US Savings Bonds

Posts Tagged ‘investment’

Question: Can you redeem a US Savings Bond (Series I) by depositing into an atm?

Answer: Hi Enesha, I’m the Savings Bond Guru from SavingsBonds.com – I hope I can help you with your question.

First, be careful, alot of the other answers from the other users, especially ‘chance’s are completely wrong.

Second, lets directly answer your question, No, you cannot redeem a US Savings Bond thru an ATM transaction. It is true that you must go to a teller and have them do paperwork for the taxes due on the interest earned by that bond. They’ll issue you a 1099-INT. MAKE SURE the bank does not charge you a fee to cash the bond, some banks do this and they shouldnt, it should be a free service.

You can usually cash in your bond at any local savings bank, but before you do, be cautious.

Unfortunately, banks have been known to make large mistakes on US Savings Bonds as they’re not bank products, so, you want to be sure that you’re getting the right value from the bank for your bond.

Also, You will want to know what kind of tax concequences cashing this bond will have on your income when the 1099-INT is generated. Be sure you know what amount of interest will be taxable before you go possibly changing your tax bracket.

To find the value of your Savings Bonds you can go to SavingsBonds.com and use the Bond Guru service to check up on your bonds for free. Use the link below for more information.

Good Luck,
-The Savings Bond Guru

Question: What does the denomination on an EE savings bond really mean?

I have an Us Savings Bond Series EE issued in April of 2008, more than ten years ago, and the denomination on the bond says $100… what does this really mean? if I were to cash it today it’d be worth $76 and I know it was purchased originally for half the denomination, $50… so what is the $100?… any layman explanation of how these work would be greatly appreciated

Answer: Its what the bond will cash for if you hold it to its complete maturity…

Zeitgeist Addendum

Question: What’s the Best Strategy for Series E Savings Bonds?

I own a number of Series E Savings Bonds which have reached full maturity and are no longer gaining interest. Is there a way of converting them to another type of Savings Bonds that gain interest without paying income tax? Or, is the only option to start redeeming them maybe late in the calendar year and early in the next calendar year to spread the tax burden over two years and invest the money into something else?

Answer: You used to be able to convert them to Series H bonds and get another 30 years of maturity. That ended in 2004. Since your bonds have stopped earning interest, cash them in whenever you need/want the money if taxes aren’t a problem, or redeem them over 2 years as you suggested.

RMR: Canadian Savings Bonds