Can I Redeem My Savings Bonds Online?

by W D Adkins

    If you own savings bonds in electronic form through an account with TreasuryDirect.gov, you may redeem them online. You must wait at least one year after you purchase the bonds before redeeming them. However, you forfeit three months’ interest if you redeem them in less than five years. Paper savings bonds may not be redeemed online. You have to take the paper certificates to a bank or other financial institution that handles redemptions on behalf of the Treasury Department. You can use the Treasury Direct SmartExchange resource to convert paper bonds to electronic bonds. Once the bonds are in electronic form they may be redeemed online.

    Step 1

    Log on to your Treasury Direct account. Before you start the redemption process, make sure your bank account information is up-to-date. The system will look for a previously entered bank account unless you choose to place the bond payout into a Certificate of Indebtedness, a non interest-bearing security you may use to keep money on deposit with Treasury Direct until you are ready to invest it.

    Step 2

    Choose "ManageDirect" at the top of your account page and then select the bond redemption option. Select the type of savings bond or other security you want to redeem and submit your request.

    Step 3

    Choose which savings bonds you want to redeem from the list that appears. You may select up to 50 bonds at a time. If you choose only one bond, the system takes you to the Redemption Request page. You can redeem the entire bond or make a partial redemption of $25 or more. If you are redeeming more than one bond, a Multiple Redemption Request page appears. There is no partial redemption option when you redeem more than one savings bond at a time.

    Step 4

    Choose the bank account where you want the money sent from the drop-down menu. Alternatively, you may choose to deposit the money into a Certificate of Indebtedness. Submit your request to go to the review page. If everything is correct, confirm the redemption. A printable confirmation page appears. Treasury Direct electronically transfers the funds to the selected account within one or two business days.

    About the Author

    Based in Atlanta, Georgia, W D Adkins has been writing professionally since 2008. He writes about business, personal finance and careers. Adkins holds master's degrees in history and sociology from Georgia State University. He became a member of the Society of Professional Journalists in 2009.

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