Taylor Scott
Savings bonds are a low-risk investment option offered by the government, with denominations ranging from $25 to $10,000. While some banks allow you to cash in your savings bonds, not all banks provide this service, and many require you to be an account holder. If your bank doesn't offer this service, you can redeem your savings bonds online through the Treasury Direct website or at a financial institution that caters to non-account holders. To cash in your savings bonds at a bank, you'll generally need to provide the paper bond and one or two forms of identification.
| Characteristics | Values |
|---|---|
| Who can purchase savings bonds? | Anyone who’s 18 or older with a valid Social Security number, U.S. bank account, and U.S. address |
| When can savings bonds be cashed in? | After a single year, but there is a penalty for cashing them in within the first five years |
| How long can you keep savings bonds? | Until they fully mature, which is generally 30 years |
| What types of bonds can be purchased? | Only electronic bonds |
| What types of bonds can be cashed in? | Paper bonds |
| What types of bonds can be redeemed at a bank branch? | Series E, Savings Note, Series EE and Series I |
| What types of bonds need to be forwarded to the Treasury Retail Securities Site at the Federal Reserve Bank of Minneapolis for processing? | Series F, G, J, K, H, HH, Individual Retirement Bonds, or Retirement Plan Bonds |
| What is required to cash in a paper E/EE or I bond? | Proof of identity, like a United States driver’s license, and a notary to notarize and certify your signature on an unsigned FS Form 1522 |
| What is required to cash in a bond that does not list the current name of the owner or beneficiary? | Proof of name change, such as a marriage certificate, driver's license with the current name, and Social Security card with the old name |
| Are banks required to cash savings bonds for non-customers? | No, financial institutions now have the option to not cash savings bonds for both non-customers or new customers |
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What You'll Learn
Not all banks offer the service
If your bank doesn't offer this service, you can redeem your savings bond online at TreasuryDirect or at a financial institution that will cash savings bonds for non-account holders. In addition to the bond, you'll need to provide proof of identity, such as a driver's license, and partner with a notary to notarize and certify your signature on an unsigned FS Form 1522. If you're the beneficiary of the bond, you'll also need to provide supporting legal evidence or other documentation to show you're entitled to cash the bond.
The Treasury Retail Securities Site at the Federal Reserve Bank of Minneapolis can also process your savings bond. Before visiting a bank or financial institution, it's best to call ahead and check if they offer this service.
If you have a paper E/EE or I bond, you can only cash it in full. However, if you're cashing in an electronic savings bond, you can log in to your TreasuryDirect account and use the link for cashing securities in ManageDirect.
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Paper E/EE or I bonds require extra steps
If you have a paper E/EE or I bond, you need to take a few additional steps to cash it in. These bonds are a type of US savings bond, a government-backed, reliable investment available in denominations ranging from $25 to $10,000. They are available to individuals aged 18 or older with a valid Social Security number, US bank account, and US address.
In addition to the paper E/EE or I bond, you will need to provide proof of identity, such as a US driver's license. You will also need to partner with a notary to notarize and certify your signature on an unsigned FS Form 1522, which you can then send to your local bank or credit union. After completing these steps, you can send the unsigned bond along with the signed FS Form 1522, and any supporting legal evidence or documentation, to the US Department of the Treasury. It is important to note that when cashing in a paper bond, it must be cashed in full.
You can also convert paper E/EE or I bonds to electronic bonds using the free online program TreasuryDirect. This offers several advantages, including added security and the ability to automatically receive payment for your bonds when they reach the end of their 30-year life. However, converting to electronic bonds is not required, and you can cash in paper bonds just as they are.
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Banks are responsible for issuing 1099-INT
Banks and other financial institutions are responsible for issuing Form 1099-INT to taxpayers who earn at least $10 in interest income. This form is used to report interest income received by taxpayers, including interest from bank deposits, dividends, and amounts paid to collateralized debt obligation holders. The form must be submitted by January 31st to both the IRS and the taxpayer.
