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Cashing in savings bonds

polvoprismboy 1,607 358 March 10, 2012 at 04:06 PM
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So I have about $3,300 in savings bonds and I would like to cash them in. However, I've read that I need to be an active customer of 6 months at a bank to cash more than $1000 in savings bonds. Here's my questions:

1) Does it have to be a checking account? Or could I go to Bank of America and cash in my savings bonds with my 2 year old BoA credit card?

2) If it is a checking account, is the 6 month rule strictly enforced? I've been a member of Chase's checking account for 5 months.

Thanks

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#2
http://www.treasurydirect.gov/ind...redeem.htm


Think before you cash in those bonds
If your Series E bonds were issued before May 1, 1995, they're earning either 4 percent or 6 percent a year. If you're lucky enough to be holding the 6 percent variety, you may want to hang on to them; that kind of interest on a tax-deferred, no-risk bond is hard to come by today.
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#3
The majority of my bonds were earning 4%, but have now went down to 2%. And I want to cash them in because I'm currently in school and I can write them off on my taxes.
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#4
You just reminded me I have a $50 EE bond from 1982 (paper carrier of the month award - lol). It fully matures next year so I need to cash it in. Worth around $140.
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E finita la cuccagna

Liberals want you to think like them, Conservatives just want you to think!
#5
Unless I've missed something I think the 6 month/$1000 limit is the rules a bank makes just to protect themselves against possibly forgery, similar to how they might have restrictions for cashing large checks. I say just call up, or walk in to your bank and see if they'll let you, worse they can say is no. Otherwise if you can break it up below the limits that might work.

Is there any pressing reason to cash them out immediately? Even 2% is still a good interest rate nowadays. So unless you're going to earn better with them, why not wait until December, same tax year, just a longer time to collect interest.
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#6
I'm in TX, and Chase bank cashed my series EE savings bonds a couple months ago. I don't have an account with them, and they didn't charge a fee. They even gave me a printout of my earning history.
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#7
Quote from polvoprismboy View Post :
The majority of my bonds were earning 4%, but have now went down to 2%. And I want to cash them in because I'm currently in school and I can write them off on my taxes.
You need to research bonds used for education. Doubt they are the write off you are imagining.

Unless you really need the money, I would hold off.
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