Does a savings bond accure interest monthly or only at maturity?
Hi, The Savings Bond Guru here from SavingsBonds.com The other posts are correct in most of what they said, there is no such thing as a 7-month savings bond. You might be confusing it with CDs. Keep in mind the following rules of your savings bond idea as well: – Savings Bonds purchased today earn interest on a monthly basis. – You cannot cash in a savings bond if it is less than 1 year old. – Cashing in a savings bond that is less than 5 years old carries a 3-month interest penalty. I’ve spoken in the past with a treasury department who actually works with the calculations and the rates of return with Savings bonds and you’re right, its confusing to the average investor. If you want to learn more about your savings bonds, you should really go check out the web site www.Savingsbonds.com and its Information center. You’ll find over 100 pages on US Savings Bonds. Good Luck!
