My experience cashing EE/IBonds at local bank

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Raybo
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My experience cashing EE/IBonds at local bank

Post by Raybo »

I wanted to report on my recent experience cashing EE and IBond at a Bank of America branch.

I could have cashed up to 10 at the teller window. But, there is only one at the bank and there is usually a line. In addition, I was told it took a while to do this as each bond has to be individually verified.

One of the officers of the bank suggested submitting them to them bank and letting them deal with them. I was a bit skeptical as sending bonds to Treasury Direct would take a long time. But, I didn't need this money quickly, so I thought I'd try it and see what happened.

I filled out a form and signed all the bonds. This took about 20 minutes, which included getting them out of the safety deposit box. I had an appointment and the transaction wasn't unusual nor required the officer to search for forms nor ask someone how to do it.

The money showed up in my account within a week. I was pleasantly surprised.

I just gave them 15 IBonds and will report back when the money hits the account.
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Johm221122
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Re: My experience cashing EE/IBonds at local bank

Post by Johm221122 »

Very similar to my experience when I cashed in my EE bonds when they matured. Nice to here I'll have little problem when I cash in my I bonds in a few years when they mature
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nisiprius
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Re: My experience cashing EE/IBonds at local bank

Post by nisiprius »

Sorry, I don't understand exactly what you did. You took out the bonds, you filled in a form, and then... what?
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Rocinante Rider
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Re: My experience cashing EE/IBonds at local bank

Post by Rocinante Rider »

If you have an account at the bank, redeeming your paper bonds should not be a problem. Over the last three to four years, I've redeemed and deposited close to 100 paper EE bonds at my local bank. When the bank isn't busy, the teller has done the transaction while I wait. At other times when I've been redeeming many bonds (e.g., 5-15), I've just left them with the bank, and they've done the redemption later in the day with the deposit showing in my account before the end of the day. I'm not sure what form you had to fill out. No form needed for me - just a deposit slip for my bank account.

I am glad, however, to have finally redeemed the last of our EE bond and to be done using a safety deposit box to hold the bonds and dealing with the accounting hassle (I switched to accrual method of reporting interest a few years ago to help with planning Roth conversions and NIIT thresholds). The 4% interest on my bonds was great until recently, so I redeemed many bonds that still had two to three years until final maturity.
NM_vaga
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Re: My experience cashing EE/IBonds at local bank

Post by NM_vaga »

Do you get a tax form at the end of the year, or do you have to keep track of the interest yourself for taxes?
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Rocinante Rider
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Re: My experience cashing EE/IBonds at local bank

Post by Rocinante Rider »

NM_vaga wrote: Tue May 07, 2024 12:14 pm Do you get a tax form at the end of the year, or do you have to keep track of the interest yourself for taxes?
Your bank will send you a 1099-int form reporting the amount of interest from your paper bonds redeemed by them during the year. If you have not been using the accrual method to report interest, that's all you need.

If you've been using the accrual method for reporting savings bond interest each year, you need to keep track of that. While continuing to hold the bonds, each year you must report on your tax return the additional interest accrued on the bonds during that year. You calculate this yourself using the Treasury Direct on-line calculator. When you redeem the bonds and get a 1099-int form from the bank, you note "US savings bond interest already paid" on your tax return as an offset to the bank's 1099.
cshell2
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Re: My experience cashing EE/IBonds at local bank

Post by cshell2 »

I just cashed in 15-20 I bonds at my credit union a couple months ago and it was even simpler than that. I just needed to sign them all and give them my driver's license. He had to enter each on in individually and sign them all too I believe, but it did not take him long to do at all. 10 minutes maybe? The deposit showed up in my account with all the interest immediately.
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Re: My experience cashing EE/IBonds at local bank

Post by Rocinante Rider »

cshell2 wrote: Tue May 07, 2024 12:46 pm I just cashed in 15-20 I bonds at my credit union a couple months ago and it was even simpler than that. I just needed to sign them all and give them my driver's license. He had to enter each on in individually and sign them all too I believe, but it did not take him long to do at all. 10 minutes maybe? The deposit showed up in my account with all the interest immediately.
Exactly. Cashing at my bank was just as fast and simple. When I had many bonds to redeem and they were really busy, however, I just left the bonds with them and they did the 10-15 minute processing later in the day when things were quieter.

Using accrual method for tax purposes makes tracking and reporting to the IRS a bit more complicated, but it has zero impact on the redemption process at the bank. The bank didn't know or care that I was using accrual method.
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Re: My experience cashing EE/IBonds at local bank

Post by gavinsiu »

A similar experience when my mom cash out her EE savings bond. They had her fill out a form and then money was deposited into her bank account. The bank then provided a receipt that can be used as 1099-INT later. In the past couple of year, they started sending a 1099-Int during tax time.

Note that some banks, Chase for example, do not cash EE bonds.
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Re: My experience cashing EE/IBonds at local bank

Post by Raybo »

nisiprius wrote: Tue May 07, 2024 11:00 am Sorry, I don't understand exactly what you did. You took out the bonds, you filled in a form, and then... what?
The form and the bonds were given to the bank to process them. I thought they’d send them to Treasury Direct, but they likely simply processed them one at a time in the back office somewhere so that I wouldn’t monopolize the single teller for a long time. I was surprised the turnaround was so quick.
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CletusCaddy
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Re: My experience cashing EE/IBonds at local bank

Post by CletusCaddy »

Would be helpful if we actually compiled a list of banks that do / don’t deposit savings bonds.

