How to Redeem US Savings Bonds

US Savings Bonds are a popular investment tool for individuals who want a safe place to invest their cash with a better return on their investment than the standard savings account.  US savings bonds are often given as gifts to children, family members or students.  Unlike money that is invested in a savings account which is insured by the FDIC, savings bonds are backed by the United States government.  While many consumers are familiar with savings bonds and the many benefits associated with this type of investment vehicle, there are several questions that often pop up regarding how to redeem or cash in this investment.  The answers to the following questions will help individuals navigate the process of redeeming their US savings bonds.

How to Redeem US Savings Bonds

How Much Are US Savings Bonds Worth?

There are several ways to determine how much your savings bonds are worth.  US savings bonds can be taken to the bank to determine their current value or you can calculate the value by entering information regarding the savings bond into an online calculator.  Savings bond calculators can be found on several websites with one of the most popular being Treasury Direct which is brought to you by the US Department of Treasury Bureau of Public Debt.  Regardless of the option you choose to determine the value of your savings bonds, you will have to have the actual bonds in hand to get an accurate calculation.  When using the Treasury Direct website, you will be able to save the information in your own “inventory” should you want to revisit this information in the future.

Where Can You Redeem US Savings Bonds?

Most financial institutions can handle the redemption of US savings bonds.  Contact your local bank before taking the bonds in for redemption to ensure they do in fact handle that sort of transaction.  You will be asked to show a valid ID to prove ownership or if the bond is not in your name, proof that you are the rightful heir entitled to the savings bonds.  It is recommended that you confirm with the bank in advance what form of identification or other documents will be required to redeem your bonds.  If you purchased US savings bonds from Treasury Direct, you can redeem the bonds electronically by following the directions provided by the website.  Your money will be credited to the designated bank account electronically, usually within one day.

Special Requirements to Consider When Redeeming US Savings Bonds

Individuals who are inherit savings bonds, manage their children’s savings bonds or live outside of the United States may be required to take additional steps to redeem savings bonds.  Beneficiaries must present evidence that proves they are the rightful owner of the bond as well as a certified copy of the decedents death certificate.  Parents may redeem savings bonds issued to their minor children by requesting such action in writing.  Individuals living outside of the US can visit Treasury Direct for detailed instructions on how to redeem US savings bonds under a variety of circumstances.

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Date published: October 13, 2010.

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Ryan Guina is the founder and editor of this site. He is a writer, small business owner, and entrepreneur. He served over 6 years on active duty in the USAF and is currently serving in the IL Air National Guard. He also writes about money management, small business, and career topics at Cash Money Life. You can also see his profile on Google.

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