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Does Anyone Have Any EE Series Bonds Hanging Around
Guess what if you have EE Series Bonds from 1986, you're in luck! The interest paid on those bonds were higher than today's return. Nearly 12 billion, yes that's right 12 Billion in savings bonds were bought in 1986. Millions of EE Bonds will stop earning interest at various points in 2016 depending when the bond was issued and those bonds need to be cashed. Take note; no one will alert you or send out automatic notices to let you know this is happening. It's up to you to know!
Bonds bought from January through October 1986 had an initial rate of 7.5% for the first 10 years. The rate was set to fall to 6% on newly purchased bonds beginning in November of 1986, so folks really stocked up on the opportunity that lay before them. At the end of the 10 year period on these bonds the rate went to 4%. Not a bad return!!
So, you may be asking; what is a bond really worth? Should I start digging around checking for EE bonds to cash them in? Back in 1986 if you wanted a 50 dollar bond you would make a purchase of a 25 dollar bond for Series EE Bond. So you have been building interest toward the 50 dollar value and beyond.
How much will you get if you cash yours in now? See, I'm reading your mind! It varies considerably on the bond and what interest rates were paid during its lifetime. Using the Savings Bond Calculator at www.treasurydirect.gov, you can determine a bond's current value.
Here are a couple of examples of value:
A $ 50 Series EE savings bond with a picture of George Washington and issued in January 1986 was worth $ 113.06 as of December 2015. The next interest payment is January 2016. A $ 500 Savings bond with a picture of Alexander Hamilton issued in April 1986 was worth $ 1130.60 as of December 2015. The next interest payment is April 2016. Don't forget all bonds bought in 1986 now are earning 4 percent until their final maturity date. Check out the next interest payment for your bonds.
Ok, where can I cash in my new found bond fortune? Check with your local bank first, for non customers, Chase and PNC have a cap at 1K for cashing in non- customer bonds. If you think you are sitting on a great windfall, call your bank first to set up an appointment to cash them in as it takes a few minutes to redeem them. Huge TIP: DO NOT SIGN THE BACK OF THE BOND UNTIL YOU ARE CASHING IT IN AND ARE IN FRONT OF THE PERSON REDEEMING THEM FOR YOU!!!! VERY IMPORTANT
Paying taxes on this new windfall. You will be paying taxes as regular income tax rate on the interest these bonds have earned, so if you have a lot you may want to do the calculations ahead of time.
Good luck with your bond redemption's! Maybe now you will have enough cashed in to make a down payment on a house!!! I can help with house buying!!!
Pam’s a residential agent for over 20 years servicing clients from first timers to retirees covering all aspects of the residential real estate spectrum from listing your home to finalizing your new....