I think I also read that you can now buy savings bonds at face value and then they collect interest from there. So you could give someone a $50 savings bond and instead of paying $25 for it and waiting for it to reach face value, you pay the full $50 it would be worth $50 immediately and then continue to accrue interest. Don't remember all the details though.
I agree that they are great for small kids. I have an aunt that always gave my daughters these when they were really small and they now have quite a handful that will reach full value about the time they need them for college. She always figured that the kids had enough grandparents and such to give them toys and immediate gratification things so she planned ahead for them.
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~ Angie |