Yes. The owner of EE and I Bonds can transfer them to another person with a TreasuryDirect account; however, you must wait five business days from the purchase date to do so.
A savings bond can be transferred to another TreasuryDirect account in whole or in part. See What is the procedure for transferring savings bonds from one TreasuryDirect account to another?
What happens if I transfer savings bonds to another TreasuryDirect customer? Will the recipient’s purchasing limit be affected?
When you transfer savings bonds to another customer, the value of the transfer is deducted from the yearly purchase limit for each savings bond type for the year in which the transfer happens.
Is it possible to move marketable securities from one TreasuryDirect account to another or to a broker/dealer account?
Yes. Marketable Securities can be transferred in $100 increments. You can send a portion or the entire value of a single investment or a group of securities to a single recipient or financial institution. See What is the procedure for transferring marketable securities from my TreasuryDirect account?
No, you must transfer marketable securities from your TreasuryDirect account to a broker/dealer account in order to sell them.
The securities can be sold by the broker/dealer on your behalf.
Is it possible to transfer marketable securities from a non-TreasuryDirect account to my TreasuryDirect account?
Yes. You can contact your broker to have marketable securities from another account transferred as an Incoming External Transfer to your TreasuryDirect account. Customer Service will handle your request and add issued securities to your Current Holdings. For maturity and interest payments, incoming transfers are issued with your primary bank information as the payment destination (if applicable). For specific instructions, see Learn More About Transfers.
Is it possible to transfer marketable securities from my old TreasuryDirect account to my new TreasuryDirect account?
Yes. Complete a Security Move Request, FS Form 5179, to transfer assets from Legacy Treasury Direct to your TreasuryDirect account. Incoming transfers are deposited into your TreasuryDirect account’s Current Holdings.
What happens if I transfer a marketable security that was initially slated for deposit in my C of I before it matures?
Any purchases you have scheduled utilizing Zero-Percent C of I as the source of funds may be impacted if you elect to transfer a marketable security prior to maturity. If funds are inadequate to cover the purchase request, the purchases may be canceled.
What if the form of registration for transferring marketable securities from an outside broker to my TreasuryDirect account is invalid?
We shall refuse any inbound security transfer request that has an invalid form of registration.
What if the marketable security I want to move in from another outside account is registered with the words “OR,” “AND,” or “With Right of Survivorship”?
Regardless of the method of registration prior to the transfer, a security transferred from an outside account into a TreasuryDirect account will be transferred in the name of the individual account owner in single owner form. The registration can be changed to any allowable registration after the transfer is accomplished.
How do you give ties to someone else?
The name of a single owner or two co-owners will be printed on a US savings bond. The savings bond can only be cashed by a listed owner. To change the owner of a savings bond, a reissue request must be made to the US Treasury together with the bond.
Can you transfer your savings bonds?
- Is it necessary to get my signature certified if I cash my bonds by mail using FS Form 1522?
- What should I do if I lose, steal, or destroy my paper savings bond?
- Is it necessary to repair a mistake, an erroneous address, or a wrong Social Security number on my paper EE bond?
- As a gift, I’d like to purchase a savings bond. What happens if I don’t have access to the owner’s Social Security number?
- I observed savings bonds were being auctioned on auction sites like eBayTM, but I assumed they were non-transferable. What is the mechanism behind this?
It is debatable. You can send us a copy of your driver’s license, passport, state ID, or military ID instead if the current redemption value of your bonds is $1,000 or less.
Fill out and sign FS Form 1048 (download or order) according to the directions on the form, then mail it to the address on the form.
- Serial number of Bond If you don’t have the bond serial number, please provide the following information:
If we can prove that a person who is entitled to cash the bonds hasn’t done so, we can replace them. Replacing or Reissuing a Lost or Destroyed Paper EE Bond is described in detail here.
Is it necessary for me to change a mistake, an erroneous address, or a wrong Social Security Number on my paper EE Bond?
- Misspelled Names EE bonds do not need to be reissued to fix minor spelling problems. If the error is substantial enough to preclude the bond owner from cashing it, the bond must be reprinted. Fill out and sign FS Form 4000 (download or order) as directed on the form, then mail it along with the bonds to the address listed on the form.
- Incorrect Address EE bonds do not need to be reissued if the address on the bonds is incorrect.
