Where Do I Cash In Savings Bonds? Your Comprehensive Guide

Savings bonds are a secure and reliable way to save money, often purchased for oneself or as gifts. When the time comes to access these funds, understanding Where Do I Cash In Savings Bonds becomes essential. This guide provides a comprehensive overview of how to cash in both paper and electronic EE and I savings bonds, ensuring you navigate the process smoothly.

Understanding Savings Bonds and When to Cash Them

Series EE and I savings bonds are long-term investments that earn interest over time. You can cash in your EE or I savings bond once you’ve held it for at least one year. While you can cash them in after just one year, it’s important to understand the implications on interest earned.

Savings bonds are designed to reward patience. If you redeem your bond before it reaches five years of age, you will forfeit the last three months of interest. However, EE and I bonds continue to accrue interest for up to 30 years, making them a potentially valuable long-term savings tool. Therefore, while immediate access is possible, consider the long-term growth potential before deciding when to cash in.

Cashing Paper Savings Bonds

For those holding traditional paper savings bonds, there are a couple of primary methods for redemption: through a bank or directly through the Treasury Department.

Cashing Paper Bonds at Your Local Bank

One of the most convenient ways to cash in paper savings bonds is at a bank, particularly one where you already have an established account. Here’s what you need to do:

1. Contact Your Bank: Start by calling your local bank branch or visiting their website to inquire about their savings bond cashing services. Specifically, ask:

   • “Does your bank cash savings bonds?” Not all banks offer this service, so it’s crucial to confirm beforehand.
   • “What is the limit on the amount you will cash at one time?” Banks often have limits on the value of bonds they will cash in a single transaction.
   • “What forms of identification or documentation are required?” Banks need to verify your identity and ownership of the bonds.

2. Gather Necessary Documents: Typically, you will need to bring:

   • Your paper savings bonds. Important Note: Do not attempt to cash bonds you bought from someone else or through online auctions. You can only cash bonds that you own or co-own, unless you have legal documentation proving your right to cash them.
   • A valid government-issued photo ID, such as a driver’s license or passport.
   • Your bank account information, if you intend to deposit the funds directly.
   • Any other documents as specified by your bank.

3. Visit the Bank: Go to your bank during business hours with all required items. Be prepared to endorse the bonds by signing the back of each bond in the presence of a bank official.

Cashing Paper Bonds Directly Through the Treasury Department

For larger bond values or situations where a bank might not be convenient, you can cash paper savings bonds directly through the U.S. Department of the Treasury. This method is particularly relevant if the total value of the bonds you are cashing exceeds $1,000, as it requires signature certification.

1. Obtain FS Form 1522: Download and complete FS Form 1522, “Request for Payment of United States Savings Bonds.” This form is available on the TreasuryDirect website or through a general online search.

2. Signature Certification (if required): If you are cashing bonds worth more than $1,000, you must have your signature certified. Instructions on signature requirements are detailed within FS Form 1522. Acceptable certifying officers include:

   • An officer of a bank, credit union, or savings and loan association
   • A notary public
   • A certifying officer at a U.S. Embassy or Consulate

3. Mail Form and Bonds: Send the completed FS Form 1522, along with your original paper savings bonds, to the address specified on the form. It is crucial to send copies of any supporting legal documentation, not originals, unless specifically instructed otherwise.

For Special Circumstances:

The TreasuryDirect website provides specific guidance for cashing bonds in unique situations. These include:

• Cashing savings bonds outside the United States: Cashing savings bonds outside the United States
• Cashing a young child’s bond: Cashing a young child’s bond
• Situations involving disasters: Affected by a disaster
• Death of a bond owner: Death of a savings bond owner
• Living estates: Living estates
• Trusts: Trusts

Cashing Electronic Savings Bonds

Electronic EE or I savings bonds, managed through TreasuryDirect, offer a streamlined and digital redemption process.

Redeeming Electronic Bonds Online via TreasuryDirect

Cashing electronic bonds is primarily done through your TreasuryDirect account. Here’s a step-by-step guide:

1. Access Your TreasuryDirect Account: Log in to your TreasuryDirect account using your account number and password.

2. Navigate to ManageDirect: Once logged in, go to the “ManageDirect” section.

3. Redeem Securities: Under “Manage My Securities,” click on the “Redeem securities” link.

4. Follow the Prompts: The system will guide you through the redemption process, allowing you to select which bonds to cash and where to deposit the funds (typically your linked bank account).

TreasuryDirect also offers a helpful video tutorial to guide you through the electronic redemption process: Help Video. For detailed written instructions, visit: How do I…?.

Advantages of Electronic Bonds for Cashing

Electronic savings bonds offer several advantages when it comes to redemption:

• Convenience: Cash your bonds online from anywhere, anytime, without needing to visit a physical location.
• Partial Redemption: Unlike paper bonds which must be cashed in full, you can redeem any amount of an electronic bond that is $25 or more, down to the penny. You also have the flexibility to leave a minimum of $25 remaining in the bond within your account.
• Direct Deposit: Funds are directly deposited into your linked bank account, providing quick and secure access to your money.

Key Considerations Before Cashing

Before you proceed with cashing in your savings bonds, keep these important points in mind:

Checking Your Bond’s Value

To determine the current value of your savings bond, utilize the Savings Bond Calculator available on the TreasuryDirect website. This tool helps you calculate the precise worth of your bonds based on their series, issue date, and denomination. For electronic bonds, you can easily check the current value within your TreasuryDirect account under “Current Holdings.”

Tax Implications

When you cash in savings bonds, the interest earned is generally subject to federal income tax. You will receive a Form 1099-INT for tax reporting purposes.

• Bank Redemption: If you cash your bond at a bank, they are responsible for providing you with Form 1099-INT. They may provide it to you at the time of the transaction or mail it to you by the following January.
• TreasuryDirect Redemption: If you redeem paper bonds through the Treasury or electronic bonds via TreasuryDirect, you will receive Form 1099-INT from the Treasury the following January, accessible within your TreasuryDirect account for electronic bonds.

For more detailed information on tax implications, refer to Tax information for EE and I savings bonds.

Authorizing Someone Else to Cash Your Bonds

In certain situations, you may need to authorize someone else to cash your savings bonds on your behalf. This is typically done through a legal document called a Power of Attorney. For specific instructions and the necessary form, see instructions for an attorney-in-fact.

Verifying if a Paper Bond Has Already Been Cashed

If you are unsure whether a paper EE or I savings bond has already been cashed or replaced—perhaps if you received bonds after someone’s death—first consult Death of a savings bond owner. Otherwise, your bank might be able to assist in verifying the bond’s status.

If your bank cannot provide this information, and you are the owner or co-owner, you can write to the Treasury Department for assistance. Include the serial number(s) of the bond(s) in a signed letter, but do NOT send the actual bonds. Mail your inquiry to:

Treasury Retail Securities Services
P.O. Box 9150
Minneapolis, MN 55480-9150

Conclusion

Cashing in savings bonds, whether paper or electronic, is a straightforward process when you understand the steps and options available. By choosing the method that best suits your needs and circumstances—whether it’s a local bank for paper bonds or the convenience of TreasuryDirect for electronic bonds—you can efficiently access your savings. Remember to consider the timing of your redemption to maximize interest earnings and be aware of the tax implications. This guide aims to simplify the process and answer the question “where do I cash in savings bonds?” with clarity and comprehensive information.