How to Cash In I Bonds

I Bonds provide inflation protection.

If you are worried about inflation in the future, I Bonds can give you the protection you need. These special U.S. Treasury bonds are designed to provide a hedge against future inflation, protect your purchasing power and allow you to maintain your current lifestyle even if prices rise in the future. Learning how to cash in the I Bonds you hold lets you make the most of your money and helps you rebalance your overall portfolio when you need to.

Instructions

1. Check the purchase records for your I Bonds. You can cash in your I Bonds after you have held them for at least one year. Be aware that there is a three-month interest penalty if you cash in your I Bonds within the first five years. For instance, if you cash in your I Bonds after 24 months, you will receive the original purchase price of the bond, plus 21 months worth of earnings. If you wait until five years have passed, you will get the purchase price of the bond plus the full 60 months worth of earnings.

2. Visit the bank where you first purchased your I Bonds and tell the account representative you wish to cash in your I Bonds. Give the bank representative a copy of your purchase confirmation to get the money from your bonds.

3. Log on to your Treasury Direct account if you bought your bonds online directly from the U.S. Treasury. Go to your account and locate the I Bonds you want to sell.

4. Indicate which linked bank account you want to transfer the proceeds of your I Bond sale into. Confirm the information and click "Submit" to complete your sale.

5. Print a copy of your sales confirmation and keep it with your records. Keep the copy of your original purchase confirmation with the sales transaction.

References

• WF Hummel: Series I Savings Bonds
• General Services Administration: Treasury Bonds