Time to Cash in Your U.S. Savings Bonds

Jan 07, 2024 By Susan Kelly

What's Your Bond Worth?

To calculate the value of your old bonds, you can utilize this Savings Bond Calculator on the TreasuryDirect website. It will require the type of bond, the denomination, and the date of its issue. You can also input the serial number of your bond; however, you don't have to enter that to determine an estimate. The results of the calculator could delight you. For instance, the bond of $50 issued in August 1982, where someone could have given $25, is worth $146.90. A $100 bond issued in February 1984 is worth $230.64.

If you suspect you own several old savings bonds, however, you've lost track of them, you might be able to submit claims to the Treasury by filing Fiscal Service Form 1048, Claim for Stolen, Lost, or Destroyed United States Savings Bonds. Unfortunately, the wildly popular web-based tool called Treasury Hunt was removed at the beginning of 2017.

There are regulations regarding how to cash in bonds. For instance, if, for example, you own electronic bonds through TreasuryDirect and you want to cash them, you have to pay at least $25 or the amount that is greater than it in 1-cent increments or if you are only able to cash a portion of the bond's worth such as $25 from 100 bonds and you want to put at least $25 within the account of your Direct Treasury account. As you cash in a bond, the money you receive comprises the interest earned on the bond and its principal value.

There are various rules regarding paper bonds, which differ depending on what type of bond you have. For instance, certain institutions don't accept cash for bonds while other institutions will. If you send in your bonds on paper, send the bonds directly to Treasury Retail Securities Services. The site says it will take them in cash provided you meet the conditions for cashing them at the Treasury. Although electronic bonds can be divided, when you own individual bonds on paper, you must redeem the bond for the full value of your bond.

When Should You Cash in The Savings Bond?

There are guidelines regarding how you can cash the savings bond, and they typically depend on the form of bond you have. Most of the time, the bond must be owned by you for a full calendar year, i.e., a minimum of 12 months after the date the bond was purchased to make the cash. Once you reach one year, then you can proceed and cash your bond; however, you'll be charged a penalty of three months' interest from the bond. There's no penalty if you keep the bond for five years. It is beneficial to hold the bonds. The longer they age, the higher yields interest bonds earn.

You've Stopped Earning Interest

The choice to cash out savings bonds is easy if the bond cannot earn interest. However, settling your savings bond before the due date could be a viable option depending on your present financial situation. It's always best to investigate your savings bond before taking it out for cash. To get the current price, bonds can be cashed earlier, beginning at the one-year mark. But, you'll forfeit three months of dividends if you decide to cash them in before the expiration of five years.

Creating Debt and Cashing Out

If you require immediate cash, reserving savings bonds is better than committing to debt. If you pay an amount to redeem your savings bond earlier, it's a single cost compared to the ongoing costs of interest on the credit card or personal loan.

Calculating the Bond Value

It is possible to calculate the value of a savings paper by using this online Treasury calculator. It will tell you how much the bond is worth in the present, what you bought the bond for, the amount of interest you have earned up to now, and your cash value if you cash out today. If you have electronic bonds, you can log on to TreasuryDirect.gov and check their worth.

Electronic Bond and Paper Bond

To make a withdrawal from electronic bonds, visit Treasurydirect.gov to follow the steps on your account. After all, is said and done, you'll have the money deposited into your bank account within 2 working days. If you have paper bonds, it's necessary to conduct some research. If you own this bond, you can cash them to an institution or mail them to the Treasury department. The latter is the quickest method. You'll be required to carry proof of identity and your bond.

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