How To Convert My Paper Bonds?

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  • If you don’t already have one, sign up for a TreasuryDirect account. To get started, simply fill out our simple online application.
  • If you want to create a Conversion Linked Account, verify the details on the ManageDirect >> Establish a Conversion Account page and then click “Create Account.”
  • For detailed instructions, go to “Manage Direct” and then “How to Convert My Paper Bonds” under the “Manage My Conversions” menu.

Are you looking for additional information on SmartExchange? Answers to your conversion-related inquiries can be found in our FAQs.

NOTE: The number in the box in TreasuryDirect is the number in the box in the box in the box in the box in the “The “Amount” column shows how much you paid for a bond. This isn’t the bond’s face value if you converted a Series EE bond from paper. If you bought a $100 Series EE savings bond in paper form, for example, you would have paid $50. The “Amount” column in TreasuryDirect will show “$50” if you swap it for an electronic bond in a TreasuryDirect account…. The figure in the “The “Current Value” column displays the bond’s current value, which is comprised of the purchase price plus accumulated interest.

Is it possible to convert paper I bonds to electronics?

Financial institutions discontinued issuing paper versions of Series EE and Series I savings bonds on January 1, 2012. Many of us still own bonds in paper form, even though any bonds purchased after this date are stored electronically. Since the United States Treasury shut down the Savings Bond Wizard in May 2018, you have two options for getting information about your paper savings bonds:

  • Visit www.treasurydirect.gov/ to use the Savings Bond Calculator. indiv/tools/tools savingsbondcalc.htm

Converting your US savings bonds to an electronic version allows you to examine their current rate and value, as well as the interest received and the tax implications of cashing them now or at maturity, which is crucial as you plan for retirement.

A tool called SmartEx­change can help you convert your paper bonds to electronic bonds. After you’ve gathered your paper bonds and sorted them by registration, go to www.treasurydirect.gov/ R S / U N – A c c o u n t C r e ate.do to create an account. Mail your paper bonds to the US Treasury after you’ve set up your online account. You can convert paper bonds from Series E, EE, or I. Series H and HH bonds cannot be converted since they must be redeemed through the US Treasury and cannot be redeemed at a local financial institution.

Converting paper bonds to an electronic format is helpful for various reasons:

  • You will be able to log in to your account at any time, seven days a week. The current values will be displayed clearly.
  • There is no need to store bonds or be concerned about them being lost, stolen, or damaged.
  • Bond registration can be changed, although some bonds will require a signed owner release.
  • Bond proceeds can be automatically paid into your bank account or deposited into a Zero-Percent Certificate of Indemnity for future Treasury­Direct online purchases. Keep in mind that when the bonds reach maturity, they will be automatically redeemed. The owner will not be able to choose when to redeem the bonds and pay tax on the accumulated interest because interest will be reported in the year of maturity. This can be a benefit if you want to reinvest the proceeds, or it can be a disadvantage if the tax consequences are unforeseen.

While transferring bonds to an electronic version takes some time, the effort is well worth it. Savings bonds should be stored and managed safely at all stages of life, but especially as you prepare for and enter retirement.

What is the process for converting paper bonds to TreasuryDirect?

When you do a SmartExchange, you exchange your paper savings bonds for electronic savings bonds kept in TreasuryDirect, an online system that allows you to access your Treasury assets at any time.

  • To create your Conversion Linked Account, click the icon. The Account Info page for that account will appear after you do so.
  • Select the ManageDirect tab from the drop-down menu. A menu titled “Manage my Conversions” can be found on the ManageDirect page.
  • Click the “How to Convert My Paper Bonds” link from the “Manage My Conversions” menu. This page includes step-by-step directions to help you complete the task. We recommend printing this page so you can refer to it when you’re getting started.

Gather your Series E, EE, and I savings bonds and sort them according to their titles and connectors (“OR,” “POD,” or “beneficiary”). Grouping your bonds by registration will make the process of entering the bonds you want to convert much easier.

