The face value of an HH bond is equal to its face value. If the bond says $500, it was purchased for $500 and now has a value of $500.
You cannot cash a savings bond that you find in someone else’s possession or that you purchase on an internet auction site. Savings bonds are not transferable, sellable, or tradeable.
See “Death of a Savings Bond Owner” if you inherit a bond through the death of the bond owner.
What is the procedure for redeeming HH bonds?
FS Form 1522 must be completed and signed (download or order). It’s possible that your signature will need to be certified (see instructions on the form).
Treasury Retail Securities Services, P.O. Box 2186, Minneapolis, MN 55480-2186, with the bonds, FS Form 1522, and any supporting documentation (if needed).
You must submit legal evidence or other documentation to indicate you are entitled to cash the bond if you are not identified as the owner or co-owner on the bond. (Legal evidence is not returned.)
Individual savings bonds cannot be split; they must be distributed in their entirety.
Is it necessary to pay taxes on HH bonds?
Yes, interest payments on HH bonds must be reported as interest income.
every year on your federal income tax return This is a non-transferable interest.
Income taxes imposed by the state or local governments. The Treasury Department publishes an interest income statement.
(Form 1099-INT from the Internal Revenue Service)
each year by January 31st, demonstrating the interest you earned the previous year.
You can also owe taxes on deferred interest.
“Is there any tax liability when I cash HH bonds?” is answered below.
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.
Is it necessary to notarize HH bonds?
This does not require the use of a notary. The Treasury holds off on cashing HH bonds that arrive for redemption a month before interest is due until the following month. If your local bank is unable to assist you with cashing your HH bonds, contact the Minneapolis Treasury Retail Securities site at 800-553-2663.
When I cash in my savings bonds, will I receive a 1099?
On January of the following year, 1099-INTs are posted in TreasuryDirect. Use the ManageDirect page’s URL.
If you cash at a bank, the paperwork is provided. The bank may give you the form right away or mail it to you later, maybe after the year in which you cash the bond has ended.
If you cash with Treasury Retail Securities Services, the form will be mailed to you in January of the following year.
How do HH bonds function?
Every six months, HH bonds pay interest. The bond’s value remains unchanged. When you bought the bond, you paid face value, and when you cash it, we pay you face value.
- To obtain service, dial toll-free 844-284-2676 and speak with a customer service professional. Representatives are available Monday through Friday, 8 a.m. to 6 p.m. Eastern Time, excluding holidays.
Should I redeem my redeemed savings bonds?
If you hold Series E or EE bonds released after 1974, you can use the Treasury Hunt tool to determine if any bonds registered with your Social Security number have stopped paying interest.
If your savings bonds have reached maturity, you should cash them in and invest the proceeds elsewhere. Whether you have paper bonds, check with your bank to see if they cash them (not all banks do, and some will cash in savings bonds only for customers who have had accounts for at least six months). See How to Cash in Savings Bonds for more information.
Is it possible to cash a savings bond at Walmart?
As of 2022, Walmart does not cash savings bonds. Instead, you can cash a paper savings bond at a local bank or credit union. The TreasuryDirect interface can be used to cash electronic bonds. A savings bond can only be cashed after one year of ownership.