Many people only understand about how savings bond is considered as the safest investment way but they may not have any idea when they are asked about how much is my savings bond worth. This is actually quite sad because it can mislead the people into some wrong expectation. When it comes to investment, it’s really normal that you want your money back at you in greater amount (yes, we are talking about significant difference here), and you surely also expect it to be done within shorter amount of time. However, you should not expect any of those things from savings bonds. And the explanation about that can be seen as below.
Before we carry on, there is a grand rule you should understand first when you are interested in dealing with investment world. The more promising the investment gets, it means that the risk will also get bigger. The promise and the risk always go in the same line. You can’t ever expect to have such safe investment without any risk. Even if you have ever heard about it, be really cautious because it’s likely to be a fraud. And since savings bonds are the kind of safest investment by considering the fact that it’s handled by the government, you can expect that the amount of the investment will not be that great and/or it takes quite a while for your investment to be valuable for you. And yes, savings bonds are a kind of long term investment. It means that you can only taste the sweetness of this investment if you have the time to wait for a long time. So, how much is my savings bond worth?
To understand about such thing, you must notice that the rate for your return is really tiny. It’s been issued from November, 2014 to April, 2015, that the annual rate for Series EE is only 0,1%. It’s really tiny right? Therefore, you should not expect that much from your savings bonds. So, does it mean that the savings bonds are not a good investment? Of course it doesn’t mean that way. Like what has been mentioned before, this investment works long term. If you are willing to wait for a long time, you can taste its sweetness. So, how long should you wait? 20 years, that’s the duration. Once your savings bonds reach 20 years, your investment will be doubled. Let’s say you purchase as much as $1,000 saving bond. In the next 19 years, you will only get 0,1% of return rate which is really tiny. However, you can get $2,000 when your savings bonds reach 20 years. That’s the answer of how much is my savings bond worth.