1. Accurate method.
2. Cash Method.
IF you are in a lower tax bracket, you may want to be taxed on the interest income EACH YEAR as it accrues. IN SOME SITUATIONS, A VERY SMALL AMOUNT OF TAX OR NO TAX WILL BE DUE if the income is reported each year, depending on the value of the bonds. Always be sure to talk to your financial advisor before making any tax decisions.
That question doesn't make any sense.
After you cash in savings bonds, you can do whatever you want to with money. However, the interest earned will be taxable in the year that the bonds are cashed.
The two are unrelated. Yes, you can cash out savings bonds. What you then do with the money is your decision.
Yes
