Savings Bond Redemption

If you have been holding on to your savings bond awaiting that day that it matures, you may want to know the process you need to endure in order to reclaim your money. Redeeming a savings bond isn't that difficult just a matter of knowing a few steps.

Ideally you should wait until you can cash the bonds without any penalty. Bonds do vary but typically they cannot be redeemed during the first year of their issue date. There could also be a small penalty if you redeem them before five years. Depending on the economy, interest rate and dollar values, sometimes the pay off will outweigh the penalties but you should consult a financial advisor before making any such decisions.

It is best to call the bank ahead of time before showing up with your bond. Most will cash it without any problem but they might require some identification that you ordinarily wouldn't carry. If the bond is for a large amount then making sure they have the cash available is a good idea. Failing to check may force you to wait a few days.

Generally your own bank, credit union or savings and loan that you have an account with will cash your bond without any problem. You may not even have to hold an account. Should you run into problems, the Federal Reserve Bank will always cash bonds. All you need to do is mail it in.

Remember that savings bonds are not transferable so you can only cash bonds that are in your name. Even if you purchased the bond for a child or relative, they are the ones that will have to cash the bond.

If you purchased your bond electronically then you have the privilege of cashing it in the same way. The funds will be sent to your savings account directly.

Cashing a savings bond is quite a straight forward process. By calling ahead and making sure that you have appropriate identification, you can have your money in a matter of minutes.