What should I do with my old savings bonds?
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Question: What should I do with my old savings bonds?
I am 37 and I have a couple thousand dollars worth of savings bonds just sitting in my strong box from when I was a kid. How can they be re-invested without paying taxes on the income?
Q&A:
Answer by cainvest1
go to savingsbonds.gov and you will see options available to you including rollover over the bonds. You will have to claim the interest on the bonds when you cash them in. Just make sure you cash them in before they stop paying interest.
Answer by Thor
If you are talking about EE bonds, not all of them are the same. Some of the older ones were issued with a minimum interest rate or rates based on different benchmarks that in today’s low interest rates they are still paying rather well. You will notice that different issues have different pictures on them.
Later ones pay less on shorter term floating rates.
EE’s stop paying interest after 30 years.
You may be able to convert matured EE bonds to HH bonds and not pay taxes on the accrued interest to date but HH pay current taxable interest to you from then ongoing. But HH bonds are only paying 1.5% and some older EEs had a 4% minimum.
You will need to go the Treasury’s website and identify all your bonds to determine what you have, what they pay, and when they mature.
Personally I believe you never go broke paying taxes on profits. Sometimes people hurt themselves financially working so hard to avoid paying taxes they lose profits.
I’d just cash them and buy dividend paying stocks myself.
Good Luck
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