U.S. Saving Bonds
Should we buy Bonds for our Grandchildren?
Terry Says
NO! Do NOT buy U.S. Savings bonds -- either Series EE or Series I bonds -- for your grandchildren. It pains me to say this -- but it is the SAVAGE TRUTH! The government changed the way interest is calculated on the bonds, at present locking you into low rates for a long time. Instead go to http://www.savingforcollege.com/and learn about how to open a 529 College Savings Account for your grandchildren. The money grows tax-free if used for college expenses. You can add to it every year. And if the child does not need it for college, it can be used for another child in the family -- or you can take the money back if you need it by paying a 10% penalty on the gains.
