How to Determine When to Cash a Patriot Bond
U.S. Patriot Bonds were introduced on Dec. 11, 2001, just three months after the terrorist attacks of Sept. 11, as a way for Americans to make a contribution to the anti-terrorism effort. A portion of each Patriot Bond purchase goes into a general government fund that is also used to fund various anti-terrorism operations. If you bought a Patriot Bond in honor of Sept. 11, learn how long you will have to wait before redeeming it.
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Instructions
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Check the date of issue on your Patriot Bonds. Patriot bonds are the same as standard EE Savings Bonds except that they have the words "Patriot Bond" printed on the top of the bond. Patriot Bonds were introduced on Dec. 10, 2001, just three months after the terrorist attack of Sept. 11.
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Redeem your Patriot Bond if it has been at least one year since the bond was issued. The earliest you can redeem a Patriot Bond is one year after the date of issue. If you cash your Patriot Bond after only a year, you will receive the purchase price of the Patriot Bond, which will be less than the bond's face value.
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Redeem your Patriot Bond before it is five years old and you will receive the purchase price of the bond, as well as any accrued interest. A penalty for cashing your Patriot Bond before it is five years old is that you will lose three months of accrued interest.
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Cash your Patriot Bond after five years to receive the full purchase price of the bond, as well as any accrued interest. There is no penalty for redeeming your bond after this period has elapsed.
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Wait and redeem your bond once it has matured. If you are exceptionally patient and able to wait the 30 years for your bond to fully mature, you will be able to redeem your bond in full at that time without penalties.
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Tips & Warnings
Cash your Patriot Bond by taking it into your local financial institution or sending it to the Federal Reserve directly.
Do not attempt to cash your Patriot Bond before it is at least 12 months old.
