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You can convert your paper bonds to electronic bonds through a program called SmartExchange. After you gather your paper bonds and sort them by registration, you can set up an account online at www.treasurydirect.gov/RS/UN-AccountCreate.do. Once you open your online account, mail your paper bonds to the U.S. Treasury.
Open a TreasuryDirect account, if you don't already have one. Once your TreasuryDirect account is set up, login, go to ManageDirectSM and click on the link Establish a Conversion Linked Account which appears in the Manage My Linked Accounts menu. Click on the button to create your Conversion Linked Account.
You can cash up to $1,000 worth of savings bonds at any bank.
For example, a series EE bond that has a face value of $50 can be bought for $25. A series EE bond will reach full face value after 20 years and will stop earning interest after 30 years.
Standard Taxation of Savings Bonds. Savings bonds are free from state and local taxes. Roth IRA. Education Tax Exclusion. Donations.
There should be a signature page you need to sign, but again do not sign the back of your bond(s). Mail the document along with the unsigned bond(s) to the Treasury Department at the address below and wait for three-to-four weeks for the conversion to take place.
Log in to TreasuryDirect and follow the directions there. The cash amount can be credited to your checking or savings account within two business days of the redemption date. You can cash paper EE and E bonds at most local financial institutions.
Selling Treasury Bonds. You can hold Treasury bonds until they mature or sell them before they mature. To sell a Treasury bond held in TreasuryDirect or Legacy Treasury Direct, first transfer the bond to a bank, broker, or dealer, then ask the bank, broker, or dealer to sell it for you.
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