How to Cash Saving Bonds

If you have been holding on to any savings bonds for a number of years, it may be time to cash them in. While cashing them is isn’t difficult, you should take a few steps to ensure the process is easy and that you are making the right decision by cashing in your savings bonds.

Instructions

Difficulty: Moderate

1. Determine if should cash in your savings bonds or hold on to them. If your savings bonds have not matured or if they are earning a higher than average amount of interest, you may wan to reconsider cashing in your savings bonds. For example, if you have Series E bonds issued before May 1, 1995, they could be earning up to 6 percent a year. You can’t get a deal like that today. To find out what your saving is earning you can use the U.S. Treasury's savings bond calculator available on the U.S. Treasury website. You also need to consider the tax implications of cashing in a bond with a large balance, and how it will affect your taxes.
2. Decide when to cash your savings bonds. If your savings bonds have not matured, you will want to determine what they are worth and if you are losing anything by cashing them in early. For example, if you cash in a Series EE bond within the first five years, you will lose the last three months of interest.
3. Determine the value of your savings bonds. You can do this online using the U.S. Treasury's savings bond calculator on the Treasury Direct website. You can also find out at your local bank.
4. Find out if you can cash the savings bonds you are holding. If the savings bond is in your name, you will have no problem cashing the savings bond. If the savings bond is in someone else’s name, you must prove that you have the right to cash the bonds. If you are a beneficiary of a deceased bond owner, you will need to bring identification and a certified copy of the owner's death certificate to the bank. If the bonds belong to your very young children, you can sign for them. They may ask you to write a short statement certifying that you child is not of age to cash the savings bonds.
5. Go to your local bank to cash your saving bonds. In most cases, you can cash most savings bonds at your local bank. There will be some bonds that banks are not authorized to redeem in which case they will forward bonds they are not authorized to redeem to their Federal Reserve Bank. It is best to go to a bank where you are an established customer, as banks will have limits on how much they can redeem for non-customers.