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Article: Savings bonds quaint but not such a good deal
- Article from:
- Post-Tribune (IN)
- Article date:
- May 13, 2007
- Author:
CopyrightCopyright, 2007, Post-Tribune. All rights reserved. REPRODUCTION PROHIBITED. (Hide copyright information)
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THIS ELECTRONIC VERSION MAY DIFFER SLIGHTLY FROM PRINTED VERSION
I'm often surprised at the number of people who continue to invest systematically in savings bonds through their paychecks.
Savings bonds are one of the widest held savings products and have historically been a financial staple of many first communions, bar mitzvah and graduations across the U.S. But savings bonds have changed, and the truth is that they just aren't a good deal anymore.
As most of us know, Series EE Savings Bonds are bought at a discount to face value, and then mature to face value depending on an interest crediting rate. After the bond reaches maturity it will continue to accrue interest for up to 30 years. ...