Q: My daughters are headed to college this fall, and I need to redeem some savings bonds that were purchased before everything went electronic. Our bank says it doesn't deal with savings bonds anymore. How do I go about cashing them in?
A: The U.S. Treasury switched to electronic savings bonds in 2012, and many banks will no longer redeem paper bonds. But several major banks still redeem them for customers, and some will even redeem them for noncustomers, up to certain limits. You should be able to find a bank that will redeem the bonds in your area.
For example, Citibank branches will redeem an unlimited amount of Series E and EE savings bonds for customers who have had a Citibank account for at least six months. Noncustomers and those who have been customers for less than six months can redeem up to $1,000 in bonds.
Bank of America branches will also redeem an unlimited amount of savings bonds for customers who have had an account for at least six months, and up to $1,000 per day for noncustomers and those who have had an account for less than six months. BB&T will redeem paper bonds for both customers and noncustomers. Contact the bank branch to find out what information you need to provide, such as a driver's license or other photo ID.
If you can't find a bank that will redeem your savings bonds, you can mail them to: Treasury Retail Securities Site, P.O. Box 214, Minneapolis, MN 55480-0214. You'll need to have a certifying officer at a bank where you have an account certify your signature in the “request for payment” section on the back of each bond. You'll also need to provide your Social Security number. See the Treasury's fact sheet at www.treasurydirect.gov for more information about redeeming savings bonds and special rules if the bonds are not in your name.
If your savings bonds are electronic, just log in at TreasuryDirect.gov and follow the directions. The cash amount can be credited to your checking or savings account within two business days of the redemption date.
FAQs
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 you still cash in paper savings 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? ›
If you're cashing in a paper savings bond of $1,000 or less, you'll need FS Form 1522 and a copy of your driver's license, passport, state ID or military ID. If the bond amount is more than $1,000, you must have your signature certified by a notary or certifying officer.
How much is a $100 savings bond worth after 30 years? ›
How to get the most value from your savings bonds
| Face Value | Purchase Amount | 30-Year Value (Purchased May 1990) |
|---|
| $50 Bond | $100 | $207.36 |
| $100 Bond | $200 | $414.72 |
| $500 Bond | $400 | $1,036.80 |
| $1,000 Bond | $800 | $2,073.60 |
| Total Price | Total Value | Total Interest |
|---|
| $50.00 | $69.94 | $19.94 |
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.
What is the easiest way to cash savings bonds? ›
You can redeem a savings bond online at the Treasury Department's TreasuryDirect website, 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'll need government-issued identification to prove that the bond is yours.
How do I avoid taxes when cashing in savings bonds? ›
You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.
What is the penalty for not cashing matured savings bonds? ›
While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.
Will Bank of America cash savings bonds? ›
Can I redeem a Federal Savings Bond at a Bank of America financial center? To redeem a bond you must be the owner or co-owner of the bond and you must have an active checking or savings account with Bank of America.
Series EE savings bonds are a low-risk way to save money. They earn interest regularly for 30 years (or until you cash them if you do that before 30 years). For EE bonds you buy now, we guarantee that the bond will double in value in 20 years, even if we have to add money at 20 years to make that happen.
How long does it take for a $50 savings bond to mature? ›
SERIES I BONDS ISSUED SEPTEMBER 1998 AND THEREAFTER All Series I bonds reach final maturity 30 years from issue. Series I savings bonds earn interest through application of a composite rate.
Should I wait 30 years to cash in savings bonds? ›
Although they technically mature after 20 years, these bonds actually don't expire for 30 years. You'll keep earning interest for an extra decade. As long as you cash in your bond at the maturity date, you can guarantee your investment will double.
How do I redeem paper savings bonds? ›
A paper savings bond must be cashed for its entire value. At a bank: Banks vary in how much they will cash at one time – or if they cash savings bonds at all. With us: We have no limit on the value or number of savings bonds you can cash at one time as long as the bonds meet the requirements for cashing.
Why is my savings bond worth so little? ›
There are two primary reasons a bond might be worth less than its listed face value. A savings bond, for example, is sold at a discount to its face value and steadily appreciates in price as the bond approaches its maturity date. Upon maturity, the bond is redeemed for the full face value.
What is the final maturity of a $100 savings bond? ›
U.S. Savings Bonds mature after 20 or 30 years, depending on the type of bond: Series EE bonds mature after 20 years. They are sold at half their face value and are worth their full value at maturity. Series I bonds are sold at face value and mature after 30 years.
Is there a penalty for not cashing an EE bond after 30 years? ›
While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.
What happens to EE bonds after 30 years? ›
If you still have a paper EE bond, check the issue date. If that date is more than 30 years ago, it is no longer increasing in value and you may want to cash it.
