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Old Savings Bonds - Didn't Think The Time Would Arrive
Old 07-01-2015, 04:39 PM   #1
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Old Savings Bonds - Didn't Think The Time Would Arrive

My homework project is to get my old paper savings bonds converted to electronic. They start maturing June of 2016.

Good old payroll deduction purchases from w*rk.
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Old 07-01-2015, 04:43 PM   #2
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I track mine using Savings Bond Wizard - it's free! https://www.treasurydirect.gov/indiv...bondwizard.htm
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Old 07-01-2015, 04:54 PM   #3
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The electronic conversion process on the website is cryptic but after the first one you kind of get the hang of it.
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Old 07-01-2015, 05:35 PM   #4
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I track mine using Savings Bond Wizard - it's free! https://www.treasurydirect.gov/indiv...bondwizard.htm
I've been using the Savings Bond Wizard also. But figure, since my bonds start maturing 6/2016, I really don't feel like going to a bank the old fashioned way to cash them in.
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Old 07-01-2015, 07:05 PM   #5
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Cashed my stack in last year. It was the only year I could get the education benefit. Went to three or four banks before I found one (Wells Fargo) that would just cash them in. I had tracked them in Savings Bond Wizard for many years. Took probably over and hour to get them cashed. Glad I don't have to track them any longer.
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Old 07-01-2015, 07:59 PM   #6
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Cashed my stack in last year. It was the only year I could get the education benefit. Went to three or four banks before I found one (Wells Fargo) that would just cash them in. I had tracked them in Savings Bond Wizard for many years. Took probably over and hour to get them cashed. Glad I don't have to track them any longer.
Did the other banks refuse to handle the bonds? Or what did they want you to do? I've got a lot of paper bonds that will incrementally start maturing in 2016

Actually, they've been a great investment over the last 10 years as all mine are paying 3-5%.
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Old 07-01-2015, 08:11 PM   #7
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Did the other banks refuse to handle the bonds? Or what did they want you to do? I've got a lot of paper bonds that will incrementally start maturing in 2016
Most banks will only cash them if you are an account holder. No different than you wanting to cash a check at a bank.

Legally, they are on the hook if you present savings bonds and they later find out that there is fraud or some other honest mistake or outright scam (such as, you previously told the Fed that they were "lost" and they reissued them to you, and you cashed in the newly issued ones). If you don't have an account with a bank, most people would want either cold, hard cash or a cashier's check. the bank has no easy recourse to get their money back if you cash in savings bonds that aren't valid.
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Old 07-01-2015, 11:22 PM   #8
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Did the other banks refuse to handle the bonds? Or what did they want you to do? I've got a lot of paper bonds that will incrementally start maturing in 2016

Actually, they've been a great investment over the last 10 years as all mine are paying 3-5%.
One bank wanted me to open an account. One credit union wouldn't cash them. Another credit union limited the amount to $1k. Wells Fargo cashed them all, over $6k. I was impressed enough to open an account after they were cashed. Since then, not so impressed with their constant use of my e-mail for advertising.

When I first started collecting the Savings Bonds, as I remember, you were supposed to be able to take them into any bank and get them cashed.
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Old 07-02-2015, 12:44 AM   #9
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One bank wanted me to open an account. One credit union wouldn't cash them. Another credit union limited the amount to $1k. Wells Fargo cashed them all, over $6k. I was impressed enough to open an account after they were cashed. Since then, not so impressed with their constant use of my e-mail for advertising.

When I first started collecting the Savings Bonds, as I remember, you were supposed to be able to take them into any bank and get them cashed.
I admire your perseverance.
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Old 07-02-2015, 11:13 AM   #10
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I track mine using Savings Bond Wizard - it's free! https://www.treasurydirect.gov/indiv...bondwizard.htm
Thanks for sharing that link , I didn't realize there was an on-line tool that could be downloaded. I have about a 2 inch stack of paper bonds that I need to evaluate, they're approx 20 yrs old.

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Old 07-02-2015, 11:35 AM   #11
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One bank wanted me to open an account. One credit union wouldn't cash them. Another credit union limited the amount to $1k. Wells Fargo cashed them all, over $6k. I was impressed enough to open an account after they were cashed. Since then, not so impressed with their constant use of my e-mail for advertising.

