Savings bonds can generally be redeemed with the bank where you have a checking account. For example, at Bank of America, customers who have had a checking or savings account open for at least six months can easily cash in their savings bonds.
Banks have a lot of variation in their policies, so check to see what your bank requirements are before visiting. For example, Capital One and USAA don't cash savings bonds at all, and U.S. Bank requires you to have a checking, savings, or money market account that's been open for five years.
Financial institutions now have the option to not cash savings bonds for both non-customers or new customers. Our Secret Service partners recommend that a customer be established for 12 months before cashing bonds at a financial institution.
Banks and credit unions can redeem savings bonds over the counter.
Savings bonds are a government-backed, reliable investment that earn interest, reaching full maturity after 30 years. The different types of savings bonds are E/EE, I, and H/HH. Only E/EE and I bonds are still sold, but all types are able to be redeemed through the Federal Reserve.
Can I redeem a Federal Savings Bond at a Bank of America financial center? To redeem a bond you must be the owner or co-owner of the bond and you must have an active checking or savings account with Bank of America.
You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks.
The interest you earn on EE savings bonds is subject to federal income, gift, estate, and excise taxes but is exempt from state and local income taxes. The taxation depends on who owns the bond, even if the ownership is split amongst individuals.
Do Savings Bonds Double Every 7 Years? There is no set rule about savings bonds doubling after seven years. Series EE bonds are guaranteed to double in value after 20 years. Series I bonds don't offer guarantees and may not double in value at any guaranteed point.
There is no penalty for holding onto a Series EE savings bond past the 30-year maturity period. Once a Series EE bond reaches its final maturity, it stops earning interest, but there are no penalties associated with holding onto it beyond that point.
Provide a certified copy of the decedent's death certificate, if the bonds are registered "A POD B" and "A" is deceased. Death certificates must be certified or sworn to by the state or local registrar, with a legible seal or stamp, as a true and correct copy taken from the official records.
If you cash a paper savings bond at a local bank, that bank is responsible for giving you a 1099. If you cash a paper savings bond by mailing it to Treasury Retail Securities Services, we mail you a 1099 by January 31 of the following year. (You can call us for a duplicate statement, if needed, beginning February 15.)
Since January 1, 2012, paper savings bonds are no longer available at banks or other financial institutions. Paper Series I bonds can still be bought with IRS tax refunds, but Series EE bonds are available only in electronic form. There are two types of savings bonds currently available.
You can get your cash for an EE or I savings bond any time after you have owned it for 1 year. However, the longer you hold the bond, the more it earns for you (for up to 30 years for an EE or I bond). Also, if you cash in the bond in less than 5 years, you lose the last 3 months of interest.
A Social Security Number must be provided. If this is a gift bond purchase, use the owner's name and SSN, if available. If the owner's SSN is not available, use the purchaser's SSN. Use of the purchaser's SSN does not confer rights to the bond or require interest reporting.
You can take the tax exclusion if you meet all of these conditions: You were 24 years old or older before the bonds were issued. Your modified adjusted gross income is less than the cut-off amount that the IRS sets for the year in which you want to take the exclusion. The cut-off amount may change each year.
You can redeem a savings bond online at the Treasury Department's TreasuryDirect website, by mail or at your local bank or credit union, if they offer the service. Your savings bond must be at least a year old, and you'll need government-issued identification to prove that the bond is yours.
Savings bonds earn interest until they reach "maturity," which is generally 20-30 years, depending on the type purchased. If a bond is held past its maturity, the federal government remains responsible for the debt.
The redemption proceeds of United States Retirement Plan Bonds or Individual Retirement Bonds you have submitted for redemption are subject to Federal income tax withholding unless you elect not to have withholding apply.
If the individual who owned the savings bonds had them in their name only and listed no beneficiary or co-owner on the bond, then the bond becomes a part of the bond owner's estate when they die. This means the bonds will be distributed according to the owner's will.
Your FCU is an authorized paying agent of U.S. savings bonds. As an authorized paying agent, your FCU is required to redeem savings bonds for nonmembers when requested to do so. 31 C.F.R. §321.10.