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The Bureau of the Public Debt of
the U.S. Department of the Treasury has placed a large amount of information
about matters dealing with savings bonds on its web site,
United States Savings
Bonds. You may also answer most of your questions about bonds in a low-tech
fashion by talking to an employee at a local financial institution or at your
company’s payroll-deduction office.
For
your convenience, we’ve identified some of the most frequently-asked
questions about savings bonds and provided direct links to the appropriate site
where you will find the answers.
Q. Where
can I purchase savings bonds?
A. The simple
answer is at most financial institutions (banks, credit unions, savings and
loans) or through a payroll savings plan. For the details, go to
Where You Can
Purchase Savings Bonds. Q. What are some of the differences between these types of
savings bonds?
A. Bonds differ
primarily in interest payments and value, denominations, and purchase price.
For more information about all types of bonds, including many that are no
longer issued, visit:
All About Types of
Savings Bonds. Q. Who may own bonds and how can they be registered?
A. U.S. citizens
and most permanent U.S. residents qualify to own bonds and may register the
ownership as single, co-ownership, or beneficiary. For more information about
owning and the options for registering savings bonds, visit
Ownership
Options. Q. How
long will my bonds earn interest?
A. Depending on
the type of bond, they earn interest for as long as 20 or 30 years. If a
savings bond is no longer earning interest, you should redeem it (cash it in).
For more information about the maturity of savings bonds, visit:
When Your Savings
Bonds Stop Earning Interest. Q. How do I and when should I cash my savings bond?
A. In general, go
to a local financial institution after a minimum period. For more information
on cashing savings bonds and the best time to cash savings bonds, see
When Your Savings
Bonds Increase in Value or
The Best Time to Cash
Your Savings Bonds . You may also want to take a look at questions about
tax liability in Frequently Asked
Questions (FAQ) About Taxes and Savings Bonds.
Q. How do I learn how much
interest my savings bond has earned?
A. You can go to
the Bureau of the Public Debt’s
Bond Earnings
Report for a table of current values of $100 Series E and EE
bonds.
You may use the
On-Line Bond Calculator from the
Federal Reserve Bank of New York to calculate the value of individual
bonds.
You may also download and use the
Bureau of the Public Debt’s
Savings Bond
Wizard, a Windows application you can use to calculate interest and keep
track of all of your bonds. Q. How do I purchase savings bonds for education?
A. You may be able
to completely or partially exclude from Federal income taxes some interest from
bonds when you use the interest to pay for higher education. To see whether
you’re qualified, see
All About Savings
Bonds for Education. Q. How can I give a savings bond as a gift?
A. Check for the
details at most local financial institutions (such as banks or credit unions).
You may use your Social Security Number if you don’t know the
recipient’s without incurring a tax liability. Check the details at
All About Savings
Bonds as Gifts. Q. How do I recover a lost, stolen, or destroyed savings
bond?
A. The procedure
depends on whether the bond was lost before or after you received it and
whether you know the serial number. You may have to contact the
Federal Reserve
Bank that serves your area. For the details on these procedures, take a
look at All About
Lost, Stolen, or Destroyed Savings Bonds. Q. How do I exchange Series EE bonds
for Series HH bonds?
A. Although the
transaction will be completed by the
Federal Reserve
Bank for your area, you should be able to fill out the paperwork at a local
financial institution. Q.
How is the interest earned from savings bonds
taxed?
A. In general,
interest earned from savings bonds is subject to Federal income tax, but not to
State or local taxes. Start with
All About Taxes on
Savings Bonds to be connected to full discussions and
FAQ’s. Q. How
can I use savings bonds to prepare for retirement?
A. Because you are
likely to earn less and are therefore be subject to lower income tax rates
after you have retired, you may want to consider waiting until then to cash
your Series EE Bonds. For other information about an investment strategy that
involves Series EE and Series HH bonds, go to
All About Savings
Bonds for Retirement. Q. How do I cash a bond when the bond owner has died?
A. If a co-owner
or beneficiary is named on the bond, then that person is the new owner. New
owners can either redeem the bond or have it reissued in their name.
If there is no co-owner or
beneficiary, then the bond becomes a part of the deceased person’s estate.
The court-appointed representative can cash those bonds.
For more information about what to
do when the owner of a bond is deceased, see
What To Do When a
Bond Owner Has Died. Q. How do I make a correction to a name on a bond?
A. You should
complete a form "PD F 4000" and send it to the
Federal Reserve
Bank that handles savings bond transactions in your area. The form is
available from the Bureau of the Public Debt
forms ordering
system. Q. How do I transfer a bond to make the beneficiary become the
new owner?
A. You may
complete a form "PD F 3360" and send it to the
Federal Reserve
Bank that handles savings bond transactions in your area. The form is
available from the Bureau of Public Debt
forms ordering
system. The previous owner is liable for taxes on any interest earned
before the bond was transferred.
If the beneficiary is changed to a
co-owner instead, then there is no tax liability for the original owner if the
new co-owner cashes the bond. Form "PD F 4000" should be used for this change.
The form is also available from the
forms ordering
system.
Reviewed:
May 21, 2004
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