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This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

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Series EE savings bonds

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: My son received a $50 Series EE savings bond as a gift. He also has a small Uniform Trust to Minors Account (UTMA) at a bank. Should the savings bond be deposited into the UTMA to save on taxes?

A: Probably not. The income from the savings bond will probably not be taxable anyway. Address this question again when your son's total assets exceed $10,000 and might cross over into taxable status. Keep in mind that while UTMAs are a great way to save on taxes, another way is for the parent to purchase the EE bonds directly. Interest is not taxable if the funds are used for education. There is a good chance that is what the relative who gave the savings bond intended, so just leave it alone to accumulate value for now.


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