- What if I believe I’m missing a bond that’s more than 30 years old and I’m not sure if it’s ever been cashed?
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.
After 30 years, how much is a $50 EE savings bond worth?
Savings bonds are regarded as one of the most secure investments available. The underlying principle is that the value of a savings bond grows over time, but it’s easy to lose track of how much it’s worth over time.
The TreasuryDirect savings bond calculator, fortunately, makes determining the value of a purchased savings bond a breeze. You’ll need the bond series, face value, serial number, and issuance date to figure out how much your savings bond is worth.
If you bought a $50 Series EE bond in May 2000, for example, you would have paid $25. At maturity, the government committed to repay the face amount plus interest, bringing the total value to $53.08 by May 2020. A $50 bond purchased for $25 30 years ago is now worth $103.68.
You’ve Stopped Earning Interest
If a savings bond has stopped collecting interest, it’s a no-brainer to cash it in. Cashing in your savings bond early may be an option to explore depending on your current financial circumstances.
Before cashing in your savings bond, it’s always a good idea to do some research. Bonds can be paid in for their current value as early as the one-year mark. If you cash out before the five-year period has passed, you’ll lose three months’ worth of interest.
Cashing Out vs Creating Debt
If you’re in desperate need of money right now, Redeeming a savings bond is better than taking on debt, according to Yusuf Abugideiri, partner and senior financial planner at Yeske Buie, a financial consulting firm with offices in San Francisco and Washington, D.C.
“While you will be charged a price for early redemption of your savings bond, it is a one-time payment,” explains Abugideiri, compared to the recurring cost of interest on a credit card or personal loan.
Calculating Bond Value
The current value of a paper savings bond can be calculated using the Treasury’s online calculator. It should tell you how much the bond is worth today, how much you paid for it when you first bought it, how much interest you’ve earned so far, and how much money you’d get if you sold it right now. To check the value of your electronic bonds, go to TreasuryDirect.gov.
To cash a savings bond, what identification 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:
When you cash in your savings bonds, do you have to pay taxes?
State and local taxes are not levied on savings bonds. You don’t get your interest until you redeem your bonds, so you can defer paying taxes until then, however you can choose to pay taxes on the interest you’ve earned every year. Bond interest is taxed at your marginal tax rate by the government. You must pay a 3.8 percent Medicare tax based on your investment income or the amount of adjusted gross income that exceeds the mentioned levels if you earn more than $200,000 as an individual or $250,000 as a couple. For the purposes of calculating your Medicare tax, savings bond interest is included in your investment income. You cannot redeem savings bonds during the first year of ownership, and if you do so within the first five years, you will be charged three months’ interest.
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).
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.
What is the value of a $100 savings bond dated 1999?
A $100 series I bond issued in July 1999, for example, was worth $201.52 at the time of publishing, 12 years later.