Savings Bond Redemptions Frequently Asked Questions (2024)

FAQs

How long does it take to get savings bonds redeemed? ›

When you cash your bonds online, the cash generally transfers to your checking or savings account within two business days of the request.

If the bond is redeemed by the Treasury Retail Securities Site, they are responsible for issuing the 1099-INT. The 1099s are issued in the year following the redemption, please allow time for the 1099-INT to be mailed to you. If the 1099-INT was not received your, please call 1-844-284-2676 to request a duplicate.

How do I cash my electronic bonds? Go to your TreasuryDirect account. Go to ManageDirect. Use the link for cashing securities.

You can cash in (redeem) your I 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. See Cash in (redeem) an EE or I savings bond.

In general, you must report the interest in income in the taxable year in which you redeemed the bonds to the extent you did not include the interest in income in a prior taxable year.

You just bought a security from the U.S. Treasury. Securities are generally issued to your account within two business days of the purchase date for savings bonds or within one week of the auction date for Bills, Notes, Bonds, FRNs, and TIPS.

Search for matured savings bonds and missing interest using Treasury Hunt, an online tool from TreasuryDirect.

Series I savings bonds, commonly referred to as "I Bonds," fully mature after 30 years. However, you can redeem them as early as one year after purchase. If you do redeem them early, you'll give up the last three months of interest, so you'll need to make sure you really need the money if you want to cash out early.

If you have paper savings bonds, you can fill out the appropriate form and mail it and the bonds you want to cash to the Treasury Retail Securities Services — the address is listed on FS Form 1522. Additionally, you may be able to cash your paper savings bonds at your bank or credit union.

What documents do I need to cash a savings bond? ›

Generally, if you're listed as the registered owner of the savings bond, you should need to bring just the paper bond and one or two current forms of identification to a bank or credit union. While a paper savings bond looks like a check, do not sign it until you are told to do so during the redemption process.

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.

Callable or redeemable bonds are bonds that can be redeemed or paid off by the issuer prior to the bonds' maturity date. When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.

The redemption value is stated as a percentage of face value. For example, a $1000 bond redeemable at 105 is redeemed at 105% of $1000 = $1050.

In many cases, calculating the gain or loss on a bond redemption is fairly simple. If you take the redemption proceeds and subtract what you originally paid for the bond, then the difference will tell you the answer. If it's positive, then you have a gain. If it's negative, you've lost money on the bond.

According to NS&I, it generally takes up to eight working days for your Premium Bond money to reach your bank account. However, it could take up to two weeks to process your payment if posting a withdrawal form. You can cash in your bonds at any time.

Savings Bond purchases are generally issued to your TreasuryDirect account within one business day of the purchase date. If you select a non-business day as your purchase date, we will change it to the next available business day.

Maturity dates for Series EE bonds

If you purchase a Series EE bond today, you are guaranteed to earn a fixed interest rate for 20 years, which is when the bond matures. At 20 years, the government ensures that you will be paid double the face value of the bond.

tool on IRS.gov to check the status of your bond purchase request or call 1-800-829-1954. If the IRS already processed the refund and placed the request for the bond, you should contact the Treasury Retail Securities Site at 1-800-553-2663.