(Closed) US Savings bonds for babies?

posted 6 years ago in Babies
Post # 3
Member
7649 posts
Bumble Beekeeper
  • Wedding: July 2012

I got one for my godson 5 years ago. I know this sounds crude, but I got him that instead of giving money towards a college fund becuase I wanted HIM to have the money, not his parents. Like you said, I just think he;’d really like it if years down the road he could go cash it in for what he needed it for.

Post # 4
Member
3885 posts
Honey bee
  • Wedding: September 2011

The rate of return on bonds pretty much sucks.  It’s a nice gift but not as wonderful as it used to be.  But that is the tradeoff you take for making a stable investment.  

You may want to consider a similar dollar value purchase of a corporate stock; you’d want to choose a company with a good chance of still being around when baby is old enough to enjoy having some extra money, as like any stock, there is the risk of going bankrupt leaving you with worthless shares, but you also have the opportunity for massive growth over time. $100 in US Saving bonds bought 10 years ago would be worth about $110 these days; the same money invested in Apple stock would be worth almost $8k.

Post # 5
Member
10366 posts
Sugar Beekeeper
  • Wedding: September 2010

Bond interest rates are historically low, so it won’t make much money. Maybe look into a different investment opportunity.

Post # 7
Member
7649 posts
Bumble Beekeeper
  • Wedding: July 2012

@BuffaloDots:  Well you have my opinion already listed. Honestly, yeah you don’t get a good return on investment, but it’s like giving the kid 100 bucks that you know will be his when he’s old enough and won’t be blown by the parents. Our local bank still gave savings bonds and it was really easy to get one.

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