Miles for US Savings Bonds
Jan 17, 2000, 10:10 am
#1
Original Poster
Join Date: Apr 1999
Location: Oak Park, IL
Programs: AA 2 MM LIfetime Platinum, SPG Platinum, Hilton Silver, BA
Posts: 3,585
Miles for US Savings Bonds
For those of you who purchase US Savings Bonds, you can now go to www.savingsbonds.gov and purchase up to $500 at a time and charge to your visa or mc. I bonds (bought at face value) are paying 6.98 % if purchased through 4/30 and are reset every 6 months. Great way to give gifts or save for your kid's college and get miles.
------------------
DtG
------------------
DtG
Jan 17, 2000, 10:50 am
#2
Join Date: Mar 1999
Location: Toledo, OH USA
Programs: UA1K, Marriott Titanium, Hilton Diamond, Million-Miler
Posts: 557
This has already been mentioned. And it is important to note that it is considered a purchase by the CC and not a cash advance. Also there is no charge for postage.
Jan 17, 2000, 11:51 pm
#5
Original Poster
Join Date: Apr 1999
Location: Oak Park, IL
Programs: AA 2 MM LIfetime Platinum, SPG Platinum, Hilton Silver, BA
Posts: 3,585
I couldn't find it posted elsewhere. This is for people who actually are interested in buying savings bonds and can do so by charging rather than cash or a check. It is for the purpose of getting miles as was the case for those purchasing Chase travelers checks. I personally buy bonds for gifts and saving for my daughter's college, so it looks good to me.
------------------
DtG
------------------
DtG
Jan 21, 2001, 6:00 am
#8
Join Date: Oct 2000
Programs: AA - Lifetime Gold
Posts: 1,513
The website has been available for well over a year. They increase the maximum per purchase to $1,000. You can use Discover, Visa, and MC. The I series are selling for 6.49%, not 6.98%. EE are at 5.54% This changed about two months ago. I started buying when the I bonds were in the mid 7% early last year.
Their website explains the difference between EE and I, http://www.savingsbonds.gov/sav/sbieevsi.htm
Their website explains the difference between EE and I, http://www.savingsbonds.gov/sav/sbieevsi.htm
Jan 21, 2001, 7:18 am
#9
Join Date: Feb 1999
Location: T82
Programs: AA Gold, HH Gold
Posts: 2,845
I give Savings Bonds as gifts to our godchildren each year for their birthdays and Christmas instead of some toy they'll forget about or clothing they'll outgrow soon. They all have tidy sums in their college funds now. Earning miles is bonus for being good godparents.
Jan 21, 2001, 9:04 am
#10
Original Poster
Join Date: Apr 1999
Location: Oak Park, IL
Programs: AA 2 MM LIfetime Platinum, SPG Platinum, Hilton Silver, BA
Posts: 3,585
EE bonds are bought at 1/2 the value.---You pay $50 for a $100 bond which at some point is worth $100. The I bonds are bought at face value. You pay $100 for a $100 bond and then it collects interest. Part of the rate is fixed (I think 3.4%) and the other part is linked to the rate of inflation and it gets redone every 6 months, so your rate can change. The EE bonds are a guaranteed rate for the life of the bond. When gas prices started going up last year, it hit 7.49%. It always takes a few weeks to get the bond, so you need to plan ahead if you are doing this for a gift. And again, there is a $30,000 per year limit for each SSN.I didn't know this and the govt called me and I had to have some reisuued under my daughter's SSN joint owners with me - but her name went first.
------------------
DtG
------------------
DtG
Jan 22, 2001, 11:21 am
#11
Join Date: Oct 2000
Programs: AA - Lifetime Gold
Posts: 1,513
If bonds are purchased with the intent to help fund college education for a child, read very closely the requirements. I think the bond should be made out to the parents, not the child, in order to recognize the better tax break.