When you make a SmartExchange, you exchange your paper savings bonds for electronic savings bonds held in TreasuryDirect, an online system that allows you to access your Treasury securities 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.
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:
Is it possible to convert EE bonds?
- What are the benefits of trading my paper bonds in TreasuryDirect for electronic securities?
- I have bonds that I am entitled to, but they do not bear my name.
- Is it possible for me to exchange these?
- Will my bond be automatically redeemed and the interest earned reported if it matures after I trade it?
- What happens if I convert a paper bond that is registered solely in my name, as a co-owner, or as a co-owner with a beneficiary?
- Is it possible for me to show or cash my converted bonds to another TreasuryDirect account holder?
- What happens if I exchange a paper bond in the name of someone else, including a minor?
- Will the issue date of my electronic securities match the issue date of the paper bonds I submit?
- Will the interest rate on my electronic securities be the same as on my paper bonds?
- Will the maturity period of my electronic securities be the same as that of my paper bonds?
- Is the minimum holding period for electronic securities the same as it is for paper bonds?
What is the SmartExchange conversion feature within TreasuryDirect?
Holders of paper Series E, EE, or I savings bonds can trade them in for electronic securities of the same series and issue dates in a special Conversion Linked Account within their TreasuryDirect online account using the SmartExchange function.
TreasuryDirect accounts allow owners to buy, sell, and redeem Treasury securities electronically, 24 hours a day, seven days a week, using a secure Internet connection with the Treasury Department.
TreasuryDirect sells Series EE and I savings bonds, as well as Treasury bills, notes, bonds, and inflation-protected securities.
Who can exchange their paper savings bonds for electronic securities?
Any owner of a TreasuryDirect account, whether they are the sole owner, a co-owner, or an owner with a beneficiary. Owners of accounts can also trade paper bonds received as gifts for others, as well as bonds acquired through inheritance or other changes in ownership.
Account Managers for certain entities, such as trusts, estates, and businesses, can open TreasuryDirect accounts and convert bonds. See Entity Accounts are a type of account that is used to track the assets of a company. The registration of all securities in an entity account is the same as the entity account name. Documentary evidence may be required to support the transaction if the submitted bonds are not registered in the entity’s name.
What are the advantages to trading my paper bonds for electronic securities in TreasuryDirect?
Owners of electronic securities have more freedom and convenience than those who own paper securities. Consider the following scenario:
- Electronic bonds can be redeemed in full or in part at any time – 24 hours a day, 7 days a week and the funds put into the owner’s savings or checking account. On the next working day, the cash should be available. There is no need to visit a financial institution, and there are no limits on how many bonds or how much money can be redeemed at any given time if the basic conditions are completed.
- At any time, you can see your online holdings and their current valuations.
- There is no paper that can be lost or damaged by accident.
- Owners of accounts can modify the registration of their bonds at any moment or transfer the securities to another account (some ownership restrictions apply; transfers may result in a taxable event).
What bonds can I exchange?
You can convert Series E, EE, and I paper bonds that you possess alone, with a co-owner, or with a beneficiary. You can also convert paper bonds that you’ve received as a gift for someone else or that you’ve inherited or acquired through another means of ownership change.
Can I trade in matured bonds?
Yes, if you submit a matured bond, TreasuryDirect will automatically redeem the bond and deposit the funds in your Primary Account as a Zero-Percent Certificate of Indebtedness. You can utilize all or portion of the proceeds to buy additional securities or redeem the C of I for cash in your bank account. For the tax year in which the bond is redeemed or matures, the interest earned on it must be reported to the IRS.
Can I trade in bonds I’ve bought as gifts?
Yes, you can exchange bonds that you received as a gift. Any bond you’ve purchased in someone else’s name is considered a gift. The bonds are deposited in your Conversion Linked Account Gift Box once they have been converted. In an entity account, gift bonds are not available.
What happens to gift bonds I exchange that are matured?
Gift bonds that have reached their final maturity date are automatically redeemed by TreasuryDirect. Each bond redemption will be listed in your Conversion Linked Account Gift Box “matured gift profits” under the owner’s name. Similarly, if a converted gift security expires before you send it to the recipient, TreasuryDirect automatically redeems it and records a notation in the recipient’s account “proceeds from a matured gift.” From the Conversion Linked Account Gift Box, you can deliver the money to the owner. You’ll need the owner’s TreasuryDirect account number to deliver the funds.
Before you can give savings bonds as gifts, you must keep them in your TreasuryDirect account for at least five working days. Treasury is protected against loss by the five-day hold, which ensures that the ACH debit has been performed satisfactorily before the cash can be moved.
When you deliver gift money, the interest earned is reportable for that year under the recipient’s Social Security number. In entity accounts, gift bonds are not available.
I have bonds that I’m entitled to but my name isn’t on them.Can I exchange these?
Yes, you can trade in the bonds; however, you may need to provide proof of your transaction. After we get the bonds, we will contact you and give you the necessary information to finalize the transaction. In some cases, more processing time may be necessary.
