How Can I Cash a Savings Bond at a Local Bank
Posted by | Tuesday, 6 April, 2010 | No Comments
If you have some Savings Bonds and you would like to cash them, most banks and even Credit Unions will cash them, but call first because some banks do not cash-out Savings Bonds. Make sure though, that the Savings bonds you have are the Series EE, which is the most commonly purchased bond, or the Series I, which is a Savings Bond protected from inflation rates. Banks can not cash the Series HH bonds, which have been discontinued as of 2004 and are now considered as Series EE Savings Bonds, the banks will forwarded these to the Federal Reserve where they will be instructed to send the funds directly into your bank account.
Before you cash-in the Savings Bonds, consider if you’re cashing them in too soon. You can cash-in the Savings Bonds at anytime, you do not have to wait until they mature, both the Series EE and I can be cashed-in after one year of the purchase date, but there will be a early cash-in penalty fee if cashed-in before 5 years. Plus, they might not
have yielded to their full potential amount if cashed-in too soon. To find out what the Savings Bonds are worth before you cash-in, you can go to the United States Treasury’s savings bond calculator, which can be found online, or call your local bank and they can tell you what they are worth.
The longer you hold on to your Savings Bonds, the more they will yield, the interest will grow until their maturity date, which is usually 30 years if you purchased the Savings Bonds Series EE before 1993. If you purchased your Savings Bonds Series EE after 1993, they mature only after 18 years. If your purchased your Savings Bonds Series EE after 1997, the maturity is 30 years. Savings Bonds Series EE purchased after 2005, will mature in 20 years. The Series I Savings Bonds mature in 30 years of purchase date. Maturity of the bonds is when you can cash-in your Savings Bonds at full face value.
Savings Bonds can not be transferred to another person, or auctioned off, the original name on the Savings Bond is the only person eligible to cash-in the Savings Bond.
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Category: Personal Finance