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.
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.
Do banks have to cash non-customer savings bonds?
If you want to cash a bond at a bank where you don’t have an account, you’ll need to present photo identification like a driver’s license or a state-issued ID card. The form of identification, as well as the number and issue date, will be noted on the bond by the bank official. A bank’s maximum amount of savings bonds it can cash for a non-customer is $1,000. The bank will not redeem a savings bond with a redemption value of more than $1,000. If the total amount of lesser bonds is less than $1,000, you can cash them all.
What is the most convenient way to redeem 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.
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).
Will Walmart accept savings bonds as payment?
No, you won’t be able to cash in your savings bonds at Walmart. This includes savings bonds in series I through EE and HH, according to Walmart’s corporate customer support department. Although, at Walmart’s Money Center, there are various check-cashing possibilities. Visit a local bank branch or credit union to redeem a savings bond. Two of the key advantages of investing in savings bonds are a guaranteed return and the reduction of risk.
Read this article to learn more about cash bonds, where you may cash them, and how to cash a paper or electronic bond.
Does the post office accept savings bonds as payment?
If you want to cash in your savings bonds, you can do it in one of two ways. Neither affects the United States Postal Service, which is prohibited from cashing bonds. Whether you have old-fashioned paper bonds or the newer electronic kind, the redemption technique is different.
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.