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Instead, there are interest payments which are added to the bond and you will get the initial investment plus the interest amount at the time of cashing in the bond. The interest is tax deferred and it does not have to be reported in your tax form until you cash in the bond.
In order to determine value of savings bonds, you first have to see the kind of bond purchases. The different types of bonds are A, B, C, D, E, EE, F, G, H, HH, I, J, and K. The value of savings bonds is also dependent on when the bonds are cashed and what sort of interest the investor is getting.
Since 1935, the Treasury department has been issuing savings bonds in alphabetical order. For example, the series A savings bonds were issued in the first year when these bonds were introduced. The next bonds were issued in 1936 and these were series B. Series C savings bonds were from 1937 to 1938; series D bonds were issued from 1939 to 1941. However, the longest running savings bonds were series E bonds which were issued from 1941 to right up to 1980, after which they were discontinued.
Series EE savings bonds were introduced in 1980 as replacement to the discontinued series E bonds. These bonds can be purchases at full face value or half face value and they come in amount between $50 and $10,000.The maturity date of series EE bonds can be anywhere from 8 years to 30 years, and if they are cashed in within the first 5 years of purchase, the investor is penalized -- he is not paid the last three months’ interest. If you purchase series EE savings bonds from a financial institution or a bank, the name changes to Patriot Bond.
Then there are other types of saving bonds like series F, G, H, HH, I, J and K. Series F and G were offered to all investors other than banks.
You can calculate the value of savings bond by taking face value of the bond, the interest rate from the time the bond was issued until present and any penalties that have to be deducted. If a bond was issued at half the face value, it will be worth the face value at the time of maturity. And a bond issued at face value will be worth two times the amount at the time of maturity. Savings bonds can increase in value if they are redeemed after the maturity date. In this case you have to calculate the interest on a yearly basis.
You can also figure out the value of savings bonds by taking the bonds to your local bank. Another way finding out values of savings bonds is through the Treasury Department of website where you can use the calculator and follow the instructions on the site to figure out what the bonds are worth today.
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