Tight on cash? Redeem those old savings bonds (2024)

Kristof is a personal-finance author and syndicated columnist.

Looking for cash to tide you over during these lean times? The Treasury Department is urging Americans to quiz their parents and grandparents this holiday season about whether they squirreled away U.S. savings bonds that have stopped earning interest.

The reason: About $16 billion of these bonds haven’t been redeemed.

The government suspects that the owners have either died or forgotten about the investments that they bought in the 1940s, ‘50s, ‘60s and ‘70s.

Some of them are engraved certificates suitable for framing. But if you find one gathering dust in Grandma’s attic, know that it is worth much more than its face value -- perhaps almost 10 times as much.

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In other words, a bond that says it’s worth $100 could be worth nearly $1,000. But don’t be fooled into thinking that the oldest ones are the most precious.

A $100 bond issued in January 1943, which stopped earning interest in 1983, is worth just $399.80. But a $100 bond issued in January 1965, which earned a more generous rate until 2005, is worth a cool $936.44.

Bonds issued after 1965, however, earned interest for just 30 years. As a result, a $100 bond issued in January 1966 is worth just $512.52 today -- a bit more than half the value of the bond issued a year before.

If your search turns up a bond certificate, you can find out how much it is worth with the Treasury Department’s savings bond calculator at www.TreasuryDirect.gov.

You can plug in the bond’s serial number, or enter the bond series (EE, E, I or “savings note”) and the month and year the bond was issued.

The resulting chart will show the original purchase price and how much it’s currently worth. If the bond is still earning interest, the chart also will tell you the interest rate.

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If you have multiple bonds -- millions of people bought as many as a dozen bonds a year through payroll deductions -- you can keep plugging in bond numbers or issue dates and the calculator will create a running tally.

If you have misplaced a savings bond, you can use the Treasury Hunt tool on the TreasuryDirect website, which searches using the owner’s Social Security number.

If you find a bond through Treasury Hunt, your next step is to ask the government to replace it or to send you the amount of money it’s worth. To do that, you must submit a form called PD F 1048, which you can either download from the website or receive by mail after making a request through the website.

Treasury Hunt, however, goes back only to 1974. If you’re convinced that you own a bond purchased before then, you need to fill out the PD F 1048 form to have the Treasury search its paper files.

If you suspect your late parents or grandparents owned savings bonds, you can find out by entering their Social Security numbers into the Treasury Hunt tool. If that turns up any unredeemed bonds, you’ll need to go through the same process as if you’d lost a bond.

But in this case the Treasury will ask for additional documentation to show that you are the rightful heir, said Stephen Meyerhardt, spokesman for the savings bond program.

If there are multiple heirs, another form on the Treasury’s website allows you to ask for the bond’s value to be divided and for each share be sent to its owner.

If you’re looking for the fastest way to get cash for your savings bonds, take them to a local bank, credit union or savings and loan. Most serve as redemption agents for savings bonds.

At a time when money is scarce, Meyerhardt said, make sure you’re not sitting on bonds that are no longer earning interest.

“Some people know they have them, but they don’t want to cash them in for some reason,” he said. “These are registered government securities, and we stand ready to replace them or cash them out to the person who is entitled at any time.”

--

kathy.kristof@latimes.com

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Tight on cash? Redeem those old savings bonds (2024)

FAQs

Is there a penalty for not cashing an EE bond after 30 years? ›

While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.

Should I cash in old savings bonds? ›

You can get your cash for an EE or I savings bond any time after you have owned it for 1 year. However, the longer you hold the bond, the more it earns for you (for up to 30 years for an EE or I bond). Also, if you cash in the bond in less than 5 years, you lose the last 3 months of interest.

How much is a $100 series EE bond worth after 30 years? ›

How to get the most value from your savings bonds
Face ValuePurchase Amount30-Year Value (Purchased May 1990)
$50 Bond$100$207.36
$100 Bond$200$414.72
$500 Bond$400$1,036.80
$1,000 Bond$800$2,073.60

How do I cash out old savings bonds? ›

You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks.

What happens to EE bonds after 20 years? ›

Key takeaways. Series EE bonds issued today will mature in 20 years, and they are guaranteed to double in value over that time. You can let the bond continue to accumulate interest for an additional 10 years after maturity.

Can you cash a bond that hasn't matured? ›

It's possible to redeem a savings bond as soon as one year after it's purchased, but it's usually wise to wait at least five years so you don't lose the last three months of interest when you cash it in. For example, if you redeem a bond after 24 months, you'll only receive 21 months of interest.

How do I avoid taxes when cashing in savings bonds? ›

You can skip paying taxes on interest earned with Series EE and Series I savings bonds if you're using the money to pay for qualified higher education costs. That includes expenses you pay for yourself, your spouse or a qualified dependent. Only certain qualified higher education costs are covered, including: Tuition.

What is the final maturity of a $100 savings bond? ›

U.S. Savings Bonds mature after 20 or 30 years, depending on the type of bond: Series EE bonds mature after 20 years. They are sold at half their face value and are worth their full value at maturity. Series I bonds are sold at face value and mature after 30 years.

How much is a $50 savings bond worth? ›

Total PriceTotal ValueTotal Interest
$50.00$69.94$19.94

Do bonds expire after 30 years? ›

Series I savings bonds, commonly referred to as "I Bonds," fully mature after 30 years. However, you can redeem them as early as one year after purchase. If you do redeem them early, you'll give up the last three months of interest, so you'll need to make sure you really need the money if you want to cash out early.

Do EE bonds double in 30 years? ›

Series EE savings bonds are a low-risk way to save money. They earn interest regularly for 30 years (or until you cash them if you do that before 30 years). For EE bonds you buy now, we guarantee that the bond will double in value in 20 years, even if we have to add money at 20 years to make that happen.

How do I know if my Series EE bonds are mature? ›

All Series EE Bonds reach final maturity 30 years from issue. All Series EE bonds reach final maturity 30 years from issue. Series EE savings bonds purchased from May 1995 through April 1997 increase in value every six months. The interest rate is compounded semiannually.

What happens to uncashed savings bonds? ›

For those fully matured bonds remaining unredeemed, there is no active program by the Bureau to locate the bondholders and pay them the proceeds to which they are entitled. Traditionally, it has been up to the registered owner to remember to redeem the matured bond decades after the initial purchase.

Will banks cash savings bonds? ›

Banks and credit unions can redeem savings bonds over the counter.

What documents do I need to cash a savings bond? ›

If you're cashing in a paper savings bond of $1,000 or less, you'll need FS Form 1522 and a copy of your driver's license, passport, state ID or military ID. If the bond amount is more than $1,000, you must have your signature certified by a notary or certifying officer.

Do savings bonds expire after 30 years? ›

Series EE savings bonds are a low-risk way to save money. They earn interest regularly for 30 years (or until you cash them if you do that before 30 years). For EE bonds you buy now, we guarantee that the bond will double in value in 20 years, even if we have to add money at 20 years to make that happen.

Is there anything you can do with a mature EE bond without paying taxes? ›

You do have to pay Federal taxes on the interest your series EE savings bond earns. You do not have to pay taxes at the state and local levels. The reporting is the same as series I bonds. You can also avoid paying taxes on the interest if you use the funds for qualified higher education expenses.

What happens if you hold a bond until maturity? ›

Investors who hold a bond to maturity (when it becomes due) get back the face value or "par value" of the bond. But investors who sell a bond before it matures may get a far different amount.

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