Can I Redeem My Savings Bonds Online?
U.S. savings bonds can be purchased in either paper form or electronic form. Paper savings bonds can be bought at banks or through payroll savings plans. Electronic bonds are purchased through an online account established on the TreasuryDirect.com website. Savings bonds cannot usually be redeemed by someone who is not listed on the bond as an owner.
Other People Are Reading
-
Savings Bond Redemption Rules
-
Savings bonds can be redeemed after a bond is one year old. Redemptions within the first five years after a bond is issued will be charged a penalty of the most recent three months of interest earnings. Savings bonds can only be redeemed by a registered owner. If you want to redeem a bond with a different listed name, you must provide documentation that proves you have the right to redeem the bond.
Electronic Bonds
-
Electronically registered savings bonds are purchased using an account set up on the Treasury Direct website. Payments for bond purchases are drawn from a linked bank account. A Treasury Direct account holder can redeem savings bonds in the account that meet the redemption criteria. The proceeds from redeemed bonds will be paid into the linked savings or checking account.
-
Paper Savings Bonds
-
The procedure to redeem paper savings bonds requires the bonds to be taken to a bank or other financial institution for redemption. At the bank, a bank officer verifies the signature and identification of the owner and the bond proceeds are paid by the bank. Paper bonds can also be redeemed by mailing them to the Treasury. Before bonds are mailed, the signature and ownership must still be verified by a bank. Proceeds from mailed in bonds are sent as a Treasury department check.
Convert Paper Bonds to Electronic
-
Paper savings bonds can be converted to electronic bonds using the Treasury Direct SmartExchange program. The owner of paper bonds must open or already have a Treasury Direct online account. From the Treasury Direct account, the account owner must open a Conversion Linked Account. Directions on the Conversion Linked Account direct the savings bond owner to send in his paper bonds and the bonds will be converted to electronic form. After the bonds have been converted, they can be redeemed online in the same manner as bonds originally purchased as electronic savings bonds.
-
References
Resources
- Photo Credit savings bonds image by Stephen VanHorn from Fotolia.com
