Generally, if you're listed as the registered owner of the savings bond, you should need to bring just the paper bond and one or two current forms of identification to a bank or credit union. While a paper savings bond looks like a check, do not sign it until you are told to do so during the redemption process.
The process for cashing in a Patriot bond is the same as for any other Series EE bond: Cashing in Patriot Bonds at a bank: Like paper Series EE bonds, you can cash in Patriot Bonds at a bank or credit union. They will verify your ID and process the redemption.
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.)
In general, you must report the interest in income in the taxable year in which you redeemed the bonds to the extent you did not include the interest in income in a prior taxable year.
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.
Key takeaways
Bonds may be cashed in by mail or via direct deposit. Some banks and credit unions may be able to cash savings bonds, but that service isn't currently available at Capital One.
If you still have a paper EE bond, check the issue date. If that date is more than 30 years ago, it is no longer increasing in value and you may want to cash it.
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.
There are two primary reasons a bond might be worth less than its listed face value. A savings bond, for example, is sold at a discount to its face value and steadily appreciates in price as the bond approaches its maturity date. Upon maturity, the bond is redeemed for the full face value.
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.
Banks and credit unions can redeem savings bonds over the counter.
If only one person is named on the bond and that person has died, the bond belongs to that person's estate. If two people are named on the bond and both have died, the bond belongs to the estate of the one who died last.
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.
With that in mind, you have one option for avoiding taxes on savings bonds: the education exclusion. You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs.
EE bonds you buy now have a fixed interest rate that you know when you buy the bond. That rate remains the same for at least the first 20 years. It may change after that for the last 10 of its 30 years. We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.
5 years: While you technically can cash it in at that 12-month marker, it's better to avoid doing so – and to keep that bond intact for at least 4 more years. Why? Because you'll have to forfeit 3 months of interest if you cash it in within the first 5 years.
In addition to the bonds, you'll need to provide proof of identity, like a United States driver's license, and partner with a notary to notarize and certify your signature on an unsigned FS Form 1522 to your local bank or credit union.
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.
About TreasuryDirect
TreasuryDirect.gov is the one and only place to electronically buy and redeem U.S. Savings Bonds. We also offer electronic sales and auctions of other U.S.-backed investments to the general public, financial professionals, and state and local governments.
As a result, when inheritors redeem inherited bonds on which the tax has been deferred, they will owe tax on all the interest that has accumulated.
FS Form 1522 (Revised November 2021) OMB No. 1530-0028. Special Form of Request for Payment of. United States Savings and Retirement Securities.
Remember that savings bonds can't be sold, traded or given away. The person whose name is on the bond is the only person who can cash it in (with some exception, which we'll get to shortly).