Can you cash Series EE bonds at a bank?
You may be able to cash in paper EE bonds at a bank where you have an account or through TreasuryDirect. Ask your bank about its process for cashing savings bonds. Ask your bank how much it will cash at one time. Determine the identification or other documents you will need.
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.
Electronic savings bonds can be purchased online through Treasury Direct. Existing paper bonds are still valid and will earn interest for 30 years from the issue date or until redeemed. You can however continue to cash your savings bonds at Citizens National Bank.
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 |
Some banks, including Capital One, don't cash savings bonds at all; others will only do so if you've had an account at the bank for more than 12 months.
You can cash in an EE savings bond after you've owned it for one year—but the longer you own the bond, the more you'll earn. Paper Series EE savings bonds: You may be able to cash these bonds in at your bank if it provides that service. You can also cash them in by mail through TreasuryDirect.gov.
The only option for cashing electronic savings bonds is by logging in to your TreasuryDirect account online. If you have paper savings bonds, you can fill out the appropriate form and mail it and the bonds you want to cash to the Treasury Retail Securities Services — the address is listed on FS Form 1522.
If you hold savings bonds and redeem them with interest earned, that interest is subject to federal income tax and possibly federal gift taxes (highly unlikely as the per-person cap is $10,000 and the gift tax exemption is $17,000).
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. See Cashing EE and I savings bonds. To find out how much your paper EE savings bond is worth, use our Savings Bond Calculator.
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.
Is there a penalty for not cashing in matured EE 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.
If you want full value, you should hold the Series EE bonds at least until maturity, and if you want extra, you can hold them until 30 years. But once 30 years have passed, it's a good idea to cash them in because you won't get any extra benefit.
After 20 years, the Patriot Bond is guaranteed to be worth at least face value. So a $50 Patriot Bond, which was bought for $25, will be worth at least $50 after 20 years. It can continue to accrue interest for as many as 10 more years after that.
You can report the interest each year you earn it or when you cash the bond. You will report it on Schedule B of your 1040. You can avoid these taxes by using the money for qualified higher education expenses.
Chase will cash U.S. savings bonds for customers who have banked with Chase for more than a year. But there are limits on how much in savings bonds can be cashed and how much money you can get on the spot.
Citing potential fraud, banks are making it increasingly difficult to pay out savings bonds. An unlikely beneficiary is the federal government.
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.
TO CASH BONDS FOR A DECEDENT'S ESTATE:
Series EE, Series E, and Series I bonds can be cashed at a local financial institution. Some of these transactions may have to be forwarded for further processing. Series HH and Series H bonds must be sent to one of the addresses shown at the bottom of the following page.
Series EE savings bonds have a total maturity period of 30 years from the issue date, consisting of an original maturity period and one or two periods of extended maturity, which vary depending on the issue date of the bond. The interest on an outstanding bond ceases to accrue 30 years after its issue date.
We guarantee that the value of your new EE bond at 20 years will be double what you paid for it. (If you have an EE bond from before May 2005, it may be earning interest at a variable rate. See more at EE bonds.) We guarantee that the interest rate of an I bond will never fall below zero.
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.
The interest on EE bonds isn't taxed as it accrues unless the owner elects to have it taxed annually. If an election is made, all previously accrued but untaxed interest is also reported in the election year. In most cases, this election isn't made so bond holders receive the benefits of tax deferral.
Do the address and Social Security Number on the bonds have to match the customer's address and Social Security Number? Not necessarily. The customer may have moved or the bonds may have been a gift and contain the purchaser's information.
The rate you'll pay on bond interest is the same rate you pay on your ordinary income, such as wages or income from self-employment. If, for example, you're in the 37% tax bracket, you'll pay a 37% federal income tax rate on your bond interest.
You can cash in (redeem) your EE bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.
