Question: I could connect to the Auwe’s frustration with redeeming US savings bonds. If my bank refuses to redeem Series EE bonds, what options do I have? These are old paper savings bonds from the United States.
Answer: Treasury Retail Securities Services in Minneapolis, through mail. According to the U.S. Department of the Treasury’s Bureau of the Fiscal Service, the procedures for cashing paper Series EE or Series I U.S. savings bonds differ depending on the value of the bonds, as outlined on treasurydirect.gov:
>>> “There’s no need to have your signature validated if the total amount of your bonds is less than $1,000. FS Form 1522 can be downloaded, filled out, and signed. Send us the completed form, along with your unsigned bonds and a copy of a valid form of identification, such as a driver’s license, passport, or state or military identity.”
>>> “Download FS Form 1522 and have your signature certified as indicated on the form for bond amounts exceeding $1,000. Send us your unsigned bonds and the completed application.”
On the website, you may download the form. On the form, you’ll see the redemption postal address. To avoid imitation scams, simply get the form from an official government website. Click here for additional information “On the internet, under the section for individuals, look for “cash paper savings bond.”
It may take four to six weeks to collect your money, according to other readers who have used this approach.
A: Kokua Line reached out to nine banks in Hawaii and received responses from seven of them. Only two of them indicated they redeem US savings bonds, and they only do so for their clients, not the general public. The Bank of Hawaii and the Bank of the Orient are their names.
Bank of the Orient account holders can bring U.S. savings bonds to the Honolulu office for redemption, along with proper identification, according to a representative.
U.S. savings bonds are not redeemed by American Savings Bank, Central Pacific Bank, First Hawaiian Bank, HomeStreet Bank, or Territorial Savings Bank. Hawaii National Bank and Ohana Pacific Bank have yet to respond.
Q: My purse was taken, and I lost all of my credit cards, identification, and other valuables. My credit cards were cancelled, but what about my driver’s license?
A : “If you are not planning to drive during the time it takes to process a duplicate driver license, which is about 3 to 5 business days for a temporary driver license and 6 to 8 weeks for a permanent plastic license, Honolulu County’s Department of Customer Services recommends applying for an exact replacement online. Go to www1. honolulu.gov/duplicates/ to do so.
Is it possible for a bank to refuse to redeem a savings bond?
Bring your bond to your bank, but not any bank. It has to be an account that you’ve owned for at least six months. If that isn’t possible, you can use a government-issued photo ID to prove your identification. The most prevalent form of identification is a driver’s license. If you need identification like a driver’s license to prove your identity, you’ll only be able to cash $1,000 in savings bonds. After that, you’ll need to sign a payment request form in front of a bank representative, confirm your social security number, and validate your current address.
As long as the child is too young to sign his or her name, a parent or guardian of a child who is the holder of a savings bond can redeem the bond.
If the bond’s original owner has passed away but the bond’s beneficiary has been named, the beneficiary can redeem the bond. Finally, a person with legal capacity to conduct business on behalf of the bond bearer can redeem the bond in particular instances. This is usually someone acting on behalf of the estate of a deceased person.
A bank may refuse to issue payment for a bond in certain situations, or may even be legally unable to do so. In these instances, the bearer may be required to redeem the bond at a Federal Reserve Bank Savings Bond Processing Site. The Treasury Department’s TreasuryDirect Web site lists the locations of these facilities.
Are there any fees associated with cash savings bonds?
Banks are prohibited by federal law from charging consumers fees for cashing in savings bonds, though clients may be subject to fines if they cash the bond in too soon.
What is the time frame for cashing paper savings bonds?
- Whether you have a local bank account and it accepts savings bonds, inquire if it will accept yours. The answer may be contingent on the length of time you’ve had an account there. If the bank will cash your check, find out if there is a monetary restriction on redemptions and what kind of identification and other documentation you’ll need.
- Send these, along with FS Form 1522, to Treasury Retail Securities Services (download or order). The bonds are not required to be signed. You’ll need to verify your identity. The instructions are on FS Form 1522, in the “Certification” section. Our address is also included in the form.
When cashing in savings bonds, how do I avoid 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.
When you cash in your savings bonds, do you have to pay taxes?
Taxes can be paid when the bond is cashed in, when the bond matures, or when the bond is relinquished to another owner. They could also pay the taxes annually as interest accumulates. 1 The majority of bond owners choose to postpone paying taxes until the bond is redeemed.
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.
To cash a savings bond, what documentation do I need?
If you want to redeem a paper E/EE or I bond, you’ll need a few items. You’ll also need confirmation of identity, such as a driver’s license from the United States. You’ll also need an FS Form 1522 that hasn’t been signed. They’ll see you sign the document and then certify your signature if you go to your local bank or credit union.
The unsigned bonds, along with the signed FS Form 1522 and, if you’re the bond’s beneficiary, accompanying legal evidence or other papers to indicate you’re entitled to cash the bond, should be sent to the US Department of Treasury at:
The same steps apply for series H or HH paper bonds, only you’ll ship the unsigned bonds to the US Treasury at:
What is the value of a $100 savings bond?
You will be required to pay half of the bond’s face value. For example, a $100 bond will cost you $50. Once you have the bond, you may decide how long you want to keep it for—anywhere from one to thirty years. You’ll have to wait until the bond matures to earn the full return of twice your initial investment (plus interest). While you can cash in a bond earlier, your return will be determined by the bond’s maturation schedule, which will increase over time.
The Treasury guarantees that Series EE savings bonds will achieve face value in 20 years, but Series I savings bonds have no such guarantee. Keep in mind that both attain their full potential value after 30 years.