1. Do the bonds on TreasuryDirect have the same guarantee as paper bonds in that the bond will mature (double the purchase price) after 17 years?
2. When buying bonds on TreasuryDirect, what does the interest rate follow? My wife has a few paper bonds from her first birthday that racked up about 5.4% APY over the past 20 years... The bonds I've got for my son are doing about 2.5% APY.
3. Will buying the paper bonds from the bank rather than on TreasuryDirect in any way benefit my daughter when she cashes them in.
I did see a conversion account moniker for TreasuryDirect where one can convert paper bonds to electronic bonds, but the site lacks information... I didn't even know if, when I put in the $500 bond amount on the initial purchase, I was actually buying a bond for $250 or one that will mature to $1000.
account, you add money and that money earns interest no matter what amount you add... and at 2.6% APY on the ING Direct acct, the advantage of having your money liquid is pretty nice.
Any enlightened souls out there willing to help?