Brandon Lee
Cashing in savings bonds is a straightforward process, but there are a few things to keep in mind. Firstly, savings bonds are a government-backed investment with denominations ranging from $25 to $10,000. They can be purchased by anyone over 18 with a valid Social Security number, US bank account, and US address. These bonds are available to be cashed in after a year, but there is a penalty for early redemption within the first five years. You can redeem your savings bond electronically, by mail, or in person at a bank or credit union. In this paragraph, we will outline the steps to cash bonds at a bank.
| Characteristics | Values |
|---|---|
| Bond type | Paper or electronic |
| Bond value | $25 to $10,000 |
| Bond maturity | At least one year old, ideally after five years to avoid a penalty |
| Bond ownership | Must be the registered owner or beneficiary |
| ID requirements | One or two forms of current government-issued ID |
| Additional documentation | FS Form 1522, notarized signature, proof of name change, death certificate, etc. |
| Bank account | May need to be an account holder at the bank |
| Online redemption | Possible through the Treasury Department's TreasuryDirect website |
| Tax forms | 1099-INT tax forms provided by the bank |
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What You'll Learn
Cashing paper bonds at a bank
You can cash paper savings bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. However, not all banks offer this service, and many only provide it if you are an account holder. Some institutions stipulate that you need to be an account holder for at least a year before cashing a savings bond. It is recommended that you call ahead to check with your bank.
If your bank does not support this service and you have a paper savings bond, you will need to redeem it online at TreasuryDirect or at a financial institution that will cash savings bonds for non-account holders. You can also redeem a savings bond by mail or at your local bank or credit union, if they offer the service. Your savings bond must be at least a year old, and you will need government-issued identification to prove that the bond is yours.
If you are the registered owner of the savings bond, you should bring the paper bond and one or two current forms of identification to a bank or credit union. If you are the owner or beneficiary of a bond that does not list your current name, you will need proof of your name change. Depending on your circumstances, you may need to provide other documentation. For example, for those listed as a beneficiary, a death certificate is needed to process the transaction.
If you have a paper E/EE or I bond, you will 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 to your local bank or credit union. After completing these steps, you can send the unsigned bonds along with the signed FS Form 1522 and, if you are the beneficiary of the bonds, supporting legal evidence or other documentation to show you are entitled to cash the bond to the U.S.
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Cashing electronic bonds
To cash electronic savings bonds, you must have a TreasuryDirect account. You can log in to your account and click on the “Current Holdings” tab to see how much your electronic series EE or I savings bond is worth.
To cash electronic Series EE bonds, log in to your TreasuryDirect account and navigate to ManageDirect. You can then follow the link for cashing securities. You can cash any amount of $25 or more to the penny. If you cash only part of a bond, you must leave $25 or more in your account, and you'll get interest only on the part you cash.
To cash electronic Series I bonds, you can create a TreasuryDirect.gov account or sign in to your existing one. Follow the instructions to have your funds transferred to your checking or savings account via direct deposit.
To cash electronic Series E bonds, you can follow the same process as for Series I bonds. Series E bonds were issued between 1941 and 1980 in paper form only and have been discontinued.
It's important to note that not all banks offer the service of cashing savings bonds, and many only provide it if you are an account holder. Some institutions stipulate that you need to be an account holder for a year before cashing a savings bond, so it's best to call ahead and check with your bank.
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What ID to bring
When cashing a bond, you will need to bring one or two current forms of identification. Government-issued identification is required to prove that the bond is yours. A driver's license is one example of a suitable form of ID. If you are the owner or beneficiary of a bond that does not list your current name, you will also need to provide proof of your name change. For example, you might bring a copy of your marriage certificate, your driver's license with your current name, and your Social Security card with your old name. If you are listed as a beneficiary, you will also need to bring a death certificate to process the transaction.
If your bond is worth $1,000 or less, you can mail a copy of your government-issued identification with your completed form. If your bond is worth more than $1,000, you will need to sign the form in the presence of a notary or authorized certifying officer before submitting it.
If you have a paper E/EE or I bond, you will 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. Then, send the unsigned bond along with the signed FS Form 1522 and any supporting legal evidence or documentation that proves your entitlement to cash the bond to your local bank or credit union.
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How to check a bond's value
Checking the value of a savings bond is a straightforward process. The method for doing so depends on the type of bond you hold, as the process differs between electronic and paper bonds.
For electronic bonds, you can check their value by logging into your TreasuryDirect account. Here, you will either automatically see the value of your bond or need to enter its series, denomination, and issue date.
If you have a paper E/EE or I bond, you will 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. You can then send the unsigned bond along with the signed form to your local bank or credit union.
The U.S. Treasury provides a Savings Bond Calculator on its website, which allows you to input bond details and receive an accurate valuation. This is useful for checking the value of paper bonds, which can also be cashed at most financial institutions, including banks and credit unions.
It is important to note that savings bonds have a low rate of return, and it may be worth waiting until they mature before cashing them in to maximize your returns. Additionally, there are tax implications to consider when redeeming savings bonds, as interest earned is subject to federal income tax.
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Redeeming bonds by mail
Redeeming savings bonds by mail is a convenient option, especially if your bank does not provide this service. The process is relatively straightforward, but there are a few important steps to follow. Firstly, it is essential to understand the different types of bonds and their requirements. Paper bonds, such as Series E/EE, Series I, or Series H/HH, have specific procedures. For instance, Series E/EE and Series I bonds require you to complete and submit FS Form 1522. You can download this form from TreasuryDirect.gov. Make sure to include the names listed on the bond, serial numbers, and issue dates for each bond. Additionally, you'll need to provide your Social Security number and direct deposit information to receive the funds.
When redeeming paper bonds through the mail, you must cash them in full. You cannot redeem only a portion of the bond's value. Along with the completed form, you will need to include a copy of your government-issued identification. If your bonds are worth more than $1,000, each person listed on the bond must sign the form in the presence of a notary or authorized certifying officer. This step ensures the security and authenticity of the transaction.
For Series E/EE and Series I bonds, you can mail the unsigned bonds, along with the signed FS Form 1522, to the Department of the Treasury at the following address: Treasury Retail Securities Services, PO Box 214, Minneapolis, MN 55480-0214. It's important to note that you may need to provide additional supporting legal evidence or documentation if you are the beneficiary of the bonds. This ensures that you are entitled to cash the bonds.
Redeeming Series H or HH paper bonds follows a similar process. You will need to mail the unsigned bonds to the U.S. Treasury at the following address: Treasury Retail Securities Services, PO Box 2186, Minneapolis, MN 55480-0214. Again, ensure that you include the necessary identification and documentation to support your request. Once your request has been processed, the funds will be transferred to your checking or savings account via direct deposit. Typically, the transfer occurs within two business days of the request.
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