References
- https://time.com/personal-finance/article/savings-bonds-guide/
- https://investment-bond-shop.co.uk/trusts-inheritance-tax-planning/
- https://www.frbservices.org/resources/treasury/faq/savings-bond-redemptions.html
- https://www.usatoday.com/money/blueprint/investing/how-are-i-bonds-taxed/
- https://brainly.com/question/43169480
- https://sciaccalaw.com/do-i-need-to-pay-income-taxes-on-my-inheritance/
- https://www.treasurydirect.gov/savings-bonds/manage-bonds/death-of-owner/inheriting-bond/
- https://www.forbes.com/advisor/banking/savings/tax-for-savings-account/
- https://www.ecfr.gov/current/title-31/subtitle-B/chapter-II/subchapter-A/part-351/subpart-B
- https://www.irs.gov/forms-pubs/about-form-8815
- https://www.usatoday.com/money/blueprint/investing/how-to-cash-ee-bonds/
- https://www.mjcpa.com/the-ins-and-outs-of-series-ee-savings-bond-taxation/
- https://www.kiplinger.com/taxes/how-are-inherited-ee-or-i-savings-bonds-taxed-kiplinger-tax-letter
- https://www.skynova.com/learn/taxes/cash-deposits
- https://www.treasurydirect.gov/savings-bonds/cashing-a-bond/living-estates/
- https://www.investopedia.com/ask/answers/052515/how-savings-account-taxed.asp
- https://www.raisin.com/en-us/blogs/using-high-yield-savings-account-to-grow-your-money-faster
- https://karplaw.com/the-scoop-on-u-s-government-savings-bonds/
- https://www.quora.com/How-much-cash-can-be-deposited-into-a-savings-bank-account-per-year-without-being-taxed-by-the-Internal-Revenue-Service-IRS
- https://www.hrblock.com/tax-center/irs/forms/file-without-missing-form-1099-int/
- https://www.treasurydirect.gov/savings-bonds/manage-bonds/death-of-owner/non-administered-estates/
- https://www.kiplinger.com/investing/bonds/i-bonds-vs-ee-bonds
- https://www.americasfavoriteea.com/post/how-to-avoid-paying-taxes-on-u-s-savings-bonds
- https://www.ibank.ca.gov/bonds/exempt-facility-bonds/
- https://corvee.com/blog/do-you-pay-taxes-on-savings-bonds-when-cashed/
- https://www.quora.com/If-I-deposit-3k-every-month-cash-into-my-bank-account-will-I-get-audited-reported-to-the-IRS
- https://www.treasurydirect.gov/savings-bonds/cashing-a-bond/old-bonds-from-other-series/
- https://www.citizensbank.com/learning/how-to-cash-savings-bonds.aspx
- https://www.treasurydirect.gov/help-center/glossary-for-savings-bonds/
- https://www.cnbbank.com/discover-cnb/savings-bond-info
- https://www.investopedia.com/articles/investing/061013/know-your-cost-basis-bonds.asp
- https://www.irs.gov/pub/irs-pdf/f8815.pdf
- https://finance.yahoo.com/personal-finance/pros-cons-high-yield-savings-accounts-142347412.html
- https://www.investopedia.com/articles/tax/10/interest-income.asp
- https://www.cbsnews.com/news/how-much-is-too-much-money-for-a-high-yield-savings-account/
- https://www.treasurydirect.gov/1099/
- https://www.treasurydirect.gov/savings-bonds/ee-bonds/
- https://www.cbsnews.com/news/why-you-should-deposit-10000-into-a-high-yield-savings-account-now/
- https://www.terrysavage.com/ask-terry/i-bond-beneficiaries-and-general-questions/
- https://www.irs.gov/faqs/interest-dividends-other-types-of-income/savings-bonds/savings-bonds-1
- https://www.treasurydirect.gov/forms/sec0050.pdf
- https://www.businessinsider.com/personal-finance/how-bonds-are-taxed
- https://www.wsj.com/buyside/personal-finance/do-i-get-taxed-on-a-high-yield-savings-account-de5edcdd
- https://www.usnews.com/banking/articles/if-you-deposit-a-lot-of-cash-does-your-bank-report-it-to-the-government
- https://www.treasurydirect.gov/savings-bonds/manage-bonds/changing-information-hh-bonds/
- https://www.baldwincpas.com/insights/content/when-tax-due-series-ee-savings-bonds
- https://www.treasurydirect.gov/forms/savpdp0064.pdf
- https://www.experian.com/blogs/ask-experian/how-to-cash-in-savings-bonds/
- https://www.treasurydirect.gov/savings-bonds/ee-bonds/1980-through-1995/