If you need to access your Conversion Linked Account at a later time, go to your principal Account Summary page and look for “My Converted Bonds” in the account listing under “Linked Accounts Information.”

You will no longer need to keep track of paper securities once you have completed the SmartExchange.

See “Convert Your Paper Savings Bonds Using SmartExchange” for additional information and other benefits.

What is the procedure for returning 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.

Is it possible to cash a paper bond online?

Paper savings bonds, unlike bonds purchased online, cannot be redeemed using the Treasury Direct platform. You must instead take your paper certificates to a bank or other financial institution that processes Treasury Department redemptions.

To convert paper bonds to electronic bonds, you can use the Treasury Direct SmartExchange facility. The bonds can be redeemed online once they’ve been converted to electronic form. You must wait at least one year after purchasing the bonds before redeeming them as part of bond ownership. If you redeem them in fewer than five years, you will lose three months’ interest.

Paper bonds

Your bank or credit union should be able to cash in your paper savings bonds. If you’re going to a financial institution where you’re not a member or customer, check to see if they’ll cash your bond before you go.

Confirm what documents you’ll need to bring with you by contacting the bank. Here’s what you should bring with you in general.

It’s important to remember that bonds can’t be cashed by just anyone. Savings bonds can only be cashed by the bond owner or co-owner, which includes “survivors,” or those identified on the bond who received ownership after the original owner died. You are not the registered owner (a savings bond is nontransferable) and cannot cash in the bond if you purchased it through an auction site like eBay.

If the child is too young to sign the payment request and the child lives with the parent — or the parent has legal custody of the child — the parent may cash in the child’s savings bond.

Anyone else who wants to cash in a bond must show proof of legal authority to do so.

You’ll sign each bond and receive the cash value at the bank. The bank will either hand you a 1099 tax form or mail it to you before the end of the tax year after you’ve cashed in your bond.

Paper bonds can also be redeemed through the mail. To cash in by mail, obtain an FS Form 1522 from the US Department of Treasury, have your signature certified, then mail the form to the address shown on the form.

Electronic bonds

By connecting into your TreasuryDirect account and setting up a direct payment to your bank or savings account, you can cash in your electronic bonds. Within two business days, the cash amount may be credited to your bank account.

Is it possible to cash savings bonds that are not in your name?

When it comes time to cash in your savings bonds, as long as you have the necessary documentation, the process will be relatively simple. It’s important to keep in mind that savings bonds cannot be sold, exchanged, or given away. The only person who can cash in the bond is the person whose name is on it (with a few exceptions, which we’ll discuss shortly).

First and first, you’ll need the bond (unless it’s an electronic bond, in which case there’s no step at all). The monies are deposited into your bank account once you cash it in via the Treasury Web site). However, make certain that the bond may be cashed: It’s been at least a year since it was published (some bonds only require a six-month retention period).

Is it possible to cash bonds at any bank?

The best place to start redeeming your savings bond is the same place where you have a checking account. Customers who have had a checking or savings account with Bank of America for at least six months can quickly cash in their savings bonds. According to the Treasury Department, over 95% of these bonds are redeemed at banks and credit unions.

If you have trouble cashing it in at your bank, you can redeem it directly through the Treasury Department by downloading form 1522, having your signature certified, and submitting your unsigned bonds to:

How do you go about purchasing paper savings bonds?

Paper savings bonds are no longer marketed by financial institutions as of January 1, 2012. Treasury’s goal of increasing the number of electronic transactions with citizens and businesses is being furthered by this measure.

SeriesEE savings bonds are low-risk savings instruments that yield interest until 30 years have passed or you cash them in, whichever comes first. EE bonds can only be purchased in electronic form through TreasuryDirect. Paper EE bonds are no longer available. You can buy, manage, and redeem EE bonds straight from your web browser if you have a TreasuryDirect account.

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.

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