The final authority on Savings Bond questions

Friday, August 18th, 2006
Categorized as: Savings Bond FAQ

Some of our readers discussing last week’s post TreasuryDirect enhances security features used the Code of Federal Regulations as the source of their information.

Indeed, all the regulations about Savings Bonds are written down in a readable but detailed format that government agencies can use to document their rules.

Moreover, the Treasury has a page on, Code of Federal Regulations for Savings Bonds and other Treasury securities, from which you can download the rules regulating specific Treasury securities.

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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:


On March 6th, 2010 michelle said:

I have 5 savings bonds that I purchased for my son when he was younger. I am listed as POD but I want to cash them in now. My son now lives with his father several states away and is 17 years old. I am still his primary legal custodian. Can I cash them in?

On March 8th, 2010 Tom Adams said:

Michelle – You would have to take your son with you to demonstrate that he’s a minor and you’re the custodial parent.

Tom Adams

On March 9th, 2010 Paula Mathes said:

I purchased a savings bond for my granddaughter in 1993 how can she cash this bond?

On March 10th, 2010 Tom Adams said:

Paula – assuming you put your granddaughter’s name on the bond as either the owner or the co-owner, then the info you’re looking for is here.

If only your name is on the bond, then it belongs to you, not her, and you’ll have to cash it, hold back what you need for income taxes, and give her what’s left.

Tom Adams

On March 12th, 2010 Suzan said:

My now ex-husband had purchased EE savings bonds via payroll deductions while he was serving in the military to pay for our son’s education. With the divorce pending we came to an agreement, that he would cash these bonds and give the money + interest earned to me to reinvest elsewhere, since I would leave the US shortly (w.the child after the divorce). My son was a minor (14 yrs. old) when the redemption took place and never signed anything. Not too long after I had returned to my home country, my son received a form 1099-INT showing taxable interest. If I remember correctly, the bonds said something about POD, but I can’t recall whether it pertained to the purchaser or beneficiary.

Is my child liable to pay taxes on the interest although he had no idea what had occurred??

On March 16th, 2010 Tom Adams said:

Suzan – Someone has to pay the income tax on the interest the bonds earned. Since the child is a minor, the income probably rolls up to the custodial parent, but you should consult a tax advisor to be sure.

Tom Adams

On April 14th, 2010 Judith said:

My Father has numerous bonds. He is talking about cashing them in so we kids won’t have to deal with them after his death. What are the laws on cashing in bonds? If we inherit the bonds do we still have to pay taxes on the interest on the bonds or are they covered as inheritece and are not taxed?

On April 14th, 2010 Tom Adams said:

Judith – Whoever inherits the bonds still has to pay income tax on all the interest the bonds have ever earned. Just cashing them all in, however, is probably not the best course of action either. I suggest you or your father (or both) spend a weekend reading my book, then you’ll understand your options and what will work best for you.

Tom Adams

On April 22nd, 2010 Cheryl said:

My father purchased savings for me when I was a child and for my daughter when she was born. He had the deducted from his payroll. He is now deceased and we cannot find the bonds. How do I find out how claim them? I have his ss# and name and addresses at the time of purchase.

On April 22nd, 2010 Tom Adams said:

Cheryl – the information you’re looking for is here.

Tom Adams

On April 26th, 2010 Judy White said:

I was the secondary co-owner on EE and HH bonds. The primary owner (my Dad) died and the bonds were switched to my name only. I now wish to name co-owners (siblings) to distribute them equally. Once I do this and they cash them with their social security #, will they be solely responsible for the taxes? I ask because when it was my Dad and I, and he, as primary coowner, had put all the money into the bonds, the IRS says even if I cashed them he got the tax liability because he had put up all the original money.

On April 27th, 2010 Tom Adams said:

Judy – as a practical matter, whoever cashes the Savings Bond gets the 1099-INT reporting the interest to the IRS. Because the IRS examples all use situations where one co-owner’s money was used to buy the bond, with no inheritance examples, it’s not clear whether the IRS would consider you the principal owner (and thus responsible for the taxes) or not.

Tom Adams

Comments Closed

June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on I will contine to update the main articles on this site, but not the comments.

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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