So far:

Do
Bank of America

Don’t
Chase
gavinsiu
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Re: My experience cashing EE/IBonds at local bank

Post by gavinsiu »

Do
Bank of America
Wells Fargo

Don’t
Chase
catnapper
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Re: My experience cashing EE/IBonds at local bank

Post by catnapper »

US Bank says they'll do it if you have an account "that has been open for five (5) years or more."
https://www.usbank.com/customer-service ... 09712.html
dh
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Re: My experience cashing EE/IBonds at local bank

Post by dh »

I am glad that the OP had such a good experience; I did not! The actual bank where I purchased the original paper bonds stopped redeeming I bonds. Never in my wildest imagination did I think that the same bank that accepted my money to purchase the I bonds wouldn't redeem them in the future. :shock:

I know I am an outlier, but my electronic I bonds at Treasury Direct have been much easier to buy and redeem than physical I bonds. I didn't expect that to be the case, yet Treasury Direct has been easy to use. I will say that it did take several months to convert paper I bonds to TD. However, once they were in my TD holdings it has been simple to redeem them.
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Re: My experience cashing EE/IBonds at local bank

Post by Mel Lindauer »

I've experienced getting 1099s in two different ways.
1. The bank issued a 1099 at the same time I redeemed the I Bonds.
2. The bank issued a 1099 the following year at tax time.

And, FWIW, I've had no problems redeeming large numbers (30 at a time) of I Bonds at several banks and Credit Unions that I deal with (Chase excluded). I do try to make sure to make my appointment (or simply show up) at a time when the bank is normally not busy.

And, as a thank you for redeeming them, I'll try to buy a CD or deposit some of the proceeds into one of that bank's products, even if I could get a bit more buying something elsewhere.
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Re: My experience cashing EE/IBonds at local bank

Post by TBillT »

PNC had a 12-month account age requirement. So the problem I had was when we transferred from old existing PNC account to new estate account, we lost the needed account seniority to cash savings bonds ... so off to the USTreasury we had to go. If I had known setting up estate account meant loss of all prior account privilege's, then there was no need to stick with PNC for the estate account.
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Re: My experience cashing EE/IBonds at local bank

Post by bikesandbeers »

I have had fine luck with Wells Fargo over the last few years. First time I made an appointment but they told me just going to a teller is fine if it's only a handful.

They give both a receipt that has all the 1099 type info on it, but also issued a regular 1099 at the end of the year.
whiterabbit66
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Re: My experience cashing EE/IBonds at local bank

Post by whiterabbit66 »

IMHO make sure you leave the bank with the printed receipt showing the transaction. This receipt should clearly show the portion of interest per bond listed. The end of year 1099 will not show this information (if you get one at all) from your bank. BAC and WFC also don't always issue 1099's in my experience and often you will have to chase them up. They also cannot give you a full breakdown per bond after the fact if you don't get (and keep) the receipt/printout.
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Re: My experience cashing EE/IBonds at local bank

Post by Johm221122 »

First Horizon bank did mine about 6 years ago. Can't guarantee it will still be possible
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Re: My experience cashing EE/IBonds at local bank

Post by NYCaviator »

CletusCaddy wrote: Tue May 07, 2024 8:57 pm Would be helpful if we actually compiled a list of banks that do / don’t deposit savings bonds.

So far:

Do
Bank of America

Don’t
Chase
Does Chase not work with paper savings bonds anymore
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Mel Lindauer
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Re: My experience cashing EE/IBonds at local bank

Post by Mel Lindauer »

NYCaviator wrote: Wed May 08, 2024 11:31 am
CletusCaddy wrote: Tue May 07, 2024 8:57 pm Would be helpful if we actually compiled a list of banks that do / don’t deposit savings bonds.

So far:

Do
Bank of America

Don’t
Chase
Does Chase not work with paper savings bonds anymore
I was told they'd redeem a couple of hundred dollars worth for customers, but that's no help to me or most others.
Best Regards - Mel | | Semper Fi
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Re: My experience cashing EE/IBonds at local bank

Post by gavinsiu »

whiterabbit66 wrote: Wed May 08, 2024 6:31 am IMHO make sure you leave the bank with the printed receipt showing the transaction. This receipt should clearly show the portion of interest per bond listed. The end of year 1099 will not show this information (if you get one at all) from your bank. BAC and WFC also don't always issue 1099's in my experience and often you will have to chase them up. They also cannot give you a full breakdown per bond after the fact if you don't get (and keep) the receipt/printout.
Actually Wells Fargo will do this. About two or three years back, they would say that your receipt is your 1099-int. Last year, they also sent a year end 1099 which was a nice touch.
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Re: My experience cashing EE/IBonds at local bank

Post by Raybo »

The money hit my account today. So, it took a week from when I gave them to the bank to when I got the money for them.

This isn't as quick as redeeming those held at TreasuryDirect.com but a week turnaround isn't bad!
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Re: My experience cashing EE/IBonds at local bank

Post by Rocinante Rider »

Raybo wrote: Tue May 14, 2024 7:45 am The money hit my account today. So, it took a week from when I gave them to the bank to when I got the money for them.

This isn't as quick as redeeming those held at TreasuryDirect.com but a week turnaround isn't bad!
My paper EE bond redemptions always hit my account at TD Bank before I could get from the teller's window to my car. Even when I left a large number of bonds with the teller to redeem when they had more time, the deposit was available in my account before the end of the day. I'm not sure why your bank would take a week to credit your account.
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Re: My experience cashing EE/IBonds at local bank

Post by Nowizard »

Our account is at a CU, and they do not cash bonds.

Tim
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Re: My experience cashing EE/IBonds at local bank

Post by Mel Lindauer »

Nowizard wrote: Tue May 14, 2024 8:45 am Our account is at a CU, and they do not cash bonds.

Tim
I've found that it's wise to open an account and get established with a bank or two that redeem Savings Bonds. If you have two (I do), and one stops redeeming them, you still have another one to fall back on.
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