Which is smarter Savings bond or a Regular Saving Account?

Question

If a savings bond only has it value after a certain amount of time why not just go with a regular savings account?(I really don't know that much about savings bond that's why I am asking so no smart comments.) I really want the best of the two for my kids, and possibly me.I want something that they can go in after they turn a certain age and use it for anything they want. Thanks

Answer 1

Bond is less risky and is usually better adjusted for inflation but at such a time the best thing to rely on would be CDs.

Answer 2

Savings bond hold a higher interest rate. Most savings account only yield about .5 to 2 %. If you have a nice chunk of change put it in a CD

Answer 3

Well, neither pay much in interest. Inflation outpaces both at this time.



A smarter move would be to put your kid's money in CDs if they don't need the money for several years. An even better idea is to put it in money market accounts or mutual funds.



If this is for their future, a 529 college savings plan is the answer.

Answer 4

Depends on how liquid you need it. If you need the money soon, a bond isn't the way to go. However if you are putting it away for the long term, a bond is a better way to go.