Funding Grandson’s Account

[gravy train]

I recently bought a $500 savings bond. The treasury direct website say’s it will double in 20 years with a maturity of 30 years. Can someone advise what happens after 20 years as far as interest?

In re to treasury direct is there another option to consider for a grand child? As far as savings. Has anyone opened a minor acount at Vanguard or Fidelity?

 

[Gumby]

I recently bought a $500 savings bond. The treasury direct website say’s it will double in 20 years with a maturity of 30 years. Can someone advise what happens after 20 years as far as interest?

In re to treasury direct is there another option to consider for a grand child? As far as savings. Has anyone opened a minor acount at Vanguard or Fidelity?

This is what Treasury says

For bonds bought since May 2005, we may change the interest rate or the way the EE bond earns interest for the last 10 years of the bond's 30-year life. If we do that, we must do it before the bond is 20 years old.

If you do not want that new interest rate or the new way the bond will earn interest in its last 10 years, you can cash it when it reaches 20 years and has at least doubled what you paid for it. (You can, of course, cash the bond any time after it is 1 year old.)

https://www.treasurydirect.gov/savings-bonds/ee-bonds/may-2005-and-later/

It hasn't been 20 years yet, so we don't know what that "adjustment" may be.

P.S. - a guaranteed double in 20 years is a 3.5% APR. Currently, regular 20 year Treasury bonds are yielding 4.008%