Are WWII Defense Bonds still good?

[RED]

I just found a series E war bond dated 1 March 1942. The face amount is $25 and it was purchased by my father. If it is, it will be the only thing I ever received from the SOB in my entire life!
:icon_rolleyes:

[Emri]

One thing the USA has NEVER done, unlike other countries in financial trouble, is to de-value their monetary system. Yeah, we got rid of gold and silver as an exchange medium, but if you have a gold certificate or a silver certificate, it is still legal tender.

Since we have never de-faulted on a loan either, I'm sure it will be honered. There is probably a cut-off date for accrued interest, but it should still be good.

FWIW,

Emri

[John Sukey]

I wonder if it would be worth more for it's collector's value;) After all, it's got to be almost 70 years old. Just like those gas cupons, ration cards, etc.

[PhillipM]

One thing the USA has NEVER done, unlike other countries in financial trouble, is to de-value their monetary system. Yeah, we got rid of gold and silver as an exchange medium, but if you have a gold certificate or a silver certificate, it is still legal tender.

Since we have never de-faulted on a loan either, I'm sure it will be honered. There is probably a cut-off date for accrued interest, but it should still be good.

FWIW,

Emri

I'm not sure about the bond, but the U.S. government has devalued it's monetary system such as with greenbacks in the civil war. Of course inflation devalues the currency and that's effectively devaluing the currency.

http://en.wikipedia.org/wiki/Demand_Note#The_Transition_to_Legal_Tender_Notes


Suspension of Specie Payment
The ability of the government to redeem the Demand Notes in specie came under pressure in December 1861. On December 10 Secretary Chase indicated that war expenditures were far exceeding projections while Federal revenues were falling short.[14] Then on the 16th, news of the British reaction to the Trent Affair reached New York and the major banks, which had been supplying gold to the government in exchange for seven-thirties Treasury Notes and bonds which they had been in turn reselling, saw the demand for their offerings of Union securities drop precipitously. By the end of the month the banks had suspended specie payment on their own banknotes. The Demand Notes then began to appear at Assistant Treasurers' offices in great numbers for redemption,[12] but since the government could not obtain adequate supplies of coin it was forced to follow suit and suspend redeeming the Demand Notes for gold in the first few days of 1862.[9]

[desert guy]

Red: I believe you'll find your WWII Savings Bond is still good, however, I think it stopped earning interest after the 40th year from date of issue, and it will be worth quite a bit more than $25.

[PaFrank]

I believe Desert Guy is correct. Here is a link that may help.

http://www.savingsbonds.com/bond_basics/series-e-savings-bonds.cfm#cashin

[Dan Shapiro]

Here's a link to a calculator. Enter the info, it will tell you how much it's worth. Your bond was given several 10 year extensions (40 years total). So you'll get much more than $25 for it.

http://www.treasurydirect.gov/BC/SBCPrice

[bd1]

My wife's been buying U.S. Savings Bonds for about 30 years. She just lets 'em pile up.. No tax til you redeem.

[Garandy]

I have 3 of them, WW2 WAR BONDS, but they were bought at an antiques store. I think they have to be in your family, for you to cash them?
$25.00 E series, its worth $100.00..no more

[RED]

Thanks guys... looks like it is worth $94.35. I'll probably just keep it.

[John Sukey]

Mentioning inflation, I would think that you get back in real buying power what you would have gotten if the bonds had been cashed at maturity. $25 back in the 50's bought a lot more than it does now.