So "where" do you go to cash a savings bond?

[Lisa loves Pooh]

I bank with USAA, so walking into my bank is out of the question.

I received a savings bond that was my grandmother's. She passed in January and it is a POD bond, so I have to cash it with her death certificate and my marriage license.

Can I just go into any bank?

The bond has long since matured and is worth an additional 50% above face value. I'm unclear if there is any reason to wait to cash it. When I looked on line, it seems at some point it will stop earning interest. The bond is a 1989 bond. I have it locked away right now and do not remember the actual series.

 

[OceanAnnie]

I was curious cause I have some bonds too. Here's a good link:

http://www.bankrate.com/brm/news/dollardiva/20010827a.asp

Think before you cash in those bonds
If your Series E bonds were issued before May 1, 1995, they're earning either 4 percent or 6 percent a year. If you're lucky enough to be holding the 6 percent variety, you may want to hang on to them; that kind of interest on a tax-deferred, no-risk bond is hard to come by today. To find out what the bond is earning and what it's worth, plug your numbers into the U.S. Treasury's savings bond calculator.

ETA: Some more good links,

http://www.sec.gov/answers/savingsbond.htm

http://www.treasurydirect.gov/indiv/tools/tools_savingsbondcalc.htm

 

[jlewisinsyr]

We took ours to BofA where we have a savings account. Many banks won't cash them unless you have some sort of account with them.

If you have a Key Bank, they should be able to handle them for you, and there may be some other smaller banks that can as well. Most credit unions (if not all, cannot cash them). You can also mail them to a processing center (and depending on the amounts, you may be required to).

 

[SandrA9810]

for an E series bond, when does it stop earning intereset?

My mom has one from 12/1969. On the calculator it says that it's matured and not earning interest. And it's worth 130$ something.

 

[Lisa loves Pooh]

for an E series bond, when does it stop earning intereset?

My mom has one from 12/1969. On the calculator it says that it's matured and not earning interest. And it's worth 130$ something.

I don't know.

I plugged it in when I received it and it is soon...like within a year or two at the most.

That doesn't make sense b/c the bond is 21/22 years old and it just seemed like an odd age to stop accruing interest.

 

[chloelovesdisney]

I cashed in some savings bonds a couple of years ago. Some local banks would cash them without having an account there, some wouldn't. Chase bank was one that would do so, but I had found out their policy ahead of time. At the actual bank they tried to tell me no. When I insisted they called some customer service number who told them yes, it was their policy to cash savings bonds even for those without a Chase account. (at least at that time) There was a daily limit, I actually had to go twice.

I belong to a credit union and all of my accounts are there, they don't cash savings bonds which seemed strange to me, oh well.

 

[jlewisinsyr]

That doesn't make sense b/c the bond is 21/22 years old and it just seemed like an odd age to stop accruing interest.

It probably stopped earning interest long before now. My partner had bonds from when he was born, and they stopped earning interest 30 years after issue.

 

[ChristmasElf]

We took ours to BofA where we have a savings account. Many banks won't cash them unless you have some sort of account with them.

If you have a Key Bank, they should be able to handle them for you, and there may be some other smaller banks that can as well. Most credit unions (if not all, cannot cash them). You can also mail them to a processing center (and depending on the amounts, you may be required to).

Texans Credit Union will cash them. (used to be called Texins Credit Union)

 

[msmayor]

I don't know.

I plugged it in when I received it and it is soon...like within a year or two at the most.

That doesn't make sense b/c the bond is 21/22 years old and it just seemed like an odd age to stop accruing interest.

Actually, a bond dated in 1969 is 41 years old...not 21/22 years old.

Series E bonds issued between 1965 and 1980 reach final maturity 30 years after issue date...meaning that no matter what, after 30 years no more interest is earned.

Once reaching final maturity, it makes sense to cash it in and deposit it elsewhere to continue to earn interest.

 

[Lisa loves Pooh]

Actually, a bond dated in 1969 is 41 years old...not 21/22 years old.

Series E bonds issued between 1965 and 1980 reach final maturity 30 years after issue date...meaning that no matter what, after 30 years no more interest is earned.

Once reaching final maturity, it makes sense to cash it in and deposit it elsewhere to continue to earn interest.

I realize that. I was referring to my bond. I think 1969 is a different series, so expirations may be different.

 

[msmayor]

I realize that. I was referring to my bond. I think 1969 is a different series, so expirations may be different.

Sorry, didn't realize you were referring to your 1989 bond.

The only bonds issued in 1989 that would have reached final maturity now are HH Bonds. Those stop accruing interest 20 years after issue date.

 

[SandrA9810]

Well there's 3 that have reached the 30yr maturity, and one that will in 2012.

EE $50 09/1982 09/2012 $25.00 $105.44 4.00% $130.44
E $50 05/1973 05/2003 $37.50 $222.28 $259.78 MA
E $25 11/1977 11/2007 $18.75 $109.34 $128.09 MA
E $25 12/1969 12/1999 $18.75 $116.97 $135.72 MA


One of them is in my brother's name, the rest are in my mom's name. She's in her 60's so there's not much point in putting into something long term for her. But are there any good short term investments?? I know if she just cashes it, it'll all go down the drain in a month.

 

[jlewisinsyr]

One of them is in my brother's name, the rest are in my mom's name. She's in her 60's so there's not much point in putting into something long term for her. But are there any good short term investments?? I know if she just cashes it, it'll all go down the drain in a month.

If you want something simple, just put it in a CD or something like that, shop around though, there are some major differences between companies, credit unions tend to be the best from a rate perspective.

 

[Piecey]

As of 06/09 Chase bank would still cash bonds for non-customers.


Locally, we'd go to the Dept. of the Treasury office. The division that handles savings bonds is about a 5 minute drive from my house.

 

[PatsMom]

You can go to any Federal Reserve bank. But if the bond is POD, you can submit it to be reissued in your name if it is still earning interest. There are forms available on the Treasury web site. The old series E bonds pay pretty good interest. Bonds issued in 1980 are reaching final maturity this year (30 years after issue). The rules on final maturity are different for different series of bonds and different dates of issue.

One interesting fact that many don't know is that the tax on the interest is due in the year the bond reaches final maturity, even if you don't cash it. So you can't delay the tax by just not cashing the bond. I've never heard of anyone being charged interest or penalties for paying tax on bond interest on an uncashed bond but technically the IRS could do so.

 

[SandrA9810]

that's interesting about the tax. I doubt my mom has ever paid it. She really didn't uncover them until a couple years ago.
So how do you pay the taxes?? She doesn't generally file a tax return, she might have to for last year cause of recieving SS checks now.