A paper savings bond is primarily used by cashing it for its entire value. Unlike some investments, you cannot cash in a portion of a paper savings bond; it must be redeemed for its full amount when you decide to use it.
Cashing Your Paper Savings Bond
When you are ready to redeem your paper savings bond, there are generally two main avenues available, each with specific considerations:
1. Cashing at a Bank
You may be able to cash your paper savings bond at many financial institutions, such as banks or credit unions.
- Key Points:
- Varying Policies: Banks have differing policies regarding savings bonds. They may have limits on the total value or number of bonds they will cash at one time.
- Not Guaranteed: Some banks may not offer savings bond cashing services at all. It's advisable to check with your bank beforehand.
- Requirements: You will typically need proper identification and potentially be a customer of the bank.
2. Cashing With the Issuer/Treasury
The entity that issued the savings bond (often the U.S. Treasury) or their designated agent provides a direct method for cashing bonds.
- Key Points:
- No Value Limit: According to the reference, when cashing "with us" (referring to the issuer/Treasury or their agent), there is no limit on the value or number of savings bonds you can cash at one time.
- Requirements Apply: The bonds must still meet the specific requirements for cashing, such as reaching their maturity date or minimum holding period (typically 12 months).
- Process: Cashing directly with the issuer often involves mailing the bonds with the required forms.
To effectively use your paper savings bond, determine its current value and whether it meets the minimum holding period requirements before attempting to cash it.
