Ask Terry Questions Series EE Bonds vs new furniture

Series EE Bonds vs new furniture

By Terry Savage on September 17, 2019 | Wild Card

Hi Terry,

I recently just purchased a row home and I have series EE bonds that date back to 1992. I am thinking of cashing them in to buy furniture, but before they stop earning interest (30 years). Is this a bad idea? Or should I wait until they reach full maturity?


Terry Says

Do not cash in bonds from the 1990s before they eventually mature and stop paying interest.  They all have a very high “floor” rate (along with current low accrual rates) but the combination makes them yield a lot more than you could get in a bank today.   And you will owe income taxes on the accumulated earnings.

That’s the financial answer.  Ask yourself this: those bonds will grow in value and your furniture will decline in value the minute you bring it home. Does this make sense??



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