Treasury Direct questions

[Texas Proud]

So, I have some savings bonds that I bought 30+ years ago... plus I got a few larger ones from my mom when she passed that mature starting next month..


I took mine into the bank today and cashed them... they are $200 face... I asked about my mom's and was told their max is a $200 face bond... now, I cashed in 13 of those today so got some good money but now have to cash the big one...


It looks like opening a treasury direct account and moving all of mine into it is an option... I was wondering if someone else has cashed theirs in another way...


Also, can you request that they send you the money when they mature or do you have to move it yourself?


I know very little about a treasury direct account.

 

[audreyh1]

General Treasury Direct works by transferring funds to and from a bank account. You may have to initiate a transfer after maturity. I have only bought IBonds online and none have matured yet but I’ve redeemed a few.

 

[2HOTinPHX]

This link might be helpful.

https://www.treasurydirect.gov/savings-bonds/cashing-a-bond/

We ran into an issue trying to cash some old I-bonds. Banks are apparently only allowed to cash I Bonds up to 1,000 in value.

From above link:

With Treasurydirect.gov:

Get FS Form 1522.
Fill it out.
Get your signature certified, if necessary.
(If the value of the bond(s) you are cashing is more than $1,000, you must have your signature certified. See FS Form 1522 for more about the signature requirements.)
Send the form and the bonds to us at the address on FS Form 1522.

Hope that helps.

 

[RE2Boys]

This link might be helpful.

https://www.treasurydirect.gov/savings-bonds/cashing-a-bond/

We ran into an issue trying to cash some old I-bonds. Banks are apparently only allowed to cash I Bonds up to 1,000 in value.

From above link:

With Treasurydirect.gov:

Get FS Form 1522.
Fill it out.
Get your signature certified, if necessary.
(If the value of the bond(s) you are cashing is more than $1,000, you must have your signature certified. See FS Form 1522 for more about the signature requirements.)
Send the form and the bonds to us at the address on FS Form 1522.

Hope that helps.

Love this forum, often makes life easier. I have cashed a lot of savings bonds over the last three years, they were left to me by my parents and had reaced maturity (hurt reporting 30 years of interest), but I never had any problem cashing them at the local credit union. But I don't remember if any single bond had a value over $1000.

But I have many I bonds purchased in 2001 and 2003 that I'm sure each will be over $1000. Need to add this form to my instructions to my wife in case I'm not around in 2033!

 

[mystang52]

Treasury Direct makes cashing Savings Bonds very easy. Obviously, first you have to have a TD account! If you have paper bonds, you can convert them to electronic, which are then registered on TD. Start to finish, converting paper bonds to electronic takes a while. Way back when I did it, it was only a couple of weeks. But I think I read that it now can take 4 (more?) weeks or so.
Bonds that have reached maturity, that are in TD, automatically get transferred to your "C of I" account within TD, earning no interest. You can buy new Bonds with that C of I, or of course cash it in. Cashing in other Bonds is a very simple transaction, and transfers to your previously registered bank account in one or two days.
Helpful hint: for Bonds that have not matured, do not cash them in until their yearly anniversary, or the yearly + 6 month anniversary, so you get the most recent posted interest.

 

[Texas Proud]

This link might be helpful.

https://www.treasurydirect.gov/savings-bonds/cashing-a-bond/

We ran into an issue trying to cash some old I-bonds. Banks are apparently only allowed to cash I Bonds up to 1,000 in value.

From above link:

With Treasurydirect.gov:

Get FS Form 1522.
Fill it out.
Get your signature certified, if necessary.
(If the value of the bond(s) you are cashing is more than $1,000, you must have your signature certified. See FS Form 1522 for more about the signature requirements.)
Send the form and the bonds to us at the address on FS Form 1522.

Hope that helps.

Thanks.... I saw this as an option.... not sure what I will do...


I can cash all of my small ones at the bank but have 3 larges ones that mature each year... trying to decide what is the path of least resistance...


Plus, want to inform my 5 siblings who have the same problem

 

[Finance Dave]

Just be sure that cashing them in doesn't affect something unintended...such as income for determining ACA subsidy or IIRMA. If you have a lot, could be an issue.

 

[Texas Proud]

Just be sure that cashing them in doesn't affect something unintended...such as income for determining ACA subsidy or IIRMA. If you have a lot, could be an issue.

Thanks.... I do not have that much no matter what... less than $30K total over 3 years maturity...


I am cashing them in to get the benefit of paying for college...

 

[JoeWras]

I deposited all my paper savings bonds into TD years ago. I liked having the capability to easily redeem them at will, on my own schedule since I had 50 bonds or so. If I only had a handful, I'd do it at my bank or credit union.

Things to note:
- The process is a bit nerve-wracking since you send these off in the mail and TD may take weeks to process them. It was bad during the pandemic but I think they've gotten caught up now.
- You create a special "linked account" that is only for deposited bonds. This links to your main TD account. So, to hold converted bonds, you actually have two TD accounts.
- If you deposit a mature bond, TD will immediately redeem it. You have no choice.
- When bonds in your account mature, TD automatically redeems them. You have no choice.
- TD shows the actual value once in your account. This is helpful.
- Redemptions go to your C&I account. It is easy to transfer to your bank from C&I. But you must take action to do this transfer. It is not automatic.

 

[big-papa]

I deposited all my paper savings bonds into TD years ago. I liked having the capability to easily redeem them at will, on my own schedule since I had 50 bonds or so. If I only had a handful, I'd do it at my bank or credit union.

Things to note:
- The process is a bit nerve-wracking since you send these off in the mail and TD may take weeks to process them. It was bad during the pandemic but I think they've gotten caught up now.
- You create a special "linked account" that is only for deposited bonds. This links to your main TD account. So, to hold converted bonds, you actually have two TD accounts.
- If you deposit a mature bond, TD will immediately redeem it. You have no choice.
- When bonds in your account mature, TD automatically redeems them. You have no choice.
- TD shows the actual value once in your account. This is helpful.
- Redemptions go to your C&I account. It is easy to transfer to your bank from C&I. But you must take action to do this transfer. It is not automatic.

You can move the converted bonds from your linked account to your main TD account so that everything is in one place. We do this every year.

Cheers.