Savings Bonds - Questions and thoughts!

[SaigonK]

Well, a good friend of mine had a baby, and as part of the festivities, we bet what day the baby would come. i had a three day window to choose from. 5/25 - 5/26 - 5/27.

his wife had the baby on 5/28 at like 5:00AM! I missed it by 5 hours.

The bet was if I got it right, he takes me to dinner, if I got it wrong, then i would buy a $100 savings bond for his daughter. As such i just bought two Savings bonds from TreasuryDirect.

1. $50 Series EE Savings Bond.
2. $50 Series I Savings Bond.

Anyone know which is better or the yields? I am no finance wiz, just got them because what i read seemed to be okay.

 

[TWills]

bleh, I should know but my brain isn't working right now.

 

[alent1234]

if it was me I would buy stock as a gift

 

Did you buy a $50 bond, or did you buy a $100 bond for $50?

 

[desk]

i just read an article about this from money magazine. i think I is better right now, but let me check.

 

[desk]

Originally posted by: desk
i just read an article about this from money magazine. i think I is better right now, but let me check.

this is what the article says:

EE bonds (starting may 1) have a fixed rate for the entire life of the bond. the rate is adjusted every 6 months, but once you purchase, you are locked in. i think the current rate is around 4%

I bonds pay a fixed rate (~1%) and a variable rate that is adjusted according to inflation. which means that I bonds probably give you a chance for better yields.

*edit*

doh...i just meant to edit the original, not quote. oh well.

 

[SaigonK]

Originally posted by: jumpr
Did you buy a $50 bond, or did you buy a $100 bond for $50?

I bought two bonds at $50 each. I thought thats how they worked, that $50 was worth $100 but I might be wrong.

 

[desk]

Originally posted by: SaigonK

Originally posted by: jumpr
Did you buy a $50 bond, or did you buy a $100 bond for $50?

I bought two bonds at $50 each. I thought thats how they worked, that $50 was worth $100 but I might be wrong.

yeh, you would buy a bond with a face value of $100 for $50 right now.

 

[SaigonK]

Actually I found it:

Series I bonds are sold at full face value (a $100 bond costs $100),
But Series EE bonds are sold at half face value (a $100 bond costs $50)

So i guess I bought $150 worth of bonds for the new kid.

 

Originally posted by: SaigonK
Actually I found it:

Series I bonds are sold at full face value (a $100 bond costs $100),
But Series EE bonds are sold at half face value (a $100 bond costs $50)

So i guess I bought $150 worth of bonds for the new kid.

Yup, that's why I asked. In that case, give the kid the half-price bond now, it'll be cool for him to watch it mature as they grow.

<-- has about $6000 worth of bonds from grandma that will be maturing soon.

 

[MommysLittleMonster]

Originally posted by: SaigonK
Well, a good friend of mine had a baby, and as part of the festivities, we bet what day the baby would come. i had a three day window to choose from. 5/25 - 5/26 - 5/27.

his wife had the baby on 5/28 at like 5:00AM! I missed it by 5 hours.

The bet was if I got it right, he takes me to dinner, if I got it wrong, then i would buy a $100 savings bond for his daughter. As such i just bought two Savings bonds from TreasuryDirect.

1. $50 Series EE Savings Bond.
2. $50 Series I Savings Bond.

Anyone know which is better or the yields? I am no finance wiz, just got them because what i read seemed to be okay.

The EE bond yeilds a lower interest rate than the series I bond. For the $50 EE bond, you would pay $25 today. For the $50 I bond, you would pay face value ($50). I would just go with the I bond if you must. You decide.