When I first started collecting the Savings Bonds, as I remember, you were supposed to be able to take them into any bank and get them cashed.
Thanks, I'll need to plan accordingly. I suspected that most banks would only cash them for customers, one of reason that I use a local brick and mortar bank for checking. They keep wanting me to talk to their "investment guy" but always beg off.
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Old 07-02-2015, 11:45 AM   #12
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I used to have a lot of paper bonds (from work) and I converted to electronic. Well worth the effort as cashing them in online is really easy.
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Old 07-02-2015, 03:30 PM   #13
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I also went through this with Treasury Direct. A bit of work to start, but glad I did it. I was buying paper bonds on my first job through weekly deductions during the 90s. Those bonds added up, and with decent rates still attached to them, I'm letting them ride, probably to maturity.

I recently found a lost bond in some papers. It was already 5 years past maturity. Duh-oh! Nice thing was it brought back memories because it was a gift.

Anyway, with an already established account at T.D., it was a simple process to send it in and a week later, it was a done deal, cashed in.
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Old 07-03-2015, 06:18 PM   #14
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Thanks, I'll need to plan accordingly. I suspected that most banks would only cash them for customers, one of reason that I use a local brick and mortar bank for checking. They keep wanting me to talk to their "investment guy" but always beg off.
Same thing here. DW just cashed in a bunch of old bonds from work last month, no issues, but we do have an account there. They often ask "Would you like to apply for a mortgage?" (House is paid off.)

Well, no. Can't blame 'em for trying though, that is the business they're in.
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Old 07-04-2015, 12:10 AM   #15
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We have a big wad of SBs. Almost all were via a payroll deduction plan. We did that to use them for the kids college educations... but when they became that age, my income was too high to use them for that purpose, so paid college out of current accounts.

The 4% return on them is nice these days! However, they are a tax liability hanging out there in the future, as the FIT on them will really add up. Ah well...
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Old 07-04-2015, 10:51 AM   #16
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We have a big wad of SBs. Almost all were via a payroll deduction plan. We did that to use them for the kids college educations... but when they became that age, my income was too high to use them for that purpose, so paid college out of current accounts.

The 4% return on them is nice these days! However, they are a tax liability hanging out there in the future, as the FIT on them will really add up. Ah well...
I'll be faced with the maturing of EE bonds at about the time RMDs kick in, it'll take some careful tax planning. Hopefully I can use them to cover educational expenses as I still have two High School age sons.

Something I learned this year, you can be exempt from paying taxes on the accrued interest on eligible EE and I bonds if the proceeds are used to fund a 529 account. So one could fund a 529 account for a grandchild and avoid being taxed on the bond interest, assuming the bonds and you qualify for the exemptions that year.
http://www.bankrate.com/finance/coll...-529-plan.aspx
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Old 07-04-2015, 01:34 PM   #17
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I spent the day inputting the serial numbers for my 44 savings bonds into Treasury Direct for future conversion.

That's enough for now. I'll do the proofreading another day.
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Old 07-04-2015, 01:36 PM   #18
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I'll be faced with the maturing of EE bonds at about the time RMDs kick in, it'll take some careful tax planning. Hopefully I can use them to cover educational expenses as I still have two High School age sons.

Something I learned this year, you can be exempt from paying taxes on the accrued interest on eligible EE and I bonds if the proceeds are used to fund a 529 account. So one could fund a 529 account for a grandchild and avoid being taxed on the bond interest, assuming the bonds and you qualify for the exemptions that year.
Can I Cash In Series EE Savings Bonds to Fund 529 Plan? | Bankrate.com
Also, the IRS does allow you to declare accumulated interest before cashing in. The only catch is, you are supposed to do that on ALL savings bonds you own. Also, once you start declaring income each year on accumulated interest, you have to keep doing that until you cash it in. (the first year you declare accumulated interest, you declare all interest earned from date of purchase up to Dec 31 of that tax year).

So if you (or anyone else) isn't using the education exemption route, declaring accumulated interest could be advantageous for tax-timing.
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Old 07-06-2015, 11:54 AM   #19
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Done deal. I created the manifest for that TreasuryDirect site and shipped off my paper bonds today for converting. My eyes aren't that bad as I thought as ot of 44 serial numbers, I only made one typo that needed correcting.

When the bonds start maturing in 2016, they should now be in cruise control.
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Old 07-06-2015, 12:03 PM   #20
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I've got 2 or 3 bonds, gifts I guess from a long time ago. I think I'll use the tool to track them, or cash them in if they've matured.

I very specifically never did the payroll deduction path. Also never did the United Way payroll deduction thing. They pushed both at us so hard at work that my genetically directed contrariness kicked in and I just refused. It really pissed them (Megacorp management) off royally, since they couldn't claim 100% participation. It even got commented on regularly in my job evaluations. But I figured anything they were for so slavishly wasn't a good idea. I bought my bonds other ways, and gave to the charities of my choice.
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