- Incorrect Social Security Number To correct a Social Security Number, EE bonds do not need to be reissued. The Social Security Number isn’t used to determine who owns something or who owes taxes. It’s utilized to track down savings bond records if the bonds go missing and the owner doesn’t keep track of the serial numbers. Keep track of all of your bonds, including serial numbers.
The first five digits of your Social Security number or Employer Identification number are masked and substituted with asterisks on any papersavings bonds issued on or after August 1, 2006. This was done to preserve your privacy and keep your information from being used to steal your identity.
When paying qualified higher education expenses, qualified taxpayers may be able to deduct all or part of the interest collected on eligible EE and I Bonds issued after 1989. At the time of issuance, bonds must be issued in the name of a taxpayer who is 24 years old or older. There are also some restrictions and income limits in place. See IRS Form 8815 for more information on the education tax credit.
If you cash a bond before it reaches the age of five years, you will lose the last three months’ interest. And you can’t cash a bond until it’s been on the market for a year.
Patriot Bonds are paper EE bonds with the words “Patriot Bond” imprinted on them.
They are no longer available for purchase.
To buy an electronic savings bond as a gift, you’ll need the recipient’s full name, Social Security number, and/or taxpayer ID number. The gift bond is kept in the account holder’s “Gift Box” until the account holder acquires the recipient’s TreasuryDirect account number and is ready to transfer the bond to his or her account.
Before you can give savings bonds as gifts, you must keep them in your TreasuryDirect account for at least five working days. Treasury is protected against loss by the five-day hold, which ensures that the ACH debit has been performed satisfactorily before the cash can be moved.
The bond will then be transferred and an e-mail will be sent to the gift recipient.
I spotted savings bonds for sale on auction sites like eBayTM, but I assumed ownership was not transferable. I’m not sure how this works.
Savings bonds are sometimes marketed as collectibles or souvenirs. Because a savings bond is a registered security and ownership is non-transferable, the sale has no effect on the savings bond’s ownership. The owner or co-owners stated on the bond, not the individual who bought the bond at auction, nonetheless have a contractual connection with the US Treasury. As a result, the person purchasing it at auction is unable to cash it; he has simply purchased a piece of paper indicating that the bond is still the property of the owner or co-owners specified on the bond. If the bond was lost and has since been replaced, it may be the property of the United States Treasury in some situations. Bottom line: Buying a savings bond at an auction is a bad idea because you don’t get any title or ownership rights to the bond.
Is it possible to gift I bonds?
NEWS: The new Series I savings bonds have an initial interest rate of 7.12 percent. I bonds can be purchased at that rate until April 2022.
- Does it make sense to cash my old I bonds that were issued at a lower rate and acquire new I bonds when the interest rate on new I bonds is high?
- How can I find out what my I bond’s current interest rate and redemption value are?
If I cash my bonds by mail, using FSForm 1522, must I have my signature certified?
It is debatable. You can send us a copy of your driver’s license, passport, state ID, or military ID instead if the current redemption value of your bonds is $1,000 or less.
When the interest rate on new Ibonds is high, does cashing my old I bonds that were issued at a lower rate andbuying the new bonds make sense?
Notnecessarily. Your I bond’s rate fluctuates every six months, and it may be higher now than when you first bought it. A new I bond had a rate of 3.54 percent in May 2021, for example. A new I bond has a rate of 1.38 percent in November 2013. In May 2021, however, the bond issued in November 2013which had a rate of 1.38 percent at the timehad a rate of 3.74 percent. It has a higher interest rate than the bond due in May 2021.
How canI find the current interest rate and current redemption value of my I bond?
Go to your TreasuryDirect account to order an electronic I bond. Use the Savings BondCalculator to calculate a paper I bond.
How is the interest rate of an I bond determined?
- A fixed rate of return that does not change over the life of the I bond.
- Variable semiannual inflation rate for all urban consumers based on changes in the Consumer Price Index (CPI-U). The rates are announced by the Bureau of the Fiscal Service every May and November. The difference between the CPI-U statistics from the preceding September and March is the semiannual inflation rate announced in May; the difference between the CPI-U figures from the preceding March and September is the inflation rate announced in November.
The interest rate on an I bond is sometimes referred to as the composite rate or the overall rate because it combines two rates.
When are earnings added to the I bond?
I bonds gain value on the first of every month, and interest is compounded semiannually based on the issuance date of eachI bond. The issuance date of an I bond is the month and year in which the bond is fully paid.
What is the difference between EE and I bonds?
