Where Do You Turn In Your Savings Bonds?

Savings bonds are a secure, government-backed investment that many individuals hold as a long-term savings vehicle. Understanding the process of redeeming these bonds is important when it is time to access the accumulated value. This guide will walk through the steps involved in cashing in savings bonds, outlining the conditions for redemption and the various methods available.

When Your Savings Bond Can Be Redeemed

United States savings bonds, such as Series EE and Series I bonds, have specific holding periods. Both Series EE and Series I bonds can be redeemed after one year from their issue date. Redeeming a bond before five years of ownership results in a forfeiture of the last three months of interest earnings. For example, if a bond is redeemed at four years and six months, the interest from months 46, 47, and 48 would be subtracted.

Bonds accrue interest until their final maturity, which is 30 years from the issue date for both Series EE and Series I bonds. After final maturity, bonds stop earning interest and should be redeemed. Eligibility for redemption rests with the registered owner, a co-owner, or a beneficiary upon the original owner’s death. Legal representatives, such as an executor or guardian, may also be authorized to redeem bonds in cases involving estates or minors.

Gathering Your Redemption Documents

Before initiating the redemption process, gather all necessary documentation. For physical paper savings bonds, the original bond certificate is required and must be legible and in good condition. A valid government-issued photo identification, such as a state driver’s license, military ID, or passport, is necessary to verify identity. The name on the identification should match the name on the bond.

In certain situations, such as when a bond is redeemed by someone other than the sole owner, specific forms may be required. For instance, FS Form 1522, “Claim for Payment of United States Savings Bonds,” might be needed for legal representatives or when bonds are part of an estate. This form establishes the legal right to redeem the bond and requires detailed information. If a paper bond has been lost, stolen, or destroyed, it cannot be redeemed directly; a separate process to replace the bond must be completed first.

Cashing Bonds at a Bank

Redeeming savings bonds in person at a financial institution is a common method. It is advisable to contact your local branch beforehand to confirm their specific policies and whether they have staff authorized to process redemptions. This preliminary call can save time and ensure a productive visit.

Once at the bank, present your physical savings bond(s) and valid government-issued photo identification to a teller. The teller will verify your identity and the bond’s details. You will sign the back of each bond in the teller’s presence, who will act as a certifying officer. After certification, the bank will process the redemption request.

Funds are typically disbursed through a direct deposit into your bank account or by check. Direct deposits are often processed within a few business days.

Redeeming Bonds Online

Redeeming savings bonds through TreasuryDirect offers a convenient online option. To utilize this method, you must first establish a TreasuryDirect account, which serves as a secure online portal for managing electronic securities issued by the U.S. Treasury. If you possess paper savings bonds, you can convert them into electronic form within your TreasuryDirect account through a process called “SmartExchange.” This allows you to manage and redeem your paper bonds alongside any electronic bonds you may already hold.

Once your bonds are held electronically within your TreasuryDirect account, initiating a redemption request is straightforward. Navigate to the “Manage My Securities” section, select the bonds you wish to redeem, and specify the amount. The system will prompt you to designate the bank account linked to your TreasuryDirect profile for direct deposit. After submitting the request, funds are typically deposited into your designated bank account within one to two business days.