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Home > Savings Bonds... old fashion? yes, new way of saving? Oh yes.!
 

Savings Bonds... old fashion? yes, new way of saving? Oh yes.!

January 23rd, 2009 at 03:19 am

years ago i worked for bank as a teller.. one day, a customer came in to cash in her savings bond. Occasionally you get customers who cash in bonds for a few hundred dollars maybe a thousand dollars.. On this particular day, the lady standing before me had over $20,0000 (Purchased price) approx. $35,0000 with the interest in bonds to cash. (wow).....I was amazed!!! Now let me explain that it took approx. 10years for her bonds to gain that much interest.,, what fascinated me the most was her reasoning behind the her choice of savings. She said that when she was 21 and started her 1st job right out of college, her company was offering a direct deduction from their paychecks to purchase savings bonds, she signed up for a deduction of $100 per paycheck ($200 per month..

Over the 10 year period she completely put out of her mind the amounts that were deducted. she received the bonds in mail each month...
Ten years later when she left that job for another job, she decided to cash them in.
so on this day she was cashing in all her bonds plus interest, to buy her dream car ( a Mercedes Benz)

NO CAR NOTE!!(WOW)

How awesome is that? 10 years of forgotten savings, leads to One HOT RIDE!!!

so about 8 years ago i applied her technique,(i actually went to the banks to purchase my bonds up until recently, i now buy online.....treasurydirect.gov,,,, you can do automatic purchases directly from a bank account)

It is great!!! i continue to save money and since its automatic now, i really don't even get the chance to miss the money!!,,
Now i know that getting a Mercedes has no appeal to me.. (frugal... remember?) My hope is to one day use that money as down payment for a home or college tuition for my children (if/when i have some)

Just letting all my FruGal friend know one of my savings tips! Try is out!
You can never miss money you don't see!

5 Responses to “Savings Bonds... old fashion? yes, new way of saving? Oh yes.!”

  1. PRICEPLUS Says:

    Sounds like a great idea. Aside from my savings account the bonds were the only thing to keep paying interest and making money in my portfolio.

    I think bonds make up a part of a diversified portfolio and the automatic savings is great!WinkSmile

  2. baselle Says:

    EE or I?

    Oh, and watch out for the deferred interest when you cash them in all at once. Don't want to charge the taxes because you used all the bonds to make your purchase.

  3. kel8585 Says:

    That's funny. I never really thought of Savings Bonds as old fashion. My grandma always bought me and my siblings savings bonds every once in a while, mainly for Christmas. It helped me pay for 1 year of college, tax free because if you use them for education you don't get taxed on the interest. I still have a couple that I can't cash yet unless I want to pay a penalty. So I'm waiting.

    that is very cool that she was able to buy a Benz with cash! very motivational! Smile

  4. Broken Arrow Says:

    There are a lot of really good bond deals out there that is worth the investigation. I myself should have done that as well, but... haven't. Yet another thing to put on my to-do list there....

  5. LuxLiving Says:

    I love my savings bonds.

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