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<p>[QUOTE=&quot;Numbers, post: 1329688, member: 11668&quot;]One thing worth remembering is that EE bonds are guaranteed to double in value (i.e., reach face value) in 20 years.&nbsp; With interest rates as low as they are today, at 0.6%, that creates some pretty weird bond values over time.</p><p><br /></p><p>For example, if you buy a $1000 face value EE bond today for $500, then in 19 years and 11 months it&#039;ll be worth $563...but one month after that it&#039;ll be worth $1000.&nbsp; So as long as you keep the bond for 20 years, you get something much better than the advertised 0.6% interest rate--it works out to more like 3.5%.&nbsp; Which is pretty good these days for a low-risk investment.</p><p><br /></p><p>(Although, as has already been pointed out, a low-risk investment may not be the best plan for a three-year-old; she&#039;s got a long enough planning horizon that a bit more risk might be acceptable.)[/QUOTE]</p><p><br /></p>

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