Who may cash a bond for a child?
You may cash a savings bond for a child (a minor under the age of 18) if all of these statements are true:
- The child is too young to understand a request for payment.
- You are the child's parent.
- The child lives (resides) with you OR you have been granted legal custody of the child.
What do I have to write on the back of the bond?
As the parent, you must write the statement below on the back of the bond.
As you do that:
- Put the child's name in the appropriate places.
- Write the phrase about either residing with you or having legal custody, whichever is true of your situation.
- Use the appropriate pronoun for the child.
- Write in the child's age.
- Provide the child’s Social Security Number.
This is the statement you must write:
I certify that I am the parent of [child's name].
[Child's name] resides with me
OR
I have been granted legal custody of [child's name].
[She / he] is ___ years old and is not of sufficient understanding to make this request.
[Child’s name] has the Social Security Number ___-__-____.
How must I sign the bond?
Sign the request with your name "on behalf of [child's name], a minor."
Where can I cash the bond?
| Can you find a bank or other financial institution that will cash the bond? | Do this |
| Yes | Ask the bank to cash the bond for you. |
| No | Ask us to cash the bond for you. |
If you need us to cash the bond for you
- Fill out FS Form 1522, providing the information above in “What do I have to write on the back of the bond?”
- Read the instructions on the form about certifying signatures. If it says you need to have your signature certified, wait to sign the form until you are with the certifying official.
- Send the filled out and signed form with the bond(s) to:
Treasury Retail Securities Services
P.O. Box 9150
Minneapolis, MN 55480-9150
FAQs
As the parent, you must write the following on the back of the bond, putting the minor's name and your name in the appropriate places and using the appropriate phrase about living with or having legal custody: "I certify that I am the parent of [minor's name].
How to cash in savings bonds for a minor? ›
As the parent, you must write the following on the back of the bond, putting the minor's name and your name in the appropriate places and using the appropriate phrase about living with or having legal custody: "I certify that I am the parent of [minor's name].
Can parents cash children's savings bonds? ›
So with our Children's Bonds you can cash in the investment early, but there is a penalty for doing so. You'll have to pay a penalty equivalent to 90 days' interest on the amount cashed in. So before you renew the investment, consider if you may need to cash in early on behalf of your child.
Do I need a separate TreasuryDirect account for my child? ›
The Minor account is linked to your primary TreasuryDirect account and only you, as the custodian, can access the account. You, acting on behalf of the minor, may purchase, redeem, receive gift deliveries, and perform other transactions within the account on behalf of the minor.
How do I cash out paper Treasury bonds? ›
You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks.
Can my parent cash my savings bond? ›
Don't cash the bond.
Payment can only be requested by the parent with whom the child resides or who has been given legal custody.
How long does it take to get money from TreasuryDirect? ›
You just bought a security from the U.S. Treasury. Securities are generally issued to your account within two business days of the purchase date for savings bonds or within one week of the auction date for Bills, Notes, Bonds, FRNs, and TIPS.
How do you avoid tax on Treasury bonds? ›
The Treasury gives you two options:
- Report interest each year and pay taxes on it annually.
- Defer reporting interest until you redeem the bonds or give up ownership of the bond and it's reissued or the bond is no longer earning interest because it's matured.
If the beneficiary has a TreasuryDirect account, the security will be transferred to that account. If the beneficiary does not have an account, he or she may establish an account. Alternatively, a beneficiary named on a savings bond may request redemption.
Can a grandparent open a TreasuryDirect account for grandchild? ›
A child under 18 can have a TreasuryDirect account if the child's parent or other adult custodian has a TreasuryDirect account and sets up a linked account for the child. In TreasuryDirect, you can give anyone either EE or I savings bonds.
How to get the most value from your savings bonds
| Face Value | Purchase Amount | 20-Year Value (Purchased May 2000) |
|---|
| $50 Bond | $100 | $109.52 |
| $100 Bond | $200 | $219.04 |
| $500 Bond | $400 | $547.60 |
| $1,000 Bond | $800 | $1,095.20 |
Log into your primary TreasuryDirect® account. Click the ManageDirect® tab at the top of the page. Under the heading Manage My Securities, click "Redeem securities". On the Redemption page, choose the button beside the security type you want to redeem and click "Submit".
Can you still cash paper bonds? ›
These days, you can only purchase electronic bonds, but you can still cash in paper bonds. There are a few types of bonds you may have: Series E/EE, Series I, or Series H/HH. A series E/EE bond earns a fixed rate of interest for up to 30 years.
What documents do I need to cash a savings bond? ›
In addition to the bonds, you'll need to provide proof of identity, like a United States 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.
How much is a $50 savings bond worth? ›
| Total Price | Total Value | Total Interest |
|---|
| $50.00 | $69.94 | $19.94 |
Both you and your child will need TreasuryDirect accounts. Your child's account will be linked to your own for management. You can purchase electronic I bonds in the linked account for your child. If you'd like to buy paper bonds for your child, you'll need to do so with your tax refund and fill out IRS Form 8888.
