How to Redeem Savings Bonds
Kiplinger's Personal Finance|September 2023
Whether you bought savings bonds during inflation’s peak last year or have older bonds collecting dust, take these steps to cash them in.
ELLA VINCENT
How to Redeem Savings Bonds

BASICS 

THANKS to rising in­ flation, Series I savings bonds have enjoyed a boom in popularity. I bonds issued from May 2022 through October 2022 earned a compos­ ite rate of 9.62% for the first six months, which prompted inves­ tors to stash more than $1 billion in I bonds in October alone. I bonds issued from May 2023 through October 2023 pay a com­ posite interest rate of 4.3% dur­ ing the first six months—a signifi­ cant drop but still an attractive return for a no­risk investment.

Although savings bonds can earn interest for up to 30 years, you may want to redeem them earlier. You can cash in I bonds, as well as EE bonds (which pay a fixed 2.5% rate for bonds is­ sued from May through Octo­ ber 2023), after you’ve owned them for a year. But if you re­ deem bonds within five years, you’ll lose the last three months of interest. Here are the steps you need to take if you’re ready to cash in your savings bonds.

This story is from the September 2023 edition of Kiplinger's Personal Finance.

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This story is from the September 2023 edition of Kiplinger's Personal Finance.

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