Savings Bonds-US Savings Bonds

3 Responses to How do savings bonds work?

1. Sarah E
   February 10th, 2006 at 11:02 am

   A savings bond is what like grown ups do; they sacve money and put more money into it; your savings bond is basically for what you’ll need like a houese/apartment, college, and all the important adult stuff that adults do.

2. mister ed
   February 13th, 2006 at 6:13 am

   ok since it is coming from the school it will only be worth 250 if you could cash it the day you receive it since series e bonds are sold at half there face value — than after year if you want to cash it you can and you will receive about 252 dollars!!! should it be a series i bond which is unlikely it will actually be worth the 500 dollars but you still will not be able to cash it for a year!!! with either bond the longer you keep it the more it will be worth and you can keep it for up to 30- years!!!

3. Al in NC
   February 14th, 2006 at 9:16 am

   Since you are only 10 years old:

   Basically it is a loan to the government.
   They pay you interest on the loan.
   The bond is just proof that you loaned the government money and are entitled to repayment at a later date.

   Most likely the bond will be a U.S. Series EE Savings Bond.
   A paper Series EE bond is purchased for 1/2 of the face value so a $50.00 bond actually cost $25.00.

   A savings bond reaches “FINAL” maturity 30 years from date of purchase.

   For additional information go to:

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