The interest rate on Series I bonds is derived from two parts: a fixed interest rate that is available at the time when the bond is purchased and an inflation rate that is calculated twice per year. You cannot cash in a savings bond until it is at least one year old. You may want to consider online redemption through TreasuryDirect.gov. Ara has a BS in Accounting and Finance from San Francisco State University, is a Commissioned Bank Examiner through the Federal Reserve Board of Governors, holds the Chartered Financial Analyst designation, is a Certified Financial Planner™ practitioner, has a Certified Public Accountant license, is an Enrolled Agent, and holds the Series 65 license. To learn more about how to redeem savings bonds, check out the Treasury Department’s guide. Enter the bond’s series (EE, I, etc. I have a Series I savings bond. Redeeming savings bonds is simple. unlocking this expert answer. For help determining if your savings bond can be redeemed yet, keep reading! There is no charge to redeem a US savings bond. A graduate of Rice University, he has written for several Fortune 500 financial services companies. The U.S. Department of Treasury estimates that there are billions of dollars in unclaimed savings bonds that have yet to be redeemed. Make sure the bond is eligible for redemption. Our stepmother refuses to give them to us unless we agree to give her half. By law, savings bonds never expire, and there is no deadline for owners to redeem them. Please help us continue to provide you with our trusted how-to guides and videos for free by whitelisting wikiHow on your ad blocker. Benefits. Savings Bonds complement your other savings and investments as a safe way to save for the long term. However, you must redeem a minimum of $25 at a time, and you need to leave at least $25 in your TreasuryDirect account. There are several types of U.S. savings bonds that have been issued over the years, some of which are no longer offered by the government but are still owned by investors. Ben is based in Des Moines, Iowa. Make sure you get your signature certified. Social Security and savings bonds: 2 Q&A's First, Wenner says, the savings bonds must be series EE bonds issued after 1989 or series I bonds. The physical certificate is required to redeem the bond. © 2020 Forbes Media LLC. However, many people still own savings bonds that were issued on paper. Redeeming an I or EE bond before it is 5 years old will result in the loss of the last 3 months of accrued interest. If your savings bond was purchased electronically, such as one of the Series EE or Series I … The Power of Attorney document must state explicitly that you can cash the savings bonds. Send us a signed FS Form 1522 (download or order). By signing up you are agreeing to receive emails according to our privacy policy. Avoid Tax on Inherited Savings Bonds You might have a different option if you inherit the bonds. This will relieve you of the burden of storing your certificates. Your interest income from a U.S. savings bond can be reported to the IRS during each year when the interest was accrued, or you can report the interest income all at once after redeeming the bond. Talk with a professional tax advisor to decide which reporting method makes sense for your overall tax situation. Good job! Series I Savings Bonds are sold electronically on TreasuryDirect and also can be purchased in paper form by using your IRS tax refund. This article was co-authored by Ara Oghoorian, CPA. Can I redeem my savings bonds and still file a 1040EZ? Redeem your electronic savings bonds. Nick Doe on behalf of John Doe. The quickest way to redeem a savings bond through power of attorney is to take the bonds to the principal’s bank. Who Is Eligible For The $600 Stimulus Check? Yes. It makes redeeming bonds significantly easier. ", "Great source of helpful information. Frequently Asked Questions. You will have to sign the "Request for Payment" section of the bond. 11 March 2020. You can also have an identifier take you to his bank where he has had an account for 6 months. Certified Financial Planner & Accountant. If the bank won't redeem your bonds, try the Federal Reserve Bank. How do I redeem savings bonds that were left to me by someone who is deceased? You also have the option to sell the bond before it matures on a secondary market, and you may be forced to redeem the bond if the municipality calls it. Your signature will have to match the signature on file. Once you have cashed the savings bond, the IRS will send you a 1099-INT form, which will have the amount of money you redeemed the bonds for, … {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/8\/82\/Redeem-Savings-Bonds-Step-1-Version-2.jpg\/v4-460px-Redeem-Savings-Bonds-Step-1-Version-2.jpg","bigUrl":"\/images\/thumb\/8\/82\/Redeem-Savings-Bonds-Step-1-Version-2.jpg\/aid1357749-v4-728px-Redeem-Savings-Bonds-Step-1-Version-2.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"