The EE bonds we sell now have a set rate of interest and are guaranteed to double in value in 20 years, regardless of the rate. Today’s I bonds earn a variable rate of interest that is linked to inflation; as inflation happens, the bond’s value rises. An I bond’s value isn’t guaranteed to rise to a set level.
Are there tax benefits to using I bonds to finance education?
Yes. You may be able to totally or substantially exclude savings bond interest from federal income tax under the Education Savings Bond Program. When you pay qualified higher education expenses at an eligible institution or through a state tuition plan in the same calendar year that you redeem eligible I and EE bonds issued in January 1990 or later, this can happen. When purchasing bonds, you are not needed to state that you intend to use them for educational purposes, but you must ensure that the program’s conditions are completed; some apply when the bond is purchased (s). See IRS Publication 970, “Education Tax Benefits.”
Electronic bonds as gifts
You can buy an electronic I bond as a gift for someone and keep it in your TreasuryDirect account’s “Gift Box” until you’re ready to give it to them.
You must submit the recipient’s Social Security Number if you buy an electronic I bond as a gift. To be able to transfer the bond to the gift receiver, they must first open or already have a TreasuryDirect account. A parent must open a TreasuryDirect account and link it to a Minor Linked account if the receiver is a minor. The gift bond will be delivered to the Minor Linked account. If the receiver does not have a TreasuryDirect account, you may keep an EE or Ibond that you bought as a gift until it matures.
Paper I bonds as gifts purchased with your IRS tax refund
I bonds make excellent gifts for a variety of events. A paper I bond can be mailed to you using your tax refund so that you can personally hand it to the receiver. Download a gift card when you purchase the I bond. On the I bond, the word “gift” will not display.
If you’re buying an I bond as a gift and don’t know the recipient’s Social Security number, just use your own. Despite the fact that your number will be printed on the bond, you will not be charged any taxes, and it will not go against your yearly purchase limit. The Social Security Number is only needed to trace the savings bond in the event that it is lost, stolen, or destroyed.
How do I file a claim for lost, stolen, or destroyed paper I bonds?
Write to Treasury Retail Securities Services, PO Box 214, Minneapolis, MN 55480-0214 to file a claim. You’ll have to fill out FS Form 1048. (download or order).
Before we can look for your security record, we need the following information:
- serial number of the bond If you don’t have the serial number for the bond, submit all of the following information, which may be on the bond(s):
Where can I bonds be redeemed?
You can redeem electronic I bonds through the TreasuryDirect program if you have them. You can cash paper I bonds at some local financial institutions or by mail if you own them.
When can I cash (redeem) an I bond if I need the money?
After 12 months, you can cash in your Series I bonds at any time. You’ll get your original purchase price plus any interest earned. I bonds are supposed to be held for a longer period of time; if you redeem one inside the first five years, you will forfeit the last three months’ interest. If you redeem an I bond after 18 months, for example, you’ll get the first 15 months of interest back.
Can EE or E bonds be exchanged for I bonds?
No, but you can sell your EE or E bonds and use the money to purchase I bonds. The interest on the EE or E bonds must be declared on your federal income tax return for the year they were cashed.
What are Gulf Coast Recovery Bonds?
From March 29, 2006, through September 30, 2007, Gulf Coast Recovery Bonds were issued. This special I bond designation was made to encourage continuing public support for hurricane recovery activities in the region. A clause in the Gulf Opportunity Zone Act of 2005 encouraged Treasury to make this designation. The proceeds from the sale of savings bonds went into the Treasury’s general fund and were spent pursuant to appropriations authorized by Congress and signed into law by the President, including those for Gulf Coast rehabilitation.
I noticed savings bonds are being sold through auction sites such as eBayTM, but I thought ownership was non-transferable. How does this work?
Savings bonds are sometimes marketed as collectibles or souvenirs. Because a savings bond is a registered security and ownership is non-transferable, the sale has no effect on the savings bond’s ownership. The owner or co-owners named on the bond still have a contractual connection with the US Treasury, not the individual who acquired the bond at auction. As a result, the person who purchases it at auction is unable to cash it; instead, he is purchasing a piece of paper displaying a bond that remains the property of the owner or co-owners specified on the bond. If the bond was lost and has since been replaced, it may be the property of the United States Treasury. Bottom line: Buying a savings bond at an auction is a bad idea because you don’t get any title or ownership rights to the bond.
When someone dies, what happens to their savings bonds?
