1995 Series EE Saving Bond Redeem Or Hold

t3taylor | Feb 23, 2019 | 5 posts since 2013

I have a $50 US Saving bond issued 04-1995.

According to the Treasury Direct website:

Denom: $50

Issued Date: 04/1995

Next Accrual: 03/2019

Final Maturity: 04/2025

Issuing Price: $25.00

Interest: $39.26

Interest Rate: 4.00%

Value: $64.26

Looking at the Treasury's tables, it doubled it's issue price in October 2012. Can someone help me figure out what the APR and/or APY would be on this? The note its interest rate is 4% does not compute, or I'm not calculating the interest correctly. Basically is it in my best interest to wait until Final Maturity in 2025 or redeem the bond earlier, excluding any tax implications?

Thanks, T

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Answers

AnnO | Mar 2, 2019 | 129 posts since 2018

You will continue to receive 4% interest until the savings bond's final maturity date. There's such a small amount of money involved that it won't make a big difference to you either way, but yes, you should wait unless you can do better than 4% on that money elsewhere right now.

Ally6770 | Mar 2, 2019 | 4,294 posts since 2010

You also will have to pay income tax for all the interest earned when they are cashed in unless you have reported the interest each year when earned. You will receive a statement at the end of the year and quite possibly the day of the transaction also. Check and see if you can still transfer them to a child. About 40 years ago you could do this. He was able to use them for college. Laws and rules change.

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