How to Cash in Series Savings Bonds
Many investors own Series I or Series EE/E U.S. Savings Bonds because of their convenience, safety and competitive interest rates. They may be used to save for college or may make up part of an emergency fund. You may have received paper bonds as gifts or bought them through a payroll deduction plan at work. You also can buy electronic bonds through TreasuryDirect. Procedures for cashing electronic bonds are different from those for cashing paper bonds.
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Things You'll Need
- Series I or Series EE/E paper or electronic bonds
- Driver's license or other identification
- Bank account
- Social Security Number
- TreasuryDirect account
Instructions
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Decide which bonds you want to cash. According to the TreasuryDirect website, you can redeem the bonds without penalty after five years. After one year, you may redeem them, but you pay a penalty of three months' interest, according to TreasuryDirect. According to Bankrate, you may want to hold on to older bonds paying higher interest. Check the interest rate on your bonds by using the savings bond calculator available on the TreasuryDirect website.
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Find a bank that cashes bonds. Not all banks do. If you have been a customer for more than six months, that bank will cash your bonds. If you have not, take a driver's license or other documentation of your identity. In this case, the bank limits your redemption to $1,000 at a time.
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Cash amounts in excess of $1,000 by taking some extra steps if you are a new customer at the bank. Sign for payment on the back of the bond before a certifying bank officer and provide your Social Security number. Mail your bonds to a TreasuryDirect retail securities site. Visit the TresuryDirect website for the appropriate retail securities site for your area.
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Log on to your TreasuryDirect account to cash in your electronic I or EE/E bonds. Follow the directions to receive a direct transfer of funds to your bank account within one business day.
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Your bonds are secure until you cash them in. Follow additional procedures to cash your bonds in special circumstances. To cash the bonds of a minor, certify at the bank that you are the parent or legal guardian of a child too young to cash them. If you are a beneficiary, provide a death certificate of the owner. If the bank refuses to cash your bonds, send the bonds to a TreasuryDirect retail securities site.
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Tips & Warnings
If you live abroad. find a bank willing to cash your bonds. Officers in a branch of a U.S. bank can help you. For a foreign bank, request the assistance of a U.S. Consular employee. You must send the bonds back to the U.S. for payment. Follow the instructions on the TreasuryDirect website page on redeeming bonds under special circumstances.
References
Resources
- Photo Credit savings bonds image by Stephen VanHorn from Fotolia.com cash image by Alexey Klementiev from Fotolia.com
