EE Patriot Bonds

[gassert]

I received an EE bond (I guess they're called Patriot Bonds now? - how patriotic) for my daughter. I haven't seen this since I was a kid. The paper bond is in her name and then below says "or" and then my wife's name.

My options are to keep the paper or register it for online tracking. However, unless someone we know decides to make this an annual gift, I would rather not track a single bond for the next decade. Seems like the best bet is to cash it in and put the money in her 529.

Does my wife just bring this to the bank and collect the cash? Is there something I'm missing?

THanks

[gassert]

Am I missing something in the question? No comments?

[Laura]

gassert,

Sorry we missed your question. You should be able to take it to the bank but sometimes banks are not set up to easily handle these bonds. You might want to check with your bank before visiting there in person.

Laura

[Gigihsu]

What is the issue date of the EE bond? I think you have to hold the EE bonds for at least a year before cashing them.

[Mel Lindauer]

I received an EE bond (I guess they're called Patriot Bonds now? - how patriotic) for my daughter. I haven't seen this since I was a kid. The paper bond is in her name and then below says "or" and then my wife's name.

My options are to keep the paper or register it for online tracking. However, unless someone we know decides to make this an annual gift, I would rather not track a single bond for the next decade. Seems like the best bet is to cash it in and put the money in her 529.

Does my wife just bring this to the bank and collect the cash? Is there something I'm missing?

THanks

Hi gassert:

First, as was mentioned, the bond must be held for one year. There's a loss of the last three month's interest if cashed between one and five years. After five years, there is no penalty.

Remember, if you meet the income qualifications, the EE Bond interest earned is tax-free when used for qualifying educational expenses (investing the EE Bond proceeds in a 529 is a qualifying education expense).

Regards,

Mel