Cashing (Redeeming)Savings Bonds?

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jasminetea
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Cashing (Redeeming)Savings Bonds?

Post by jasminetea » Tue May 14, 2019 7:14 pm

I received some Savings Bonds from 1991..anyone know how to cash them in or how I can check the face value of them?

Silk McCue
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Re: Cashing (Redeeming)Savings Bonds?

Post by Silk McCue » Tue May 14, 2019 7:21 pm

Use this site to get the value.

https://www.treasurydirect.gov/BC/SBCPrice

I cashed mine at my bank - BofA.

Cheers

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whodidntante
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Re: Cashing (Redeeming)Savings Bonds?

Post by whodidntante » Tue May 14, 2019 7:21 pm

You can check their value using the tool on treasurydirect.gov. You can cash them at your friendly local bank.

AerialP
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Re: Cashing (Redeeming)Savings Bonds?

Post by AerialP » Tue May 14, 2019 7:29 pm

Two weeks ago I redeemed a few I-series & EE-series from several years back. It was so very easy. I did look online, with the resources listed above, to see their value before going to redeem them, and it matched to the penny what the clerk tallied as their value.
I used my credit union for the redemption because I like to encourage their local brick-&-mortar presence in my city. Did not make an appointment, simply requested upon arrival a sitdown session in an office with a representative rather than going through the process with a teller in the lobby.

sport
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Re: Cashing (Redeeming)Savings Bonds?

Post by sport » Tue May 14, 2019 7:30 pm

whodidntante wrote:
Tue May 14, 2019 7:21 pm
You can check their value using the tool on treasurydirect.gov. You can cash them at your friendly local bank.
This is true if the bonds are in your name. If not, things are more complex.

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Kenkat
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Re: Cashing (Redeeming)Savings Bonds?

Post by Kenkat » Tue May 14, 2019 7:31 pm

The face value for EE bonds is printed on the bond but is actually the maturity value, with the issue price being half the printed face amount. So a $25 bond sold for $12.50 originally.

Bonds issued in 1991 would have reached their maturity value pretty quickly based on rates at the time. The guaranteed maturity was 12 years @6% but market rates were even higher for most of the period so these bonds should be worth a nice amount over their face value as they kept earning interest after hitting their face value / maturity value.

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jasminetea
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Re: Cashing (Redeeming)Savings Bonds?

Post by jasminetea » Tue May 14, 2019 7:32 pm

Great links, thank you both.

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jasminetea
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Re: Cashing (Redeeming)Savings Bonds?

Post by jasminetea » Tue May 14, 2019 7:35 pm

Kenkat wrote:
Tue May 14, 2019 7:31 pm
The face value for EE bonds is printed on the bond but is actually the maturity value, with the issue price being half the printed face amount. So a $25 bond sold for $12.50 originally.

Bonds issued in 1991 would have reached their maturity value pretty quickly based on rates at the time. The guaranteed maturity was 12 years @6% but market rates were even higher for most of the period so these bonds should be worth a nice amount over their face value as they kept earning interest after hitting their face value / maturity value.
Put it into the calculator and it says the final maturity date is 2022, with 4% interest. Should I wait till then?

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Kenkat
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Re: Cashing (Redeeming)Savings Bonds?

Post by Kenkat » Tue May 14, 2019 7:44 pm

4% is pretty good. I would probably hold on to it unless you expect to be in a higher tax bracket in 2022.

dalbright
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Re: Cashing (Redeeming)Savings Bonds?

Post by dalbright » Tue May 14, 2019 8:14 pm

If they are in your (or i believe a spouse but i'm not an expert on that) name I would try and redeem them in a year you have qualifying educational expenses to help with the taxes. I cashed some last year at chase bank fwiw.

uslee2004
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Re: Cashing (Redeeming)Savings Bonds?

Post by uslee2004 » Tue May 14, 2019 8:22 pm

dalbright wrote:
Tue May 14, 2019 8:14 pm
If they are in your (or i believe a spouse but i'm not an expert on that) name I would try and redeem them in a year you have qualifying educational expenses to help with the taxes. I cashed some last year at chase bank fwiw.
As mentioned above, if conditions met, maybe also consider put proceeds into a 529 plan. Other more knowledgeable member can better help.
uslee

Grt2bOutdoors
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Re: Cashing (Redeeming)Savings Bonds?

Post by Grt2bOutdoors » Tue May 14, 2019 8:28 pm

jasminetea wrote:
Tue May 14, 2019 7:35 pm
Kenkat wrote:
Tue May 14, 2019 7:31 pm
The face value for EE bonds is printed on the bond but is actually the maturity value, with the issue price being half the printed face amount. So a $25 bond sold for $12.50 originally.

Bonds issued in 1991 would have reached their maturity value pretty quickly based on rates at the time. The guaranteed maturity was 12 years @6% but market rates were even higher for most of the period so these bonds should be worth a nice amount over their face value as they kept earning interest after hitting their face value / maturity value.
Put it into the calculator and it says the final maturity date is 2022, with 4% interest. Should I wait till then?
You can't earn 4% in a 30 year US Treasury bond issued today. You can't earn 4% in a 3 year certificate of deposit or a 3 year US Treasury bill today.
If you don't need the money urgently, then I would advise holding it until final maturity in 2022 and collect that "free money" until then. Where are you going to find 4% today?
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Silk McCue
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Re: Cashing (Redeeming)Savings Bonds?

Post by Silk McCue » Tue May 14, 2019 9:50 pm

jasminetea wrote:
Tue May 14, 2019 7:35 pm
Put it into the calculator and it says the final maturity date is 2022, with 4% interest. Should I wait till then?
For me, it would depend on the total value of the bonds. If it is a small amount (ours was) then it might be better to just cash them in.

Cheers

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