Dear Dr. Don,
I have three $500 saving bonds that date back to 1975. The bonds are now worth around $2,500-plus each. What should I be doing with them, cash in and buy more, or leave as is? If I am to cash in for more, am I taxed on the money?
– Rick Redemption
Dear Rick,
Series E savings bonds issued in 1975 stopped earning interest in 2005 at the bond’s final maturity. There’s no point in holding on to them and giving the government an interest-free loan.
If you deferred interest on the savings bonds until maturity, the interest income was taxable in the year the bonds reach final maturity. The TreasuryDirect Web page, “Treasury Securities that have Stopped Earning Interest,” describes the savings bond issued dates that have since matured. When you cash in the savings bond, the financial institution will issue a Form 1099-INT for the interest earnings.
The 1099-INT should reflect the year the interest earnings became taxable — that is, the year the bonds matured.
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Albany Federal Employees Credit Union strives to provide members with every opportunity necessary to get ahead in their finances. With Albany Federal Employees Credit Union right beside you on your financial journey, success is the only option. Today, they’re offering a great money market account interest rate of .80% APY.
In order to earn the stated APY, there is a minimum $2,500 deposit and account balance required. The money market account from Albany Federal Employees Credit Union is a tiered account, meaning the more money in your account, the more interest you may earn. Rates are effective as of March 15, 2011 but are subject to change at any time at Albany Federal Employees Credit Union’s discretion. Please contact the credit union directly for more information.
Albany Federal Employees Credit Union was officially opened in Southwest Georgia in 1934 in order to serve federal employees and their relatives in the Dougherty County area. By
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The US Labor Department said that consumer prices climbed a higher-than-expected 2.7pc in March from a year before.
Almost three quarters of the rise was due to surging food and petrol prices, with petrol costs climbing 5.6pc, the ninth straight month of increases. Food rose 0.8pc in March, the largest gain since July 2008.
A survey of 41 economists by Bloomberg had on average expected annual inflation to hit 2.6pc.
David Wyss, the New York-based chief economist at Standard & Poors, said the inflation was largely as expected, adding: “The Fed is not going to see inflation as a threat so they have the freedom to keep interest rates low longer. But core inflation is creeping up from its lows six months ago, so the Fed is going to end its extraordinary measures. There will be no QE3 [a third round of quantitative easing].”
The consumer price index’s monthly rise was 0.5pc, in line with economists’ expectations, the ninth consecutive increase. Cor
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A new report released by the American Automobile Association (AAA) has revealed the cost of operating a vehicle is 3.4 percent higher than a year ago. According to the Auto Club report, a variety of issues are to blame for the increase, including rising gas prices and even bad deals on vehicle resales.
Average Annual Cost to Own a Car $8,776
AAA’s 2011 “Your Driving Costs” revealed the average annual cost to own and operate a sedan (not including auto loan payments) in the U.S. rose to $8,776 this year. That number represents a 1.9 cents per-mile increase over last year to 58.5 cents per mile, based on 15,000 miles of driving per year.
The increase in car ownership costs were attributed to the following:
- Rising gas prices: Gas prices alone fueled an 8.6-percent increase to an average of 12.34 cents per mile to operate a sedan.
- Tire costs: Keeping good tires on a car is more expensive due to the increasing cost of raw materials, energy and transportation. The r
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Tennessee Commerce Bank has a good money in the bank deal if you are looking for a high yield savings account. Their best savings account has the following interest rates:
$250 to $99,999 1.50% APY
$100,000 to $249,999 1.55% APY
$250K and over 1.60% APY
This interest rates are effective April 1 according to the rates page of the bank. According to the bank representative, this high interest savings account requires a relationship checking. Their consumer checking account requires an opening deposit of at least $250 with the first set of checks free of charge. You need to maintain the balance of at least $250 so you can avoid a monthly service fee of $25.
One good news about this savings account is that it is being offered nationwide. Interested individuals from any part of the country can complete an application online. Funds can be sent via wire
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