Savings bonds?
by admin ~ June 11th, 2008 . Filed under: Personal Finance .
jlmblack asked:
Okay, say I’m gonna apply for some sort of loan. In the paperwork you’re usually asked about you accounts and assets, etc. If I invested a whole lot of money in savings bonds (like the ones your grandma buys you, ee, hh, etc..), do these count as assets? I have a loan app. right in front of me, there is a spot for “Stocks and Bonds”, but these aren’t the same. I’m not looking to purchase stocks or anything. If regular bonds don’t count as assets, I’d rather put my money in a savings account where it would be considered an asset. Sorry this was so drawn out…:-)
Kevin
Okay, say I’m gonna apply for some sort of loan. In the paperwork you’re usually asked about you accounts and assets, etc. If I invested a whole lot of money in savings bonds (like the ones your grandma buys you, ee, hh, etc..), do these count as assets? I have a loan app. right in front of me, there is a spot for “Stocks and Bonds”, but these aren’t the same. I’m not looking to purchase stocks or anything. If regular bonds don’t count as assets, I’d rather put my money in a savings account where it would be considered an asset. Sorry this was so drawn out…:-)
Kevin
June 13th, 2008 at 11:04 am
Savings bonds are assets. They are bonds as the name implies. You can buy bonds for companies or the government. They are loans to the company or government rather than partial ownership represented by stock.
They are assets just like any other investment.
June 14th, 2008 at 10:36 am
I have savings bonds from my grandma and I never placed that information on my loan forms. I would talk to someone to find out. That is really a great question.
June 17th, 2008 at 5:33 am
Yes, savings bonds (that you own… not given to other people) are assets. They are bonds, in fact, although not corporate bonds (which is what you might have thought “stocks and bonds” refers to).
So, yes, go ahead and list this on your application. Simply state: “Savings Bonds: $XXXX face value.” You can also include, if you’re inclined, “(redemption dates vary from 2008-2010)” or whatever.
By the way, US Savings Bonds are not a great investment. They are rock solid, but they don’t earn much. Unless you’re looking to support the United States government, I’d suggest you look at a broader range of investments.
June 19th, 2008 at 5:36 am
Leave the space blank, ask your banker if your bonds can be used as collateral.