Should I cash out savings bonds?

[Reel]

I got some savings bonds around my Bar Mitzvah and I found this program that lets you check out their values. The best ones are making 4% interest. It is not a ton of money but I figure I could move it over to a higher yielding account such as a CD or online savings account. I do not have plans to put them into higher education as I believe I am done with education so I can't take them out later without taxes on the interest. Is there any reason why I shouldn't cash them and move them to a higher yielding account?

bonds

 

[her209]

If after the taxes and penalty fees (if any), you still come out ahead, then why not?

 

[Reel]

Originally posted by: her209
If after the taxes and penalty fees (if any), you still come out ahead, then why not?

That is what I figure too but there has to be some catch. Were savings bonds a better interest earner 15 years ago than CDs that it made sense for them to be a gift?

 

[XZeroII]

Talk to an accountant. They will tell you what to do.