A savings bond is defined as a financial instrument that can be used to save money “a debt security issued by the United States Treasury to assist fund the government’s borrowing needs.” When you buy a savings bond, you are effectively lending money to the United States government, which is reimbursed with interest after a set length of time.
There are two types of savings bonds available right now: Series EE U.S. Savings Bonds are currently marketed at face value and are redeemable for their full face value plus interest. Series I U.S. Savings Bonds are inflation-indexed, which means they pay a set rate of interest that is adjusted for inflation over time. They’re a popular long-term investment. The bonds of the Series HH are no longer available for purchase.
Savings bonds are a stable investment that is appealing during times of economic turmoil since their value does not vary. They are, however, usually not refundable for at least five years (unless you are willing to forgo the last three months’ interest as a penalty). This implies you might not be able to easily access the money you’ve put into savings bonds. Savings bonds can be purchased in denominations as small as $25 or as large as $10,000.
If you own savings bonds or plan to buy them, there are a few estate planning considerations to consider.
Probate is the court-supervised process of verifying the validity of a will (if one exists) and ensuring that the deceased person’s money and property are passed to the correct beneficiaries, as well as any outstanding bills or taxes. Probate is a time-consuming, expensive, and public process that many people try to avoid. The way a savings bond is titled, or how it is owned, determines whether it must go through probate.
There is only one owner. Individuals frequently purchase savings bonds that are named in their own name. However, even if you have a will indicating who you want to inherit the savings bond, it will become part of your estate and will have to go through the probate procedure if you choose this option. If you die without leaving a will, your savings bond will be distributed to a beneficiary determined by your state’s intestacy legislation ( “The state’s default estate planning procedures for those who don’t undertake their own preparation are known as “intestate statutes.”
Decide on a co-owner. As co-owners, two or more people can own a savings bond. Each co-owner has the right to cash the bond without the knowledge or consent of the other owners. Savings bonds with this title pass to the surviving co-owner(s) without going through probate. The savings bonds, on the other hand, become part of the estate of the last owner when he or she dies, and must be probated unless there is further estate planning in place to avoid it.
Make a choice for a recipient. Another method is to use the TreasuryDirect website to name a beneficiary with the US Treasury Department. The savings bond will not need to go through probate if you do this because the beneficiary you’ve designated will automatically become the owner when you die. The beneficiary must also open a TreasuryDirect account, but once that is done, the recipient will just have to deal with a simple process to transfer ownership of the bond after you die. This beneficiary selection will even take precedence over any clause in your will that contradicts it. This may be acceptable to some beneficiaries, but it may not be the ideal option for individuals who have a tendency to spend money foolishly or who have a large number of creditors who may seek to enforce their claims against the bonds.
Establish a relationship of trust. You can create a trust and transfer title of the savings bond to the trust if you want to continue to profit from the savings bond without naming a beneficiary with the Treasury Department yet avoid probate. Beneficiaries named in the trust can profit from the savings bond, and the trustee can be someone you trust to administer the savings bonds. When savings bonds are kept by a trust, you can keep financially irresponsible beneficiaries from cashing and spending the bonds until the trust’s provisions allow them to be paid to them. Furthermore, certain forms of trusts might shield your savings bonds from your beneficiaries’ creditors.
Savings bonds are often forgotten in a safe deposit box or filing cabinet since they take a long time to mature. The Treasury Department has issued guidance on what to do if the owner of a savings bond passes away.
Electronic savings bonds are a type of savings bond. If the savings bonds were electronic, the person who died was most certainly a TreasuryDirect user. If this is the case, you should call the Bureau of Fiscal Service of the Treasury Department, which will place a hold on the account and provide advice for your unique circumstance.
Bonds made of paper. To buy a paper savings bond, you must first figure out who owns it. The names of the owner or owners are usually printed on a savings bond. If all of the bond’s owners have died, the bond becomes part of the estate of the person who died last. To correctly handle a savings bond, you must prove that you are the rightful owner of the bond or that you have the ability to act on behalf of the bond’s beneficiary, such as if you are the personal representative of the owner’s estate.
The Treasury Department has outlined several methods if the savings bond is part of the owner’s estate:
- If the bonds are worth less than $100,000 and the estate was not properly managed through a judicial process, the beneficiary should just mail the bond to the Bureau of Public Debt, together with a completed and notarized FS Form 5336 and verification of the owner’s death.
