I don't know, I think the secret will really be out when the guy behind the Starbucks counter explains the savings bond "scheme." http://www.flyertalk.com/forum/wink.gif


On a buying note, if I want to spend $1,000 on saving bonds. Is there a difference between buying 10 $100 bonds or 1 $1000 bond other than the extra paper involved? I guess you have freedom to cash pieces of your investment if you break it into smaller denominations, but will anything else come into play?

No difference. But obviously if you plan on buying $5,000 in EE bonds ($10,000 face value) for yourself at once, it wouldn't make much sense to buy them as 200 $50 bonds. Just buy them in whatever demonination mixture you think is best for you.

It is more work to buy several bonds rather that one on the internet, otherwise go for it.

Seems silly to me. The limit is 45k worth of bonds a year. 30k Series I, 15k Series EE. So I get 1.8 roundtrips locking up 45K of cash at rates under 2% between 4-6 months (assuming you use the credit card grace period to the max)? It is a nice perk, but if I had 45K in cash lying around I wouldn't be concerned with 1.8 roundtrips. I'd be more worried about that analyst who figured AA would be short of cash by the end of 2003. Assuming worst case, what would happen to all those people who have cash in the AA Money Market Fund???

thumper666 - then don't do it.

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Ms.DtG

"what would happen to all those people with money in the AA money market fund"
Nothing. You aren't lending them the money nor do they manage the fund. You get miles there just like with any other partner.

Not completely accurate! Check out this amrcorp website.

http://www.amrcorp.com/facts/sheets/investment.htm

bump, for those new to the board and not knowing about savings bonds.

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Ms.DtG

These savings bonds are a great deal. But why did you have to simultaneously bump three messages on the same subject?

Full info on this "secret" can be found on my web site below, near the top of the Finance page.

Perhaps 'nuff said?

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Any ideas how to do this if i need the money in 11 months now that the new holding period is 12 months.

When putting it on a credit card, you are still only out of pocket 10-11 months.

Each thread has different questions, so I bumped several to make sure all questions were answered. If you already know all the answers you really don't need to read these threads.

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Ms.DtG

A long term suggestion that won't tie-up all you money at once, is to spread out your purchases. Instead of buying, lets say, $24,000 of savings bonds at once, is to buy $2,000 per month. That way you'll always have some bonds you can cash in any given month (after the required holding period).

If you buy the bonds today, you will be able to cash them March 1, 2004. Of course, you won't have to actually pay for them until your credit card bill payment is due.

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