Form 1099-INT includes the recipient's information, such as their name, address, and taxpayer identification number (TIN). It also reports the taxable amount of interest earned, which may include interest from savings accounts, bank deposits, dividends from life insurance companies, and other types of interest.
It's important to note that even if a taxpayer does not receive Form 1099-INT, they are still responsible for reporting any taxable interest income on their tax return. This information can be found by checking bank statements or online account summaries. Additionally, taxpayers should contact the issuing institution immediately if there are any discrepancies in the form to request a correction.
Form 1099-INT is an important tool for the IRS to track taxable interest earnings and ensure that individuals properly report and pay taxes on their income. It is a common document that taxpayers receive during tax season, and financial institutions are required to provide it to any taxpayer whose interest earnings reach the $10 threshold.
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Financial institutions can refuse non-customers
Financial institutions are not required to cash savings bonds for non-customers. They have the option to refuse to cash savings bonds for both non-customers and new customers. Some banks only allow account holders to cash savings bonds, and some stipulate that the account must have been open for a year before savings bonds can be cashed. It is recommended that customers are established for 12 months before cashing bonds at a financial institution.
If a bank does allow non-customers to cash savings bonds, they will typically need to provide two forms of ID. If the name on the bond does not match the name on the ID, proof of a name change will also be required.
If a bank refuses to cash a savings bond, the bond can be redeemed at the Treasury Retail Securities Site at the Federal Reserve Bank of Minneapolis for processing. This is also the case if the bond has been altered or defaced in any way, or if there is a legitimate variation in dates.
The TreasuryDirect website provides information about how to cash savings bonds, and customers can also contact the Treasury directly via email with any questions.
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Series E, Savings Note, EE and I are eligible for redemption by financial institutions
Savings bonds are a great, low-risk way to save money. They are government-backed investments available in denominations ranging from $25 to $10,000. Bonds issued after April 2005 have a fixed interest rate, while older bonds (1997-2005) have a variable interest rate. Anyone who is 18 or older with a valid Social Security number, US bank account, and US address can purchase savings bonds. They can be cashed in after a single year, but there is a penalty for doing so within the first five years.
Series E, Savings Note, EE, and I bonds are eligible for redemption by financial institutions. These are the only savings bonds that still earn interest. EE and I bonds earn interest for 30 years from the issue date, while HH bonds earn interest for 20 years.
If you have a paper E/EE or I bond, you will need to provide proof of identity and partner with a notary to notarize and certify your signature on an unsigned FS Form 1522. After completing these steps, you can send the unsigned bonds, along with the signed form and any other relevant documentation, to the US Department of the Treasury. When cashing in a paper bond, they must be cashed in full.
For electronic savings bonds, you can log in to your TreasuryDirect account and use the link for cashing securities in ManageDirect. You can also convert your paper EE or I bonds to electronic bonds through your TreasuryDirect account.
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Frequently asked questions
Banks are not required to cash savings bonds, and not all banks offer this service. Financial institutions now have the option to not cash savings bonds for non-customers or new customers.
If you have a paper E/EE or I bond, you will need to provide proof of identity, like a driver's license, and partner with a notary to notarize and certify your signature on an unsigned FS Form 1522. You will then need to send the unsigned bond along with the signed FS Form 1522 and any supporting legal evidence or documentation to the US Department of the Treasury.
Series E, Savings Note, Series EE, and Series I bonds are eligible for redemption by financial institutions.
No, if a bond has been altered or defaced in any way, it cannot be redeemed at a bank or financial institution. It must be forwarded to the Treasury Retail Securities Site at the Federal Reserve Bank of Minneapolis for processing.
If your bank can't cash your paper savings bond, you can redeem it online at Treasury Direct or at a financial institution that will cash savings bonds for non-account holders. You will need to bring the paper bond and one or two current forms of identification.
