How do I cash in mature EE bonds? (2024)

How do I cash in mature EE bonds?

Where do I cash in a savings bond? 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.

Can you still cash EE bonds at a bank?

Where do I cash in a savings bond? 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.

How do I cash in EE savings bonds that have matured?

When those bonds mature and stop earning interest, it is time to redeem them. Redeeming bonds is easy - just take them to a local bank or send them to the Bureau of the Fiscal Service.

What happens to EE bonds after maturity?

Series EE and Series I bonds no longer earn interest when they reach maturity 30 years from the date of issuance. If you have any bonds older than 30 years, we recommend cashing them in immediately because they are no longer earning interest.

What is the penalty for not cashing in matured EE savings bonds?

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.

Do you pay taxes when you cash in EE bonds?

If you hold savings bonds and redeem them with interest earned, that interest is subject to federal income tax and possibly federal gift taxes (highly unlikely as the per-person cap is $10,000 and the gift tax exemption is $17,000).

What happens to EE bonds after 30 years?

If you still have a paper EE bond, check the issue date. If that date is more than 30 years ago, it is no longer increasing in value and you may want to cash it. See Cashing EE and I savings bonds. To find out how much your paper EE savings bond is worth, use our Savings Bond Calculator.

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.

Should I cash out matured savings bonds?

It is relatively simple to cash in savings bonds that have matured and are no longer earning interest. If you need access to cash, even bonds that haven't reached maturity may be worth turning in. If you are struggling with debt, cashing in a bond is a good way to pay it off, even if the bond is cashed in early.

Should I cash in EE bonds now?

You can receive years of “extra” interest by holding the bond beyond the maturity date, but once 30 years have passed, you won't accrue any extra interest. If you want full value, you should hold the Series EE bonds at least until maturity, and if you want extra, you can hold them until 30 years.

Where can you cash Series EE bonds?

You may be able to cash in paper EE bonds at a bank where you have an account or through TreasuryDirect. Ask your bank about its process for cashing savings bonds. Ask your bank how much it will cash at one time. Determine the identification or other documents you will need.

How do I cash in old savings bonds?

You can redeem a savings bond online at the Treasury Department's TreasuryDirect website, by mail or at your local bank or credit union, if they offer the service. Your savings bond must be at least a year old, and you'll need government-issued identification to prove that the bond is yours.

How are EE bonds taxed at maturity?

The bond continues to accrue interest even after reaching its face value, but at “final maturity” (after 30 years) interest stops accruing and must be reported. Note: Interest on EE bonds isn't subject to state income tax.

How do you avoid tax on a mature savings bond?

What documents do I need to cash a savings bond?

In addition to the bonds, you'll need to provide proof of identity, like a United States driver's license, and partner with a notary to notarize and certify your signature on an unsigned FS Form 1522 to your local bank or credit union.

When you receive a savings bond worth $100 you can cash it for $100 right away?

You may not cash in a savings bond for the first 12 months after purchase, and if you redeem before five years have passed, you'll lose three months' worth of interest as a penalty. The government issued its very first savings bond in 1935, and several types have been offered over the years.

Will I get a 1099 for cashing in savings bonds?

If you cash a paper savings bond by mailing it to Treasury Retail Securities Services, we mail you a 1099 by January 31 of the following year. (You can call us for a duplicate statement, if needed, beginning February 15.)

Who pays taxes on EE savings bonds?

Does it matter whose Social Security number is on a savings bond?

Do the address and Social Security Number on the bonds have to match the customer's address and Social Security Number? Not necessarily. The customer may have moved or the bonds may have been a gift and contain the purchaser's information.

How long does it take for a $100 EE savings bond to mature?

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.

Can EE savings bonds lose value?

Electronic Series EE Bonds are sold at face value and are worth their full value when available for redemption. The minimum term of ownership is one year, but a penalty is imposed if the bond is redeemed in the first five years. The bonds earn interest for 30 years.

Can I cash my deceased parents savings bonds?

TO CASH BONDS FOR A DECEDENT'S ESTATE:

Series EE, Series E, and Series I bonds can be cashed at a local financial institution. Some of these transactions may have to be forwarded for further processing. Series HH and Series H bonds must be sent to one of the addresses shown at the bottom of the following page.

Can you convert mature EE bonds to I bonds?

Therefore, when you cash in your series EE bonds, you can simply use the proceeds to purchase I Bonds, he said. When you cash in your EE bonds, you will pay federal but not state income taxes on the interest portion of the redemption, he said.

When should you cash out EE savings bonds?

You can cash in (redeem) your EE bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.

How much is a $50 Patriot bond worth after 20 years?

After 20 years, the Patriot Bond is guaranteed to be worth at least face value. So a $50 Patriot Bond, which was bought for $25, will be worth at least $50 after 20 years. It can continue to accrue interest for as many as 10 more years after that.