How to Cash Savings Bonds in an Emergency
Check the value of your bonds online., Cash matured bonds first., Cash immature bonds selectively., Ensure that you can cash the bonds.
Step-by-Step Guide
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Step 1: Check the value of your bonds online.
You can do this using the calculator at the U.S.
Treasury's website.
Have your bonds handy when you go to the website.
Select the series and denomination of your savings bond from the designated drop-down menus.
Enter the issue date of the bond in the appropriate field and click "Calculate." The following page will show you the current value of the bond.
Change the date field to see what that same bond would be worth if you cashed it in at a later date. -
Step 2: Cash matured bonds first.
Cash in savings bonds that have already matured before any others.
Matured bonds have reached their maximum value and are no longer earning interest.
The amount of time it takes for a bond to reach maturity is based on the bonds' series, but most bonds have a base maturity period of 20 years. , If mature bonds won't cover the cost of your emergency, cash the immature bonds that have come the closest to their earning potential.
Start with the oldest bond first; in most cases the earliest savings bond will be closest to maturity, unless your bonds are from multiple series.
Check the interest rates each bond is earning.
The rate of the interest was determined at the time you purchased the bond.
The easiest way to find out the rate is to use the calculator on the U.S.
Treasury's website.
Series EE bonds, from the 1980s and 1990s, have an extended maturity of 10 years beyond the 20-year base.
These savings bonds accrue interest for a total of 30 years, and so have the potential to be worth more than their face value.
Consider time of year for bonds bought before May
1997.
These bonds accrue interest every 6 months, so you will lose half a year's interest if you cash them right before they have completed a cycle.
Cash them for your emergency if they have recently completed a cycle. , After you have determined which bonds you would like to cash, make sure that you are eligible to cash them.
Bonds that are too recent might not be available to cash in an emergency.
EE, E, and I savings bonds cannot be cashed until they have matured for a full year.
However, if you live in an area that has been affected by a natural disaster, you may be able to cash your bonds early.If your area has been affected by flood, fire, hurricane, or tornado, check the Press Releases section of the US Treasury website to see if you are eligible to redeem bonds that are less than a year old.
If you co-own a bond, you can cash the bond independently of its co-owner.
If you are currently in another country, you will need to sign your request in the presence of the appropriate official.
This official could be a US diplomatic or consular representative, an officer of a foreign branch of a bank that is incorporated in the US or US territory, or a notary.if you are in a country that is not included in the Hague Convention, a U.S. diplomatic or consular officer must approve the official's character and jurisdiction.
If you are not a US Citizen, you will also need to fill out IRS Form W-8BEN. -
Step 3: Cash immature bonds selectively.
-
Step 4: Ensure that you can cash the bonds.
Detailed Guide
You can do this using the calculator at the U.S.
Treasury's website.
Have your bonds handy when you go to the website.
Select the series and denomination of your savings bond from the designated drop-down menus.
Enter the issue date of the bond in the appropriate field and click "Calculate." The following page will show you the current value of the bond.
Change the date field to see what that same bond would be worth if you cashed it in at a later date.
Cash in savings bonds that have already matured before any others.
Matured bonds have reached their maximum value and are no longer earning interest.
The amount of time it takes for a bond to reach maturity is based on the bonds' series, but most bonds have a base maturity period of 20 years. , If mature bonds won't cover the cost of your emergency, cash the immature bonds that have come the closest to their earning potential.
Start with the oldest bond first; in most cases the earliest savings bond will be closest to maturity, unless your bonds are from multiple series.
Check the interest rates each bond is earning.
The rate of the interest was determined at the time you purchased the bond.
The easiest way to find out the rate is to use the calculator on the U.S.
Treasury's website.
Series EE bonds, from the 1980s and 1990s, have an extended maturity of 10 years beyond the 20-year base.
These savings bonds accrue interest for a total of 30 years, and so have the potential to be worth more than their face value.
Consider time of year for bonds bought before May
1997.
These bonds accrue interest every 6 months, so you will lose half a year's interest if you cash them right before they have completed a cycle.
Cash them for your emergency if they have recently completed a cycle. , After you have determined which bonds you would like to cash, make sure that you are eligible to cash them.
Bonds that are too recent might not be available to cash in an emergency.
EE, E, and I savings bonds cannot be cashed until they have matured for a full year.
However, if you live in an area that has been affected by a natural disaster, you may be able to cash your bonds early.If your area has been affected by flood, fire, hurricane, or tornado, check the Press Releases section of the US Treasury website to see if you are eligible to redeem bonds that are less than a year old.
If you co-own a bond, you can cash the bond independently of its co-owner.
If you are currently in another country, you will need to sign your request in the presence of the appropriate official.
This official could be a US diplomatic or consular representative, an officer of a foreign branch of a bank that is incorporated in the US or US territory, or a notary.if you are in a country that is not included in the Hague Convention, a U.S. diplomatic or consular officer must approve the official's character and jurisdiction.
If you are not a US Citizen, you will also need to fill out IRS Form W-8BEN.
About the Author
Benjamin Collins
Specializes in breaking down complex crafts topics into simple steps.
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