Which of our Series I Savings Bonds should we redeem?

Friday, August 26th, 2005
Categorized as: Cashing in US Savings BondsSeries I US Savings Bonds

We need some advice on cashing in Series I bonds. We are purchasing a new house and we need some cash. We have approximately $30,000.00 in I bonds and we would like to cash in about $8,000.00.

Tom’s response

Each Series I Savings Bond has its own base rate, which is fixed for the life of the bond at issue and varies from 1.0% to 3.6%. Consequently, some Series I Bonds pay a lot more interest than others, so you need to be careful about which ones you redeem.

My book, Savings Bond Advisor, gives every issue of I bond an Alert Recommendation, which is a letter grade similar to your kid’s report card, that can help you decide which I bonds to redeem.

The ones you redeem must be at least one year old. You forego the last three months interest on any that aren’t at least five years old – this amount has already been deducted from the bond redemption values displayed by our calculator.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

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June 1, 2010

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Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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