How to Reinvest a Savings Bond

Savings bonds are a patriotic way to put your money to work for you. When you purchase a savings bond, you are literally supporting the United States of America. And Uncle Sam won't let you down. A savings bond will never be worth less than what you paid for it. There are many perks to investing in a savings bond. But once the bond matures, that doesn't mean your money has to stop working for you.

Instructions

Difficulty: Easy

1. Stay on top of your savings bond. Interest rates change every six months, and so does the value of your savings bond. Right now, there's no way to track the value of a savings bond online, but your local bank should be able to tell you how much it's worth.
2. Cash it in. When your bond has matured and is no longer drawing interest, take it to your local bank and redeem it. The money will be direct deposited into the bank account of your choice.
3. Apply the money from the savings bond to your new investment. You can even apply that money to more savings bonds if you would like. There are many different investment options out there. Each one has its own set of advantages and disadvantages. Once you decide where you want to invest, open the account and fill out all the necessary paperwork.
4. Consult a professional about tax liabilities. Taxes on savings bonds are deferred until maturity. Now that you've redeemed your bond, you might be liable for taxes. A professional can help you sort through all the paperwork.