How do you cash in bonds that have matured?

Once you’ve confirmed that your savings bonds have indeed matured, you should cash them in. There are two ways to redeem a paper savings bond: cash it in at a local financial institution, or mail it to the Treasury Department.

How do I redeem a mature savings bond?

How do I cash my EE and E bonds? Log in to TreasuryDirect and follow the directions there. The cash amount can be credited to your checking or savings account within two business days of the redemption date. You can cash paper EE and E bonds at most local financial institutions.

Are HH bonds taxable when cashed?

Yes, you must report your interest payments on HH bonds as interest income on your federal income tax return each year. This interest isn’t subject to state or local income taxes.

What happens when a savings bond reaches maturity?

When a savings bond matures, you get the principal amount plus all of the accrued interest. After the maturity date the bond stops earning interest. If you own paper savings bonds, you must present them at a bank or other financial institution for payment.

Can EE bonds be converted to HH bonds?

You can’t buy an HH bond. You can only convert E or EE bonds that you’ve held for one year and that are worth in total at least $500. HH bonds became a lot less attractive 18 months ago, when the government lowered the interest rate paid to 1.5 percent from 4 percent.

Can HH bonds be redeemed before maturity?

HH bonds earn interest for up to 20 years. Therefore, it is wise to cash an HH bond shortly after its interest-paying time. If you send your HH bond in for redemption so that the bond is received in the month before interest is due, we will hold your bond until the following month.

What is my Series HH bond worth?

What is my HH bond worth? An HH bond is worth its face value. If the bond says $500, it was bought for $500 and is now worth $500. Note: If you find a savings bond that belongs to someone else or buy a savings bond on an online auction site, you cannot cash it.

Do you have to pay taxes on matured savings bonds?

Owners can wait to pay the taxes when they cash in the bond, when the bond matures or when they relinquish the bond to another owner. Alternatively, they may pay the taxes yearly as interest accrues. 1 Most owners choose to defer the taxes until they redeem the bond.

Do you pay taxes on matured savings bonds?

Do savings bonds continue to grow after maturity?

Savings bonds are sold at a discount and do not pay regular interest. Instead, as they mature, they increase in value until they reach full face value at maturity. The time to maturity for savings bonds will depend on which series issue is owned.

What happens when a Series HH bond is redeemed?

Redeeming the Series HH bonds after maturity should only result in the deferred interest being taxable income. The deferred interest is taxable income to the recipient (beneficiary in this case) in the year that the Series HH bond is redeemed and will be reported on a Form 1099-INT issued to that recipient.

When do I redeem my HH savings bond?

If you send your HH bond in for redemption so that the bond is received in the month before interest is due, we will hold your bond until the following month.

When does a Series HH savings bond mature?

Series HH bonds mature 20 years after the issue date. If the series name is anything else, then it’s probably from an outdated series and has matured — you can look up the series name on the Treasury Direct website to confirm. Image source: Getty Images.

When do you get interest on a HH bond?

(It made money for you by earning interest every six months up to its final maturity date.) An HH bond’s face value may include deferred (postponed) interest from an earlier bond. If the HH bond carries deferred interest, you will receive that interest as part of its face value when you cash it.