I have, let's say, $20,000 in series EE savings bonds, issued in 1995. As I understand it they were purchased for half their face value ($10,000) and have now matured to their full value since it's been twenty years after their issue. They'll continue to gain interest for ten more years, at which point, there's no point in keeping them.

Assuming that that's all correct then my question is... would it be better to sell them now and re-invest that money elsewhere that's likely to yield more money? Or would I be better off letting them stay as they are for ten more years?

I have no pressing need for the money.

  • depends what is the coupon ? – Pepone Feb 14 '15 at 22:10
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    The series EE bonds made a change in May 1995 as to how the interest rate is determined. Was your bond issued before or after May 1995? – Ben Miller Feb 14 '15 at 22:35
  • @Pepone - what is a coupon in this context? – neubert Feb 14 '15 at 23:25
  • @Bin Miller - the bonds say 05 95. They also say 06-01-95 in the dating stamp section. – neubert Feb 14 '15 at 23:27
  • the coupon is the interest you receive – Pepone Feb 15 '15 at 12:35

It looks like the interest rate on bonds from 1995 is at least 1.41%. If it is from the earlier part of the year, the interest rate is 4%. Even if it is the latter, I'd say it is worth keeping, although you could likely do better in a CD, it would lock your money up. I'd consider it a part of my bond allocation in my investments and up the equity a little.

You can use this link to get actual prices and interest rates: http://www.treasurydirect.gov/BC/SBCPrice

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