questions on series EE savings bonds [only answer if you know what you are talking about please]?
by admin ~ April 19th, 2007 . Filed under: Personal Finance .
* asked:
i live in new york and i’m 17 years old. i want to cash in some, not all of my series ee savings bonds. i do not have a bank account or belong to a bank, but my parents do. i was wondering if i could still cash in these bonds at a bank of my choosing without parental consent. i’m not sure if my parents names are on the bond but if they are is there some way for me to still cash the bond in without them knowing? my mom said that i can’t cash them in until i’m 18 but i have a feeling she just doesnt want me to cash them in and that i really can cash them in my myself. thanks for your answer.
Pennie Burrow
i live in new york and i’m 17 years old. i want to cash in some, not all of my series ee savings bonds. i do not have a bank account or belong to a bank, but my parents do. i was wondering if i could still cash in these bonds at a bank of my choosing without parental consent. i’m not sure if my parents names are on the bond but if they are is there some way for me to still cash the bond in without them knowing? my mom said that i can’t cash them in until i’m 18 but i have a feeling she just doesnt want me to cash them in and that i really can cash them in my myself. thanks for your answer.
Pennie Burrow
April 20th, 2007 at 12:53 am
You should be able to cash them in without your parents. Let me just caution you on one thing. Whoever bought the bonds for you will receive a statement reporting the interest earned (and therefore to be taxed) when you cash them in. It will come around January, I would say. So, if your parents bought them, that’s how they will find out. I’m guessing they’re gonna be pretty ticked, so ask yourself if it’s really worth it.
The other thing is that these bonds don’t mature for 18 years from the date of purchase, so you’re not going to get the amount the bond says. It will be significantly less if purchased in the last 8 years, I would say. You will get at LEAST half the face value of each.
Hope that helps you!
April 20th, 2007 at 1:00 am
how long have you had them? The interest on bonds only gets added to the bond twice per year-it used to be May & Nov. If you cash them in before Nov, you will lose a lot of interest income. Since you’re under 18, you had better check to see if a parent’s name is also listed on the bonds besides yours. If there is another name, you won’t be able to cash them in yourself. What’s the hurry?
April 21st, 2007 at 12:19 pm
yeah, if it says….you OR your parents, only you or your parents will have to sign. if it is made out to you AND your parents, you will need their signatures on the back as well as yours and their valid i.d. to prove the signature. you will also need some form of i.d. for yourself. you can cash them at any financial institution without an account, that’s a law.
April 22nd, 2007 at 5:46 pm
As far as the legalities go, it appears that you can cash the EE bonds (provided you are listed as an owner or co-owner) as indicated by a quote from the following link:
“Payment to Minor
If the owner or co-owner of a savings bond is a minor, and the form of registration does not indicate a guardian or other representative has been appointed by the court or similar authority for the minor’s estate, you can pay the minor, provided the minor is of sufficient competency to sign the request for payment and to understand the nature of the transaction. The minor’s SSN must be furnished for federal income tax reporting purposes.”
From a practical point of view, I don’t exactly see how you plan on cashing these bonds. You must not have physical possession of the bonds, since you don’t know whose names are on the bonds. There’s no chance any bank will cash a paper savings bond unless you present the bond at the bank when you redeem it. Your parents can effectively prevent you from cashing the bonds by keeping them locked up in a safety deposit box until you’re 18.
April 23rd, 2007 at 11:46 am
Paper Series EE bonds are purchased at half the face value (you pay $25 for a $50 bond). The full value is only paid at maturity. If cashed before 5 years, you will also forfiet 3 months interest. Bonds purchased before 2005 earn the current market rate, while bonds purchased after 2005 earn a fixed rate of interest.
Unlike other securities, minors may own savings bonds. If your name is on the bond (”A” OR “B”, not “A” AND “B”), you may cash it at any bank.
April 23rd, 2007 at 12:23 pm
I know what I am talking about - LISTEN TO YOUR MOTHER!!!
Trust me on this!