- If the bonds are worth more than $100,000 or the estate is being handled by a court, the personal representative of the estate can redeem the bonds by mailing evidence of his or her appointment as personal representative, a certified copy of the owner’s death certificate, and FS Form 1455, as well as the bond.
- The beneficiary must send the bond, proof of death, a notarized affidavit explaining that the bonds belong to named individuals (for small estates) or a final accounting from the estate (for any other estate) to the Bureau of Public Debt if the bond is discovered long after the owner has died and the owner’s estate has already been administered by a court. If there is more than one person who may be eligible to inherit the bond, the heirs must each sign an FS Form 5394 and agree to the bond distribution.
The savings bond does not become part of the deceased person’s estate if a survivor is named on it. The savings bond, on the other hand, belongs to the survivor, who has the option of doing nothing, redeeming the bond, or having it reissued. The bond will continue to generate interest until it matures if the survivor does nothing. A survivor could potentially cash a paper bond by traveling to a financial institution that accepts savings bonds and providing the necessary identity and paperwork (however, only the Treasury Department can cash HH Series bonds). The survivor can also have the bond reissued only in his or her name. Only electronic reissues of Series EE and I savings bonds are available, while paper reissues of Series HH bonds are still available.
What happens to Premium Bonds when the owner dies?
Premium Bonds cannot be inherited or transferred to another person’s name in the same way as funds from bank accounts and savings accounts can.
Instead, if you’re administering someone’s estate and need to deal with their Premium Bonds, you have two options. The first option is to sell them while they are still in the probate procedure. If you do this, the proceeds from the sale will become part of the estate and will be passed down to the beneficiaries after the estate administration is finished. This is the quickest way for Premium Bond beneficiaries to inherit money.
The alternative is to leave them alone for the time being. NS&I can keep Premium Bonds for up to 12 months following a person’s death. They are still eligible for monetary rewards throughout this time. The executor of the estate or a specified beneficiary can contact NS&I after 12 months to claim the rewards and cash out the Bonds. This will postpone the inheritance of wealth, but it may result in greater money in the end. As the executor, you should consult with the beneficiaries who will receive the estate’s funds to determine which option is best for their individual circumstances.
How can I save money on savings bonds without paying taxes?
Cashing your EE or I bonds before maturity and using the money to pay for education is one strategy to avoid paying taxes on the bond interest. The interest will not be taxable if you follow these guidelines:
- The bonds must be redeemed to pay for tuition and fees for you, your spouse, or a dependent, such as a kid listed on your tax return, at an undergraduate, graduate, or vocational school. The bonds can also be used to purchase a computer for yourself, a spouse, or a dependent. Room and board costs aren’t eligible, and grandparents can’t use this tax advantage to aid someone who isn’t classified as a dependent, such as a granddaughter.
- The bond profits must be used to pay for educational expenses in the year when the bonds are redeemed.
- High-earners are not eligible. For joint filers with modified adjusted gross incomes of more than $124,800 (more than $83,200 for other taxpayers), the interest exclusion begins to phase out and ceases when modified AGI reaches $154,800 ($98,200 for other filers).
The amount of interest you can omit is lowered proportionally if the profits from all EE and I bonds cashed in during the year exceed the qualified education expenditures paid that year.
Is it possible to cash in my parents’ savings bonds?
If you are now the owner of the savings bonds or if your parent listed you as the survivor beneficiary on the bonds, take them to a bank or other financial institution. In the presence of a bank official, fill out the redemption form on the back of the bonds and sign it. A driver’s license or other form of identification is required. You must also provide proof of death if you are mentioned as a survivor. This is usually done by a verified copy of the death certificate. The bank will redeem the bonds and pay you the proceeds.
Are there any bonds in my name?
Ask your family members whether they have ever opened a bond in your name to see if there are any outstanding bonds in your name. Call your parents, grandparents, aunts and uncles, and anybody else you think might have bought a bond in your name in the past. After sifting through their filing cabinets, the family member may be able to discover the bond and hand it over to you for redemption.
What is the value of a savings bond after 30 years?
A $50 bond purchased for $25 30 years ago is now worth $103.68. Using the Treasury’s calculator, here are some more examples. These figures are based on historical interest rates. Interest rates will fluctuate in the future.
What is the price of a $50 savings bond?
You make a cash payment at face value. A $50 EE bond, for example, costs $50. EE bonds are available in any denomination up to the penny for $25 or more. A $50.23 bond, for example, could be purchased.