U.S. Savings Bonds - 8 August 2022

Going through some old files, I found a cache of U.S. Savings Bonds that were issued in late 1979 into the early 1980s.  Savings Bonds were once a "thing" but are now rather obscure.  They were denominated in smaller amounts ($25-$50-$100) and often sold through monthly payroll deductions.  They are bonds backed by the full faith and credit of the U.S. government, so the purhaser does not need to worry about defaults or corporate bankruptcy.  As a consequence, the interest rates are not great, but neither are they as terrible as, say, a checking account at a commercial bank.  They have a defined date of maturity (10 years or so) and keep earning interest after that date - although the interest rate may drop post-maturity.  Some bonds are bought at face value and some are bought at a discount (e.g., half of the face value).  Today, Savings Bonds seem to have moved to an elecrtonic version, but these are old-fashioned paper bonds.

These bonds are old and long past maturity.  They would have matured before 2000, so the actual value of each bond today is far beyond the face value.  I checked the internet and found a page that describes how to redeem the bonds.  

Go to a bank.

Yep, there are a bunch of rules about paperwork that must be signed in the presence of a witness or a notary public.  

Many banks will decline Savings Bonds.

We visited three (3) banks before finding one that would redeem Savings Bonds.  One had certain designated offices that would redeem Bonds, but not the one we were standing in.  Another simply did not handle Bonds.  The third one would.

The banks require an account at the bank to redeem the Bonds.

We do not have an account at a local bank.  Gave it up years ago to consolidate our finances into a high-service brokerage account.  We have been doing all banking electronically for over a decade, but now we need a local account.

And there you have it.  To redeem your U.S. Savings Bonds, you need to have a local bank account and process the paperwork in the presence of a notary public or a designed bank official.

I am now opening an account at a local bank so that I can redeem my ancient Savings Bonds.

Picture of a rabbit because, well, why not?  Photo courtesy of Kathy Perko-Porter.