy a fire proof lock box to keep them in at home. They're pretty cheap, depending on size. When my brother moved last year, my mom got him one for around $15.

Jennifer

[GATechGal]

I totally agree with Cheryl. Wait until they mature. You'll be glad you did. My DH had several bonds from his grandmother and we cashed them in after we were married (they had already matured). We were able to buy dining room furniture. But like Cheryl mentioned. Be careful about the taxes. It was the only time we were audited because we forgot to include it in our income. [img]/ubb/images/graemlins/crazy.gif[/img]

[Happymommy]

[ QUOTE ]
i AM 18!

[/ QUOTE ]

I didn't say that you couldn't cash them (I don't think I did, I have to go back and reread-- sorry if I did), but you won't get the face value for them.

Editing, because I re-read it. Sorry it was 4am-- what I meant was that may be why your dad is saying you can't cash them now.