Comments on: An old savings bond

Question: An old savings bond

rolypolyman — Fri, 19 May 2006 09:38:44 -0800

I found a $100 Series EE savings bond of mine that matured in 1999. Did it continue appreciating after 1999 or is it limited to $100 forever? None of the resources I've checked tell me the answer. Where can I redeem it locally (U.S.) if I don't have a local bank branch?

By: genefinder

genefinder — Fri, 19 May 2006 09:41:03 -0800

These bonds continue to mature, so this will be worth more than the $100 face value. I have cashed in many over the years.

By: genefinder

genefinder — Fri, 19 May 2006 09:42:32 -0800

Here's a link I found to a calculator

By: rolypolyman

rolypolyman — Fri, 19 May 2006 09:43:01 -0800

OK thanks. I guess I can just deposit it with my bank via mail the same way I do checks.

By: genefinder

genefinder — Fri, 19 May 2006 09:44:10 -0800

I guess it will be worth more than $100 eventually. It hasn't matured yet.

By: neustile

neustile — Fri, 19 May 2006 10:02:15 -0800

I guess I can just deposit it with my bank via mail the same way I do checks.

I don't know about that... the times I've "deposited" bonds they make me sign them in person in front of the teller.

By: SpecialK

SpecialK — Fri, 19 May 2006 10:18:12 -0800

Yep, that's an in-person thing. You might be able to do it at a post office, I can't remember.

genefinder: It has a maturation date of 1999, not an issue date of 1999. So it is mature. I believe that bonds like this continue to accrue interest for 14 years after the maturation date, but don't quote me on that.

By: cribcage

cribcage — Fri, 19 May 2006 10:19:54 -0800

Call ahead and ask. Some banks don't cash savings bonds, at all. Others only do it for bank customers. (And yes, still others will do it for anyone.)

By: yz

yz — Fri, 19 May 2006 10:23:57 -0800

Most local bank offices process federal bonds; also, you will need to present it and identification to the bank. Banks at which you don't have an account may redeem up to $1000 in bonds only.

From the U.S. Treasury's Savings Bonds Owner's Manual:

5.2. Where to redeem
You can redeem paper savings bonds in about 40,000 financial institutions nationwide that are authorized as paying agents by the Treasury Department.

...

5.3. How to redeem
To redeem I Bonds and Series EE Savings Bonds, simply take your savings bonds into your financial institution with proper identification. A customer service representative will verify your identification, take your Social Security Number for tax reporting purposes and walk you through the process of redeeming your savings bonds.

By: yerfatma

yerfatma — Fri, 19 May 2006 10:53:50 -0800

Crap, I was hoping to give you the good news that you could now buy Series HH bonds, designed for those so patient they would wait until a Series EE bond matured because that's the only thing you could buy HH bonds with, but it looks like the fun stopped in 2004.

By: mojohand

mojohand — Fri, 19 May 2006 10:56:11 -0800

You sell savings bonds at a bank. You need ID and your SSN so they can report interest you earned to the IRS, and they'll send you a 1099-INT next January.

But one of the benefits of US Savings Bonds is that they tax-shelter their compounding interest. So unless you need the money immediately, or you've another investment that will reliably pay better than the government-backed, tax-sheltered 4% or so interest you're getting from your bond, why be in a hurry to sell it?

By: trevyn

trevyn — Fri, 19 May 2006 11:44:49 -0800

why be in a hurry to sell it?

Because it's 4% or so? Not everyone is after "reliable" in their investments.

By: Lame_username

Lame_username — Fri, 19 May 2006 12:12:06 -0800

EE savings bonds continue to earn interest for a total of 30 years from date of issue. No EE series savings bonds have reached their sunset period yet (source: savingsbond.gov). EE bonds were introduced in 1980, so the first ones to expire would be in 2010.

The government provides a pretty handy on-line calculator to determine the current value of your bond.

You should be able to cash your bond at your bank with no problems at all.

By: Lame_username

Lame_username — Fri, 19 May 2006 12:13:35 -0800

Corrected link for savinsbond.gov. I even did preview, but I'm dumb.