To Sell Or Not To Sell: EE Bonds

[yobigface]

Fellow Patriots

A friend asked me what she should do with some EE Bonds recently inherited. They have roughly 8 years until they mature fully and if cashed out now, would be worth a few thousand dollars. They are earning 4% interest per month when not much else is...

My question is, would you hold onto these bonds or take the cash and run with potential economic collapse around the corner?

Just looking for some advice for a financial newbie.

Thanks!

[cubical]

4% a month?? Or do you mean 4% a year, compounded monthly?

I assume the latter, and I would advise him to sell out now.

[ronpaulfollower999]

I sold my bonds and bought silver with the cash.

Of course, always do your own due diligence.

[matt0611]

I also have a bunch of EE bonds that I got as gifts when I was a young boy. They have interest rate of 4% and expire around 6 years.

Since its such a small part of my portfolio and its making me 4% interest per year compared to <1% in the bank I've decided to hold on to them for now.

[Zippyjuan]

I believe Treauries pay quarterly. 4% could be the annual return. Four percent is not bad of a yield right now. Unless you need the money, I would keep them for now. If you sell them you get less than face value (the bonds are sold at less than face value- the difference between the buying price and the face value is how they calculate the interest rate they offer).

[matt0611]

I believe Treauries pay quarterly. 4% could be the annual return. Four percent is not bad of a yield right now. Unless you need the money, I would keep them for now. If you sell them you get less than face value (the bonds are sold at less than face value- the difference between the buying price and the face value is how they calculate the interest rate they offer).

These are not really treasuries, they're non-marketable savings bonds, the interest accrues monthly but is only actually paid once you cash in the bonds. The bonds he has are already matured and can be cashed in for their face value + interest right now. Or he could wait until the cut off date and continue to accrue interest on them until then.