question about EE savings bond and circuit city.

[Semidevil]

now, I have no idea on how this works, so this might sound a bit dumb.

about 10 years ago, 1994, My dad went to Circuit City and brought some home electronic. It came with a 50 dollars EE savings bond. Now this was about 10 years ago, so we just came to america and could barely speak any english. But from what we could understand, the sales guy told us that if we come back and give him the bond in 10 years, he will give us our fifty dollars. Is that how savings bond work? Maybe we misunderstood or something...........


In the school newspaper, I always see advertisements saying that the savings bond will be worth more then 5x it's worth in the future..........but I thought that was like a government thing, and not a "circuit city" thing..............

so what do I do w/ the bond?

 

[minendo]

You have to cash them at a bank so they can look up the current value. I doubt the savings bond is worth more than $35 at the moment.

 

[Semidevil]

Originally posted by: minendo
You have to cash them at a bank so they can look up the current value. I doubt the savings bond is worth more than $35 at the moment.

so I guess I dont take it to circuit city???

 

[minendo]

Originally posted by: Semidevil

Originally posted by: minendo
You have to cash them at a bank so they can look up the current value. I doubt the savings bond is worth more than $35 at the moment.

so I guess I dont take it to circuit city???

NO. You take it to a bank that cashes savings bonds. There are many saving bond value calculators available on the web so you can check the current value.

 

[SludgeFactory]

here's a calculator

the govt. website is www.savingsbonds.gov

No, you can't cash it at CC (they will look at you like you're crazy)

 

[krunchykrome]

Originally posted by: Semidevil
now, I have no idea on how this works, so this might sound a bit dumb.

about 10 years ago, 1994, My dad went to Circuit City and brought some home electronic. It came with a 50 dollars EE savings bond. Now this was about 10 years ago, so we just came to america and could barely speak any english. But from what we could understand, the sales guy told us that if we come back and give him the bond in 10 years, he will give us our fifty dollars. Is that how savings bond work? Maybe we misunderstood or something...........


In the school newspaper, I always see advertisements saying that the savings bond will be worth more then 5x it's worth in the future..........but I thought that was like a government thing, and not a "circuit city" thing..............

so what do I do w/ the bond?

EE bonds generally have the lowest interest rates regarding bonds. A "series I bond" would have earned you a little more interest. Basically, if you were to buy a $50 series EE bond today, it would be purchased at $25, and could be redeemed on a maturity date for $50. Series EE bonds are purchased at half the face value and are matured at face value over a long period of time. Series I bonds are purchased at face value and earn a higher rate of interest. The maturity date for your bond since it was purchased in 1994 is 18 years. 18 years from 1994, it can be redeemed at a bank for $50. If held over 17 years, or whatever maturity date the bond has, interest is earned and it can be redeemed for more that the face value of the bond.

 

[ViRGE]

krunchykrome, how would an 18 year old bond compare to inflation, i.e. if I purchased a bond in 1986, how would it have done compared to the inflation rate?

 

[krunchykrome]

Originally posted by: ViRGE
krunchykrome, how would an 18 year old bond compare to inflation, i.e. if I purchased a bond in 1986, how would it have done compared to the inflation rate?

A $50 pair of sneakers in 1986 would cost $about $85 this year. Obviously, the interest rate cant keep up with the inflation rate.