FOUND $$$$ (Savings bond)-- want opinions

[KingOfDelco]

So i got some good news last week. My dad called to say he had found a savings bond made out to me stashed away in a box in a closet... Probably from when my grandparents died in 2000.

Anyway, its a "Series EE" $1,000 bond, which basically means, they paid $500 for it, and over 30 years it will appreciate w/ interest to $1000.

So heres the question, its valued at $665 right now, i'd have to wait another 20+ years for it to make it up to $1,000. I'm not hurting for $$$ right now (tho i may been in the near future, lawlz) so I could just hold onto it...However, say my house burns down, I would lose it all.

I'm probably just going to cash it out and deposit it into my savings account, or possibly open up a higher interest Orange Account (i hear lots about these, whats the deal?).

Either way, I figure putting the money in a nice interest account is a better decision that keeping it in a shoebox in my attic until 2030...i may not even be alive by then.

Anyone good with money want to give me some advice?

[05OCsrt-4]

get a safety deposit box at your bank and put it in there

[twastheglow]

That's hard to say. I high yielding savings account wouldn't be a bad idea. The question is...will an account like that appreciate more than it would on it's own by 2030. That's what I would look into.

[05OCsrt-4]

Originally Posted by twastheglow

That's hard to say. I high yielding savings account wouldn't be a bad idea. The question is...will an account like that appreciate more than it would on it's own by 2030. That's what I would look into.

well you pretty much have to do the math, the highest interest amount savings account availible is INGdirect with 3%, you have to see if you'd make more money keeping it where its at now or in that 3% savings account, plus i believe they give you $25 just for signing up with them

[The Captain]

Take the money now!! Inflation alone will devalue the bond to the point that waiting 20some years will probably make it worth less.

[CHAOS]

Originally Posted by The Captain

Take the money now!! Inflation alone will devalue the bond to the point that waiting 20some years will probably make it worth less.

you think inflation is going to rise that much in 20 years?

[twastheglow]

Originally Posted by 05OCsrt-4

well you pretty much have to do the math, the highest interest amount savings account availible is INGdirect with 3%, you have to see if you'd make more money keeping it where its at now or in that 3% savings account, plus i believe they give you $25 just for signing up with them

Exactly. That's what I was saying.

[KingOfDelco]

Captain- good point, i kindof glanced over that... thanks.

05CSRT-4 : it wouldnt get any interest in a safe deposit box tho. i want my money to work for me and make more of itself. ya dig? Thanks for that info on the Orange savings account. 3% is pretty sweet, think I'm def transferring at least half of my savings into one of those. Are there any drawbacks?

Twastheglow- i did a lil bit of research. my current savings account int. rate is like .5. The intresest rate of the bond is like 2.6. If I can get my savings account up over 10gs, then i can get a higher interest rate.

In a savings account, it wouldn't appreaciate as much as the bond would on its own by 2030, but in a savings account, there is no risk of losing it--either by natural disaster or inflation, etc...

I think in a CD i could get much better interest, but its the deal where you can't get at your money (even if you need it) until it runs the course.

[The Captain]

Originally Posted by CHAOS

you think inflation is going to rise that much in 20 years?

yes. especially if the fed continues the monetary policy they put in act the past few years. Inflation is 2-3% each year. $1000 in 20 years will be like 700-750 (if that) of today's money, so is 20 years worth $100? I think not.

[The Captain]

Originally Posted by KingOfDelco

I think in a CD i could get much better interest, but its the deal where you can't get at your money (even if you need it) until it runs the course.

Not true. You can take it out when ever you want, you just lose the interest you've earned. And plus, you can put it in cd's with durations as low as 3 months. If things are so volatile that that money may be needed in 3 months, maybe you shouldnt be saving.

[CHAOS]

lol if the fed continues on the path they are on the entire country will collapse so i dont think a savings bond will be an issue at that point

[twastheglow]

Originally Posted by KingOfDelco

Captain- good point, i kindof glanced over that... thanks.

05CSRT-4 : it wouldnt get any interest in a safe deposit box tho. i want my money to work for me and make more of itself. ya dig? Thanks for that info on the Orange savings account. 3% is pretty sweet, think I'm def transferring at least half of my savings into one of those. Are there any drawbacks?

Twastheglow- i did a lil bit of research. my current savings account int. rate is like .5. The intresest rate of the bond is like 2.6. If I can get my savings account up over 10gs, then i can get a higher interest rate.

In a savings account, it wouldn't appreaciate as much as the bond would on its own by 2030, but in a savings account, there is no risk of losing it--either by natural disaster or inflation, etc...

I think in a CD i could get much better interest, but its the deal where you can't get at your money (even if you need it) until it runs the course.

If the bond is @ 2.5% and you can get a savings account @ 3%, I think you know the answer.

[KingOfDelco]

Originally Posted by CHAOS

you think inflation is going to rise that much in 20 years?

Honestly, yes i do. I think inflation is going to go CRAZY!

Just think how much gas and food prices have gone up in the last year or 2.... now follow the exponential curve another 10 years.

Its all related to fuel prices, imo... The farmers/food producers have to pay more to transport their goods via. trucking, thus they have to raise their food prices. Then fuel prices will go up again, and repeat the cylce.

We're going to see prices in all different markets rise alarmingly over the next 20 years. Especially if the dollar keeps tanking, the euro keeps rising, and China finally puts it all together and becomes the worlds premier economic superpower.

[CHAOS]

you do realize that we can vote to change this crap right?

bush isnt going to be president forever... and granted both of the current candidates are worthless... change will have to happen.

[The Captain]

Originally Posted by CHAOS

lol if the fed continues on the path they are on the entire country will collapse so i dont think a savings bond will be an issue at that point

We might not collapse, but the recession they've been tryin to fight will be even stronger.

[CHAOS]

theyre failing miserably. i whole heartedly think our economy is going to take a HUGE **** within the next 5 years.

[The Captain]

Originally Posted by CHAOS

theyre failing miserably. i whole heartedly think our economy is going to take a HUGE **** within the next 5 years.

I agree 100%.

[TrboChicsRock]

Originally Posted by The Captain

Take the money now!! Inflation alone will devalue the bond to the point that waiting 20some years will probably make it worth less.

So with that in mind, having a savings account is pointless? Since the money I have in there now is going to be worthless in twenty years I might as well spend it now!

[TROLL]

is no one else caught up in the fact that he has a savings bond that is taking 30 years to mature? ouch...

[marshallpre1]

you can figure out the present value of that $1000 you will get in 20 more years or figure out the future value of that $665 if put into a CD for 20 years. You just need to make a few assumptions on interest rate/inflation rate. Then you can decide pretty easily.