twoinanddone said:“If the savings bonds are in the student’s name, don’t they have to be listed as a student asset every year and thus assessed at 20% toward the financial aid formula? I’d think it would be best to use them up quickly.”
^^ I was wondering that too? I do report them on the fafsa, is that right? Honestly my kids probably only have around 1000 or so in their name only, the majority are in my name, their mother.
Although EE bonds earn various amounts, depending on when they where bought, one important consideration is that after 20 years the Treasury doubles an EE bond’s purchase value. Even if interest accumulation has not been sufficient to reach that point. That means, if you hold an EE bond for 20 years you would earn 3.6% minimum, even if the stated rate is less than that. Every time I think of cashing in the bonds I accumulated through a job 15 years ago that had an EE bond purchase direct from your paycheck deal, I remind myself to hang in at least 5 more years.
“Treasury guarantees that an EE Bond will be worth at least its face value after the first 20 years. If an EE Bond does not double in value (reach its face value) as a result of applying the fixed rate of interest for those 20 years, Treasury will make a one-time adjustment at the 20 year anniversary of the bond’s issue date to make up the difference.”
In case anyone hasn’t found this, you can also tell what your bond is worth here:
https://www.treasurydirect.gov/indiv/tools/tools_savingsbondcalc.htm
Not all EE bonds were scheduled to double. I think I had some that cost $18.75 and were $25 bonds. Long gone now, but I thought I had some like that.