No. The US Treasury has not permitted USAA to redeem savings bonds in person or by mail. Visit TreasuryDirect.gov to learn more about redeeming a paper US savings bond. Follow the Cashing Paper Savings Bonds instructions.
How can I make a savings bond direct deposit?
Create a Payroll Savings Plan in your TreasuryDirect account. You’ll choose the type and denomination of savings bonds you want to buy here. Request that your employer transfer the amount you specify to TreasuryDirect every time you receive a paycheck. It’s the same as depositing your pay into a bank account.
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 deposit a savings bond at an ATM?
Can I use an ATM or a night drop to deposit my savings bonds? Any savings bond transaction, whether depositing or cashing, must be completed in person. The teller processing the transaction must witness the endorsement of the bond, and acceptable identification must be presented.
How do I get money out of savings bonds that aren’t in my name?
If you are not identified as the owner or co-owner on the bond, you must produce legal evidence or other documentation to establish you are entitled to cash the bond, regardless of where you cash it. (Legal evidence is not returned.)
It is important to note that savings bonds cannot be transferred. You can’t cash a bond that belongs to someone else or that you bought on an internet auction site. (See Death of a Savings Bond Owner if you inherit a bond through the death of the bond owner.)
What is the value of a $50 savings bond?
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.
What is the value of a $100 US 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 foranywhere 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.
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.
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.