When can I begin converting my bonds?
As soon as you create your Conversion Linked Account, you can start converting your savings bonds. To create the Conversion Linked Account, follow these steps:
- Navigate to ManageDirect and select “Establish a Conversion Linked Account” from the “Manage My Linked Accounts” menu. When you click on that link, you’ll be sent to a website with some information as well as a button.
- To convert your paper bonds, go to the “How to Convert My Paper Bonds” link. This page offers detailed instructions that will walk you through the entire procedure. We recommend printing this page so you can refer to it when you’re getting started.
When I trade in my bonds, will the interest earned be reported to the IRS?
No, the interest received on your bonds will not be reported to the IRS at the time of conversion if they have not reached maturity.
If my bond matures after I exchange it, will it be automatically redeemed and the interest earned reported?
Yes, unless you have arranged a redemption, TreasuryDirect automatically redeems your bond at maturity and acquires a Zero-Percent Certificate of Indebtedness with the proceeds once it is in electronic form. For that tax year, the interest collected on the security is reported to the IRS.
Should I sign the request for payment on the back of the bonds?
Please do not autograph your savings bonds on the back. We can convert the bonds because of your signature on the conversion manifest.
Is My Converted Bonds and Conversion Linked Account the same thing?
Yes. TreasuryDirect has assigned your Conversion Linked Account the name My Converted Bonds. You can change the name of your Conversion Linked Account by going to the Account Info tab, clicking “Edit,” and then entering a new name in the Personalized Account Name field.
What happens when I convert a paper bond registered in my name alone, as co-owner, or as owner with a beneficiary?
When the exchange is accepted in individual accounts, a security registered in the same way as a paper bond is released to Current Holdings in your Conversion Linked Account. All securities in entity accounts have the same registration as the entity account name.
What transactions can I conduct with the securities I trade in?
With two exclusions, you can engage in any electronic securities transaction. For a while,
A transaction to remove the name of a security registered in the names of two people as co-owners.
Because the consent of the other co-owner is required, it must be done offline.
by means of us Similarly, deleting the name of a Series E security’s intended recipient necessitates
As a result, we must handle that individual’s consent offline.
Can I let another TreasuryDirect account holder see or cash my converted bonds?
You can provide View and Transact permissions in TreasuryDirect. If you have the security registered in your name,
You can grant and remove View permissions to another TreasuryDirect account owner based on their name alone.
A security that is registered to you as the owner and has a beneficiary allows you to give and withdraw permissions at any time.
Only the chosen beneficiary has access to the information. If, on the other hand, it’s a Series E security with a
You can only grant View privileges to the selected beneficiary, and once granted, you can’t take them away.
The rights cannot be revoked. Similarly, you can give a co-owner of a property View and Transact rights.
You can’t reverse these powers after they’ve been granted. Registration as a co-owner
securities that have been given View rights can be changed to grant Transact rights, but not the other way around.
View. In entity accounts, View and Transactrights are not available.
What happens when I exchange a paper bond registered in the name of another person, including a
minor?
When the exchange is approved, the person receives a security that is registered in his or her name.
Gift Box in your Conversion Linked Account (whatever bond you’ve purchased in someone qualifies).
a gift under someone else’s name). If the electronic security contains the person’s Social Security Number,
You can send it to the recipient’s TreasuryDirect account online if you’re the owner.
We will assist you offline if the security does not bear the owner’s Social Security Number.
Prior to delivery, fill out the registration form. In entity accounts, gift bonds are not available.
How do I deliver a converted gift security?
The receiver must have a TreasuryDirect account in order to receive a converted gift security. If the converted gift security bears the owner’s Social Security Number, you can deliver it to the recipient’s TreasuryDirect account online by selecting it from the Conversion Linked Account Gift Box and following the delivery instructions.
Will my electronic securities have the same issue date as the paper bonds I turn in?
Yes, each electronic security will have the same issue date as the paper bond you provided, as well as the same current redemption value.
Will my electronic securities earn the same rate of interest as my paper bonds?
Yes, based on the series and issuance date, paper bonds and electronic securities earn the same rate of interest.
Will my electronic securities have the same maturity period as my paper bonds?
Yes, based on the series and issue date, paper bonds and electronic securities have the same maturity time.
Is the minimum holding period the same on electronic securities as paper bonds?
Yes, electronic securities and paper bonds have the same minimum holding duration. One year is the current minimum holding period.
How do I redeem my bonds after they are exchanged?
Via the same way that you request redemption of an electronic security purchased in TreasuryDirect, you can schedule a complete or partial redemption through your TreasuryDirect account.
In TreasuryDirect, what do the “Amount and “Current Value columns show?
The figure 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 to electronic.) 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 TreasuryDirect.gov a secure site?
Bonds purchased through TreasuryDirect are kept safe in your account with the US Treasury. You have till they develop or you redeem them, whichever comes first. Using savings bonds to pay for some college expenses also provides additional federal tax benefits if all conditions are met.
Can you transfer paper bonds?
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 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.