When can a child cash Savings Bonds?

Wednesday, February 23rd, 2005
Categorized as: Cashing in US Savings Bonds

I have been purchasing bonds for my grandchildren since they were born. The bonds are in their names and social security numbers. At what age can they start cashing them in?

Tom’s response

The bonds can be redeemed as soon as the bonds are a year old.

A child who is old enough to sign his or her name can go to a financial institution with an adult and sign the bonds. If a child isn’t old enough to sign, a custodial parent can sign for the child.

If the child is under 18 and has investment income over $1,600, the excess will have to be declared on the parent’s return and taxed at the parent’s tax rate. If older, the child can declare it on his or her own return.

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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:

11 Comments

On April 15th, 2010 Ramona said:

If I bought bonds for my child in her name and it has POD of my name can I cash the bond?

On April 16th, 2010 Tom Adams said:

Ramona – As the text above says, a custodial parent can sign for a child who owns a Savings Bond.

Who bought the bonds and who is named as POD aren’t relevant.

Tom Adams

On April 29th, 2010 George M. Thomas III said:

I am planning to start a savings bond program (EE) for my one 1 year old grandson to help him pay his college expenses. If he waits until the bond matures (20 yr) will he be taxed on the interest if he uses the bond for education only?
Thanks

On April 30th, 2010 Tom Adams said:

George – Yes, he will be taxed. The rules of the college education deduction are here.

Tom Adams

On May 8th, 2010 Lynne A.Champagne said:

I have a grandson who is 4 and I do not wish his mother to EVER get her hands on anything I save for him. Neither do I wish his father to be able to cash or get it either. How can I cover him if she takes him and runs with him?

On May 10th, 2010 Tom Adams said:

Lynne – Consider buying Savings Bonds registered with you and the grandson as co-owners.

Tom Adams

On May 19th, 2010 LISA LUTMAN said:

My ex husbands parents gave our children savings bonds through the years when they were minors with me as co owner. AFter the divorce several years later, the kids, both now adults are in need of the funds which are in their fathers safe in his home. He in not a co owner of the bonds. What can be done to get the kids what is theirs? (He has “power” issues, so talking it out doesn’t seem to help)

On May 20th, 2010 Karina said:

When my parents divorced my mother had custody of our bonds. However, now that I am 19, I want them. She has refused to give them to me and confessed to cashing them in and putting them in the stock market. When she cashed them in they had not reached full maturity. Now that the cash has been in the stock market, it has depeleted. Although, she was a co-owner, how do I get this money back?

On May 20th, 2010 Tom Adams said:

Lisa – I don’t have any solutions for you.

Karina – Either co-owner of a Ssvings Bond can cash it and use the money without the knowledge or permission of the other co-owner. Your mother was trying to do the right thing by putting the money in stocks – it’s what all the experts recommend. Unfortunately, the advice was wrong this time.

Tom Adams

On June 1st, 2010 Jay said:

Hi Tom, Hoping you can help solve my Dilemma. I have Savings Bonds bought for my 2 sons. They are in my 2 Sons names, but on a few of them, toward the bottom a few have my ex-wife’s name, and 1 says POD then her name. Am I able to cash these out, or do I have to involve her in this?Thanks for your Time, Jay

On June 1st, 2010 Tom Adams said:

Jay – If you are the custodial parent, then you can sign for your minor sons to redeem the bonds. Since your sons’ names are listed first on the bonds, you can do this without your ex-wife’s knowledge or permission.

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 Savings-Bond-Advisor.com. 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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