Savings Bonds. How soon can you cash them in?
by admin ~ December 31st, 2006 . Filed under: Personal Finance .
pandjnewton asked:
I am in a tight spot and have savings bonds that are from 6 months to 11 years old. Can I cash any of them in now? What are pros and cons to doing this?
I am in a tight spot and have savings bonds that are from 6 months to 11 years old. Can I cash any of them in now? What are pros and cons to doing this?
Thanks
Max Sola
January 3rd, 2007 at 3:46 pm
Yes you can cash them in at any time.
The payout depends on whether or not they are 100% matured.
If they are more then 100% mature you will get a little more then the face value of the bond, if they are less then mature you may only get what you paid for the bond.
Cash the older bonds out first, they will be the most valuable.
You can go online and find an approx value, all you need is the serial number or the number that indicates the type of bond. Do a search on the web for “saving bond” calculator or something like that. There will be step by step instructions on determining the approx value, that way you’ll know what to expect form your bank.
Remember you will be given some tax paperwork, or the bank may mail you the tax paperwork. You have to claim them bonds you cash on your tax return!!!
January 5th, 2007 at 1:52 am
usually you can cash them in after 5-7 years when they mature without a heavy penalty( higher taxes) those 8-11 are fine
January 6th, 2007 at 7:55 pm
You have to wait at least 12 months ( 12 month anniversary) if the bonds are EE series type. Generally if you go to your local financial institution (where you bank) there should be no fees involved, but you will be responsible for any taxes on the interest earned from an IRS perspective. Also call your local financial institution to find the local branch that will provide this service, as some may defer to a certain branch to do it although most should have the software that facilitates the cash-in process. See the following sites for more information: and Good luck!
January 8th, 2007 at 2:38 am
It actually takes 14 years for an EE savings bond to mature. But you can cash them in normally after 6 months. You will get at least what they were purchased for plus interest
January 8th, 2007 at 4:53 am
treasurydirect.gov (savings bonds site) will have the answer. I think you have to wait 1 year and any bonds redeemed before 5 years will be subject to a 3 months penalty on interest. Look at how much you are making before you cash in, though. There are some bonds with really high interest rates that you wouldn’t want to get rid of- but I don’t think these occurred in the last 11 years.\
Good luck