We received a few savings bonds for a gift from 1987, when is a good time to deposit them / cash them?

Question

We just got married this past Saturday and my our grandparents gave us $1000 worth of savings bonds that were purchased back in 1987. Is it better if we just keep them and let them continue to mature and become worth more? Or is it better to deposit them now and throw them into a 3% earning savings account? How do I know which would earn more? The value by now may be a little over the full $1000 but we're not quite sure how much nor are we sure how to find out.

Does anyone have a good idea of what's best to do with this? Cash it or keep it for a while longer? Thank you for your help in advance!

Answer 1

I had a similar experience several months ago.  Typically, savings bonds, depending on the type and when they were bought, earn between 3-4% interest.  My recommendation is to cash them out and put them in an interest bearing account.  You can find several online savings accounts or money market accounts that will earn 4-5%.  Also, try www.checkingfinder.com.  It will list several banks close to you that offer checking accounts that offer 5-6% interest.  I would also recommend going to http://www.savingsbonds.gov/indiv/tools/... to figure out how much your bonds are worth and to see when the next interest accrual will take place.