Series EE Savings Bonds for grandkids
I have been purchasing savings bonds for my grandkids for many years. Is this still a good idea or should we stop and pull the money and put in another vehicle?
Terry Says
Please read the article I just posted.
Don’t purchase any more EE bonds. They are a bad deal. The best deal is Series I bonds, with an inflation adjustment that raises the payout rate.
The only “wrong’ thing about putting Savings Bonds in kids names is that they will count against the family in the financial aid formula. You might also consider opening a 529 College Savings Account. Search my columns for details. That won’t have as much of an impact on financial aid, if you name the parents as custodians of the account. (They should contribute too!!)
