How to Cash in Savings Bonds
Cashing in a savings bond (a low-interest loan to the issuer) is easy to do. Since bonds are among the most liquid of investments, and you can cash them in using 2 methods. You can take the savings bond back directly to the issuing authority, such as the U.S. Treasury, or you can take a chance on the secondary market, where bidders may drive up the value of your bonds.
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Instructions
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Cash In Your Savings Bond
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Cash in your savings bond by merely taking it to the bank or financial institution of your choice. While a fee may apply, especially if the bond has not yet matured, some banks may waive this cost if you are a customer in good standing who has met certain requirements.
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Sell your savings bond in the secondary market, which requires that you use the services of a stocks and bonds broker-dealer. While you will have to pay fees and commissions by going this route, you may get a better overall price for your bonds, since the broker-dealer will go onto the open market and try to sell the bonds to the highest bidder.
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Pay for college expenses, such as tuition, with money you have received from cashing in your saving bonds. This may help you to avoid paying taxes on the interest.
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Cash in your savings bond at the nearest branch of the Federal Reserve. You can locate the closest one to you by logging onto the website of the Federal Reserve Board (see Resources below). You will be able to avoid paying any fees or commissions if you choose this method to cash in your savings bond.
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Use the official website of the U.S. Treasury, which is called TreasuryDirect, to sell your savings bonds online (see Resources below). At TreasuryDirect, you can find out important information about your bond before you sell it, such as how much it is worth, when it will mature and when it will stop earning interest. You can also choose to reinvest in different bond programs after cashing your current bond.
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Tips & Warnings
The U.S. Treasury will no longer exchange HH-type bonds for E, EE or I-type bonds, since the HH bond program was discontinued in 2005.
