Wednesday, February 18, 2009

What to do with EE Series savings bonds

I have a small sum of money in EE Series savings bonds bought in 1990 I was wondering would it be wise to cash them in and transfer to a CD or just leave them and let them earn interest that way?
      Answer1:Depending on the interest rate your bonds are earning; if they are earning more than what a CD can give you, you should leave the bonds alone.Further, the interest earned is tax deferred, so you do not have to report the interest until the year you cash them. Further, there is no State Tax levied on that interest.In contrast, a CD means you have to report the yearly interest even if you have not or can not pull it out of the CD.
loan Calculator currency converters

No comments:

Post a Comment