EE Series Bonds Value certificates are government-backed bonds that offer a safe, reliable investment to consumers. These bonds usually accrue a rate of return that is around 4 percent. These bonds are handy investments, as they can be cashed in quite easily, according to some rules and regulations. The value of these bonds can then be converted to assist with educational expenses, retirement expenses, or other common expenses. This flexible, low-risk type of investment is an attractive option for people who don’t want to gamble in the stock market to generate extra income. Now, let’s look at some ways to cash in an EE Series Bond for optimum return.
If you choose to cash in your bond after 12 months, you may not be getting the most out of your investment. You are not allowed to cash in, or redeem, a bond before one year has passed, and the bond will not reach its full value after only a year. Try to hang on to your bonds for longer before you redeem them. There are can be cash penalties for redeeming EE Series bonds too early!
If you wait 5 years to cash your bonds, you won’t face any fees for cashing in too early. At this point, your bond still won’t be at its peak value. These bonds are designed to be help for 20 years or more – the longer you wait, the more you will get back. Plan ahead and buy your bonds early, then let them grow as you age. After 20 years, you bond will be at maturity – this makes redemption of the bond a great idea.