- https://www.fool.com/investing/how-to-invest/bonds/savings-bond-maturity/
- https://www.forbes.com/advisor/banking/how-to-redeem-savings-bonds/
- https://www.ceauthority.com/StudyGuideContent/FAQS/AML%20glossary_0205.pdf
- https://www.treasurydirect.gov/savings-bonds/manage-bonds/death-of-owner/
- https://www.vtcpa.com/insights-perspective/how-series-ee-savings-bonds-are-taxed
- https://www.hrblock.com/tax-center/irs/audits-and-tax-notices/tax-dictionary-form-1099-int-interest-income/
- https://money.howstuffworks.com/personal-finance/budgeting/how-to-cash-in-savings-bonds2.htm
- https://www.fool.com/the-ascent/banks/articles/heres-what-happens-if-you-cash-too-many-bonds-at-once/
- https://www.treasurydirect.gov/forms/sec0011.pdf
- https://www.treasurydirect.gov/savings-bonds/manage-bonds/changing-information-ee-or-i-bonds/
- https://www.kiplinger.com/taxes/how-savings-account-interest-is-taxed
- https://www.cbsnews.com/news/can-you-avoid-taxes-on-savings-account-interest/
- https://www.nytimes.com/2023/10/07/business/cashing-savings-bonds.html
- https://www.investopedia.com/terms/t/taxexemptinterest.asp
- https://efprgroup.com/news/article-publication/tax-services/how-series-ee-savings-bonds-are-taxed/
- https://fergusonfinancialinc.com/financial-planning/us-savings-bond-tax-trap/
- https://www.freshbooks.com/hub/taxes/minimum-interest-to-report-to-irs
- https://galligan-law.com/what-happens-to-savings-bonds-when-the-owner-dies/
- https://www.treasurydirect.gov/savings-bonds/cashing-a-bond/
- https://www.sofi.com/learn/content/what-happens-if-i-deposit-more-than-10000-dollars/
- https://treasurydirect.gov/savings-bonds/cashing-a-bond/financial-institutions/
- https://www.coloradoestateplanning.com/blog/2023/03/what-happens-to-savings-bonds-when-the-owner-dies/
- https://www.capitalone.com/learn-grow/money-management/how-to-cash-in-savings-bonds/
- https://www.experian.com/blogs/ask-experian/do-you-get-taxed-on-your-savings-account/
- https://www.treasurydirect.gov/savings-bonds/buy-a-bond/
- https://www.bankrate.com/banking/what-is-a-high-yield-savings-account/
- https://www.irs.gov/refunds/using-your-income-tax-refund-to-save-by-buying-us-savings-bonds
- https://www.treasurydirect.gov/savings-bonds/manage-bonds/treasurydirect/td-tour-individuals/purchase-complete/
- https://www.investopedia.com/ask/answers/111314/how-are-savings-bonds-taxed.asp
- https://www.wikihow.com/Change-a-Beneficiary-on-an-EE-Bond
- https://www.schwab.com/learn/story/your-guide-to-bond-taxes
- https://www.fool.com/investing/how-to-invest/bonds/patriot-bonds/
- https://smartasset.com/taxes/how-can-i-avoid-paying-taxes-on-savings-bonds
- https://ttlc.intuit.com/community/taxes/discussion/do-i-need-to-report-interest-less-than-10-to-irs-and-indicate-on-1040/00/32589
- https://www.fidelity.com/tax-information/tax-topics/interest-income
- https://smartasset.com/checking-account/how-to-avoid-tax-on-a-savings-account
- https://altmanassociates.net/understanding-inherited-savings-bonds/
- https://www.bankrate.com/banking/savings/when-to-cash-in-series-ee-savings-bonds/
- https://www.taxact.com/support/1190/form-1099-int-interest-earned-for-the-year-is-10-or-less
- https://www.cnn.com/cnn-underscored/money/how-to-cash-a-savings-bond
- https://treasurydirect.gov/savings-bonds/comparing-ee-and-i-bonds/
- https://www.kiplinger.com/taxes/604926/taxes-on-i-bonds
- https://www.nerdwallet.com/article/banking/ask-a-nerd-how-do-i-cash-a-savings-bond
- https://www.alllaw.com/articles/nolo/wills-trusts/must-pay-income-tax-inherited-money.html
- https://finance.yahoo.com/news/inherited-savings-bonds-taxes-going-140033272.html
- https://www.bewinvest.com/blog-2/inherited-savings-bonds
- https://www.freep.com/story/money/personal-finance/susan-tompor/2023/05/23/fake-savings-bonds-how-to-cash-banks-treasurydirect/70233192007/