If you have multiple savings bonds that accrue interest, it may be beneficial to learn how to collect a US savings bond so that you have the money when you need it.
How to collect a US savings bond
Unless you have special circumstances, figuring out how to collect a US savings bond is relatively easy. Bonding in unusual circumstances, such as the death of the bondholder, a minor child, or other circumstance, may require additional information. Check with your financial institution about these circumstances.
Take advantage of EE / E and I series bonds.
Most EE / E and I series bonds can be cashed at your local bank. Before you collect them, you must make sure that you have kept them for more than 12 months. If you collect them within five years from the date of issue, you will lose interest for three months.
You can redeem up to $ 1,000 in bonds once with a financial institution. If you need to redeem more, consult your local bank to complete the appropriate documents to send to the nearest Retail Treasury website.
To collect an EE / E or I bond, follow these steps:
- Bring the paper bond to the bank where you have an account.
- If you do not have an account with a financial institution or have not had one for a very long time, bring government-issued identification forms, such as your driver’s license or passport.
- Sign the guarantee in front of the cashier when you collect it.
Take advantage of the HH / H series bonds
As the HH / H series bonds are no longer issued, ordinary banking and financial institutions will not collect them. Instead, you need to do the following:
- Visit your local bank for a certified or secured bond signature.
- Submit the collateral (bonds), along with any additional forms required, to the nearest Retail Treasury website.
Payment of HH / H series bonds is completed by direct deposit into your bank account.
Redemption of TreasuryDirect bonds
An electronic account called TreasuryDirect is the newest way to buy and redeem government-issued invoices, notes, bonds, TIPS, and savings bonds. With your online account, you do not receive a paper form for your invoice. Instead, everything is handled online, including redemption. Follow the instructions in your account to capitalize on electronic certificates.
Bond redemption considerations
IRS Form 1099-INT is issued when you collect a savings bond, which is used for tax purposes. The tax considerations for EE / E Series, I Series, and HH / H Series are different, so take this information under your recommendation before collecting large amounts in one year. You may want to seek financial advice from your tax professional before cashing. Another thing to consider before you collect your bonds is the actual value of the bonds you want to collect. Use the Savings Bond Calculator to figure out how much your bonds are worth. If they are not worth much more than what you paid or if they have a high-interest rate, we recommend that you wait until you receive them.