You’ve crunched the numbers using a savings bond calculator and realized you actually have money in an HH Bond you bought a while ago. The next question is, how do you get that money? You’ll probably head to your nearest bank, which can provide FS Form 1522 and even mail it in for you, but there are a few things you’ll need to know before you redeem your HH Bond.
Instead of mailing in bonds yourself, you will likely be able to take them to your nearest bank and have them process these documents for you.
Where to Cash HH Bonds
After you’ve determined the value of your HH Bonds using a savings bond calculator, your first stop should be a financial institution. At one time, lenders could cash out savings bonds but that’s no longer the case. They can, however, mail your bonds in for payment, which will be direct deposited into your account.
Your bank will provide FS Form 1522, which you’ll use to cash in your bonds. You’ll supply all the requested information and hand it over to your bank, which will then submit it on your behalf. It’s important to note that you don’t have to go through a bank to mail your forms, although you will need to sign them in the presence of a certifying officer at the bank. You can access FS Form 1522 online, get it signed at the bank, then mail it to Treasury Retail Securities Site, P.O. Box 2186, Minneapolis, MN 55480-2186.
Determining Value of HH Bonds
Although HH Bonds are no longer sold, there are still quite a few people who have money in bonds they’ve held for a while. There aren’t any savings bond calculator tools online, but you can easily determine the value of any HH Bonds you hold. The terms of an HH Bond stipulate that you earn interest every six months, so you should have been receiving payments over the years.
However, once your bond matures, you’re eligible to mail it in and get face value for it. The face value is listed on the bond itself. If it says $500, you’ll get $500 deposited in your account once the Treasury Department receives your paperwork, processes it and approves the payment to be sent to you. If you’ve purchased the bond from someone else or found it, unfortunately, you can’t redeem it as HH Bonds can’t be transferred, sold or traded.
Following Up if No Response
If you’ve mailed off your paperwork and gotten no response, double-check with your financial institution to make sure there isn’t an error on their end. You should also verify that you gave the correct account numbers on the form you submitted. Make sure you’ve allowed sufficient time for the payment to go through the approval process.
If you feel that the payment is missing, the Treasury Department invites you to write in asking about the payment. Send it to Treasury Retail Securities Site, P.O. Box 2186, Minneapolis, MN 55480-2186. Include the name on the bond, as well as the name on the bank account, the Social Security number that goes with both, the date any missing interest payments were due and the amount of the payment due.
Redeeming Bonds for an Estate
Although HH Bonds don’t allow transfers, there is one notable exception. If an HH Bond owner dies before redeeming a bond, that person’s survivors may be able to cash them in. Ideally, a survivor will be named on the bond, which merely will require that survivor to go to a financial institution and show proper identification, as well as proof that the bondholder is deceased.
If no survivor is named, things get a little more complicated. You’ll need to complete FS Form 5336, Disposition of Treasury Securities Belonging to a Decedent’s Estate Being Settled Without Administration. You’ll have to sign the form in front of a certifying official, usually available at a bank. A notary is not sufficient for this.
- Treasury Direct: Redeeming (Cashing) Series HH Savings Bonds
- Treasury Direct: Special Form of Request for Payment of United States Savings and Retirement Securities Where Use of a Detached Request Is Authorized
- Treasury Direct: Direct Deposit for Series HH Savings Bond Interest
- Treasury Direct: Death of a Savings Bond Owner
- Treasury Direct: Disposition of Treasury Securities Belonging to a Decedent’s Estate Being Settled Without Administration
- The Treasury waits until the next month to cash HH bonds that arrive for redemption a month before interest is due.
- Call the Minneapolis Treasury Retail Securities site at 800-553-2663 if your local bank can't help cash your HH bonds.
- For federal tax purposes, report the twice-yearly interest on HH bonds in the tax year in which it's earned.
- The value of HH bonds received in exchange for EE/E bonds often includes deferred interest. You must pay federal income tax on this amount when you cash the bonds. The Treasury will send a 1099-INT form showing the amount to report on your income taxes.
Stephanie Faris has written about finance for entrepreneurs and marketing firms since 2013. She spent nearly a year as a ghostwriter for a credit card processing service and has ghostwritten about finance for numerous marketing firms and entrepreneurs. Her work has appeared on The Motley Fool, MoneyGeek, Ecommerce Insiders, GoBankingRates, and ThriveBy30.