Should I transfer my u.s. savings bonds to a savings account?

Question

i am thinking about doing it but am not sure if it is a good idea or not... i am getting a savings account at Wachovia and that is where they will be transferred to... any suggestions?

Answer 1

1-you would have taxable income the minute you cash in the savings bond.

2-there are only 2 months each year you can cash in savings bonds without losing 5 months worth of interest income - it used to be May and November. just leave the money in the bond until you really need to spend it - no sense cashing it just to re-invest it and you're probably making a higher int rate than any savings acct would pay

Answer 2

I would base my decision on the rate you will be earning on the bonds vs. savings account.  

I know that some of the bonds do not earn off a set rate and are dependent on the economy, so I would compare the average return you are getting.  You could call 1-800-4USBOND for all the info you need on your bonds.

So, I guess my answer would be - after you do a lil' research (if you haven't already) I would make my decision based on your findings.

Have a great day!