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Hi folks Dave Waring here again with learn bonds calm, and today we're going to talk about how to cash in savings bonds you cannot cash in savings bonds that are less than one year old after holding a savings bond for more than one year you can cash it in at any time however there are some additional factors to consider first if you cash in your savings bond within the first five years of purchase you will have to forego the previous three months interest payments second savings bonds fully mature in 30 years meaning they stop earning interest at that point third you can cash in a savings bond at any time after the 30-year maturity date, but you do not earn any additional interest when holding for longer than thirty years in order to cash in a savings bond you must be the owner co-owner or be the legal guardian of either the co-owner of the owner you can also cash in a savings bond if you have power of attorney over the owner or the co-owner if the owner of the bond has died then the bond goes to the beneficiary listed when the bond was purchased if there is not a beneficiary listed the bond goes to the estate of the deceased owner the primary owner in Cohen are listed have equal rights over the bond meaning the co-owner can redeem the savings bond without the owner's consent and vice-versa with this in mind be sure to take careful consideration over whom you list as your co-owner there are two ways that you can cash in a savings bond electronically through Treasury direct or through a local participating bank however it's unclear how many banks will provide savings bond redemption services now that the government has stopped issuing paper savings bonds you can convert paper I and II bonds into electronic bonds through the treasury smart exchange program the first step to using this program is to open an account with Treasury direct com, and I've included a link where you can do that below this video I've also included a link where you can find a list of detailed instructions on converting paper savings bonds to electronic bonds when using Treasury Direct you can cash in an unlimited number of savings bonds for an unlimited amount of money the funds will arrive in your checking or savings account within one business day of making the request when you cash in savings bonds with a bank the maximum cash amount that you can immediately get is one thousand dollars when you cash in a savings bond you will be issued a 1099 — int form on any interest earned make sure you file the form with your taxes as the government already has a copy and if you do not file this form then the IRS will withhold your federal return that being said double taxation of savings bond income happens quite often if you elect it to report the interest income each year the 1099 int form will not be reduced by the amount of interest income that was reported in previous years it's your responsibility to keep track of this information and properly file your return that's our lesson...
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