Quote:
Originally Posted by red-beard
How much does a $50 savings bond cost these days? Do you pay face value, or are you buying it at a discount?
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EE savings bonds are 1/2 face value.
I bonds are face value.
When my aunt gave my son a $50 EE bond I asked her if the bank told her about I bonds. She said yes but liked the EE bonds better. I asked her why because at the time EE bonds were locked at .7% while the I bonds averaged more than triple that. She said the EE bonds were a better deal because she she got a $50 EE bond for only $25 and she would have had to pay the full $50 to get a $50 I bond. At the end of the day she had no clue how the bonds worked and how the interest was calculated.
I agree with the people who said it's mostly grannies buying these and my guess is they have no clue how they work or even what the rate is. The just get them because that is what their parents did back in the day.