Bond Cash-In

Susan says her in-laws have given savings bonds to her daughters for their birthdays. What should they do with these bonds?

QUESTION: Susan in Michigan says her in-laws have given savings bonds to her daughters for their birthdays. What should they do with these bonds?

ANSWER: Cash them in and put them in their college funds? I’m guessing your in-laws gave them to them for purposes of college. Cash them in and put them in whatever the purpose was because savings bonds suck. They’re horrible. It’s a bad return.

My sweet little grandmother, God rest her soul, used to give us a $50 savings bond or a $100 savings bond for our kids’ college. As soon as it sat the required six months, I cashed it in and put it in the mutual fund. When my sweet little granny would ask me how those savings bonds were doing, I would tell her, “They’re doing very well,” which was the truth now that I’d cashed them in and put them in a mutual fund. That’s what I would do with them in your case.