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.
- If you don’t already have one, sign up for a TreasuryDirect account. To get started, simply fill out our simple online application.
- 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.
Should I switch from paper to electronic savings bonds?
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.
Is it possible to cash paper bonds electronically?
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:
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.
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.
Can you deposit a savings bond by mobile phone?
Because of the following reasons, electronic securities provide you with more flexibility and convenience than paper securities:
- You can cash your electronic bonds in whole or in part at any time 24 hours a day, seven days a week and have the funds deposited into a savings or checking account of your choice. You don’t need to go to a bank, and once the minimal requirements are satisfied, there are no limits on the number of bonds or their value that can be cashed at any given moment.
- At any time, you can see your online holdings and their current valuations. You don’t have to be concerned about paper securities being misplaced or destroyed.
- At any moment, you can amend the bond registration or transfer the securities to a different account. (There are some ownership restrictions, and transfers may trigger a taxable event.)
- When electronic bonds reach their full maturity and no longer generate interest, they will be immediately paid out and the proceeds put into your Primary Account’s Zero-Percent C of I. You can utilize the proceeds in full or in part to buy additional securities or cash the C of I into 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).
What is the procedure for transferring savings bonds?
You can fill out the form online. Make a physical copy of the document. Don’t sign the contract just yet. You will be required to sign in front of a bank officer. At the time of signing, you will be requested to show identification. The person mentioned on the paperwork has the option of transferring the bond and having his or her name deleted. Only one person is required to sign the bond if there are two co-owners listed on it. The name of the surviving person will stay on the bond. To have their names deleted, both parties must sign together with the person whose name is being added. The form must then be mailed to the US Department of Treasury, along with the savings bond, to complete the bond transfer process.