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?
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- If I Redeem My Series Ee Savings Bonds For Cash, What Percent Of The Interest Is Taken Out For Taxes?
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- How Long Before A Series Ee Us Treasury Savings Bond Matures? Does It Earn Interest After Maturity?
Series EE savings bonds issued in 1990 are currently earning 4.00% interest. The interest on savings bonds is EXEMPT from state and local income taxes.
You can go to:http://www.treasurydirect.gov/BC/SBCPric…
and use the calculator to determine the current value of your bonds.
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.