How to Redeem U.S. Savings Bonds

Good old U.S. savings bonds are the ultimate form of rewarded patience. If you're an adult and you've been patiently collecting all those savings bonds that dear Grandma Ethel has been giving you for your birthday since you were born, it may be time to redeem those savings bonds for some serious cash. Luckily for you, redeeming your savings bonds from your local bank or Federal Reserve office isn't half as hard as waiting for them to mature.

Difficulty:

Moderately Easy

Instructions

Things You'll Need

• Proof of identification

Redeeming Your Bond Through Your Local Financial Institution

1. Start the bond redemption process by calling your local bank to see if they offer bond cashing services. Not all financial institutions offer bond cashing services so save yourself plenty of time and frustration by calling ahead. If your bank doesn't cash savings bonds try calling around to other banks in your area to see if they offer the service.

2. Provide your bank with identification that matches your name on the savings bond in question. If your name has changed since the savings bond was issued, you will need to provide identification that matches the name on the bond as well as your current identification.

3. Sign the back of each saving bond you're cashing. Your local bank or financial institution will need to certify your signature before cashing the bond. Once your signature has been certified your bank or financial institution should be able to cash your bond.

Redeeming Your Bond Through the Federal Reserve

1. Redeem your bond through the Federal Reserve. If you weren't able to find a local bank or financial institution that offered bond cashing service, or the amount of your bond was unusually high, you may want to redeem your bond through the Federal Reserve directly. There are two Federal Reserve offices that deal with savings bonds. If you live in the eastern part of the U.S., contact the Pittsburgh Branch of the Federal Reserve Bank at P.O. Box 867, Pittsburgh, PA 15230. If you live in the western part of the U.S., contact the Minneapolis Branch of the Federal Reserve Bank at P.O. Box 214, Minneapolis, MN 55480.

2. Have your signature certified by your local bank or financial institution. You will need to have your signature certified on the back of each savings bond you're redeeming. Signature certification is required is required by the Federal Reserve before any savings bonds are cashed. If you bank is hesitant to work with savings bonds let them know that you are not asking them to redeem the bonds, just certify your signature.

3. Provide your bank with two forms of identification to aid them in certifying your signature on your savings bonds. Be sure to supply your bank officials with at least one picture I.D.

4. Send your savings bonds with your signatures certified to the Federal Reserve Bank that serves your part of the U.S. Since you're mailing a valuable document it's a good idea to purchase insurance and delivery confirmation when mailing your bonds. Then wait. It can take up to three weeks for your savings bond to be deposited to your bank account.

Tips & Warnings

• You have to hold a savings bond for at least a year before you can redeem it. For example, if you buy a savings bond in September, you'll have to wait to cash it until September of the next year at the earliest.

• Bonds cashed before their fifth anniversary are subject to a penalty of the most recent three months of interest. For example, if you purchased your savings bond in 2007 you would have to wait until 2012 to redeem your bonds without a penalty.

Resources

• U.S. Department of the Treasury