US Savings Bond Value - What Are Your Bonds Worth?
US Savings Bond Value - What Are Your Bonds Worth? By Dee Cohen
Not only will we look at what a US savings bond is but also what the US Savings Bond value is also. A US savings bond is a loan to a company or government which in turn agrees to pay it back at a fixed rate of interest over a fixed period of time. So when someone is purchasing a savings bond in the US they are actually lending money to the United States. The price for purchasing such bonds is half of its actual face value. This means that you pay $50 for a bond that’s face value is actually $100.
Over the last few years the Treasury Department in the US has changed the way in which interest on savings bonds is calculated. So if you were to purchase a EE bond after May 1 2005 the interest earned on this would remain fixed for the life time of the bond rather than it changing every 6 months as they use to. However any bonds that were issued prior to this date will still continue to earn interest under the terms in effect when they were actually issued.
But just how long will it take a US Savings Bond to reach its actual face value?
Unfortunately the original maturity of a bond varies with the Treasury notes’ variable market rate. So it is impossible to predict the actual maturity date in advance of a US savings bond. So if the market rate is higher then the bond will mature that much quicker. However it is normally expected that a EE bond will take no more than 20 years to mature and reach its face value.
During the past it was difficult for people to assess the current value of their savings bonds, but the US Treasury Department now offers people a free software program known as the “Savings Bond Wizard”. This allows people to maintain an inventory of their bonds and so determine their current redemption value, the interest earned, the interest rate and much more.
Also if you are looking at a way to find out what your US savings bond value is you could either use the above free software provided by the Treasury Department or else you could one of the many online calculators which will help to calculate the current value of them.
Dee Cohen is a writer and publisher at http://www.money-rocks.com/savings-bonds-rates.html. Stop by US Savings Bond Value Information and Resource Center.
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