- my iParenting
- quick clicks
- article archive
- expert q & a
- community & groups
- research baby names
- prepare a birth plan
- content channels
- ip channel rss feeds
- read birth stories
- read parenting stories
- recommended books
- e-newsletters
- safety recalls
- ip diaries
- ip store
- mom of the month
- dad of the month
- editor's letter
- letters to the editor
From Our Sponsors
- e-newsletters
- Sign up to receive our free weekly e-newsletters
- award-winning products
The iParenting Media Awards program helps parents find the best products for their families.
The Basics About Bonds
Savings Bonds as Investments
By Megan L. Fowler
If you do decide to purchase a savings bond, it is best not to redeem it until its maturity date. The maturity date is a pre-set date when the bond will no longer gain any interest. They can, however be redeemed any time after six months from the purchase date, but then you will be losing that extra interest. "It may take eight to 17 years for the bond to reach full maturity," Peņa says.
Here is quick list of differences between savings bonds and savings accounts from Tracy Stewart, a financial advisor and accountant with Stewart Financial Consulting in College Station/Bryan, Texas:
- You pay income taxes every year on the interest earned in a regular savings account. You do not have to pay income taxes on the interest earned on savings bonds until the bonds are cashed.
- You can get your money out of a regular savings account any time you want. With a savings bond that is issued on or after February 1, 2003, you need to leave your money in Series I and Series EE bonds for at least a year to be eligible for redemption. Bonds issued prior to February 2003 keep their six-month minimum holding period.
- Savings bonds are designed to be a long-term item. That is why they have the six-month and one-year holding requirement. Regular savings accounts can be a short-term or long-term savings vehicles, because you don't have a minimum holding period requirement.
Want to see more?
Comments
There are no comments for this article yet.Be the first to 
|
Post As:
|
||
| Enter your comment below: | ||
| Title | ||
| Comment Text | ||
| CAPTCHA | ||
| Please note that any comments submitted become the property of Disney Family / iParenting and can be edited and posted at our discrection. | ||