Whose signature is needed to redeem co-owner savings bonds?
Wednesday, December 8th, 2004
Categorized as: Cashing in US Savings Bonds
Over the years we have purchased Series E/EE bonds. The bonds have been purchased on a co-owner basis with our grandchildren as co-owners. If we redeem them will our minor grandchildren need to sign them as well?
Tom’s response
Either the owner or co-owner of a savings bond can cash it without the signature of the other. You should have no problem cashing them without the signatures of your grandchildren.
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Tom Adams
If the bond has two names and there is the word “or” in front of the second name, does that mean we are coowners.
If we are coowners, according to the Federal Reserve 800 #, they told me I needed the second parties signature to reissue the bond and have my husband listed as POD/beneficiary. Is that correct?
Linda Skarupa
Linda - that is correct. OR between the names means you are co-owners.
A Savings Bond can only have a co-owner or a beneficiary, not both, so to make your husband the beneficiary you’d have to remove the co-owner.
With paper Savings Bonds, removing a co-owner requires the signature of the co-owner. If the co-owner being removed put up the money to buy the bond, removing that person from the registration will create a taxable event for that person - he or she will owe tax on the interest earned by the bond.
If you’re going to create a taxable event anyhow, it can make sense to just cash the bonds and buy new ones, although it depends on how many dollars worth of bonds you have. My book goes into additional detail on this.
I have some bonds that has my dad’s name first then it says or (my name). Can I cash these without his signature plus whose social security number does it go against. My bank has said if I sign them it will go against mine.
Hi Valene - Yes, you can cash the bonds without your dad’s signature. The 1099-INT will be issued using the Social Security Number of the person who cashes the bonds.
However, the IRS says the taxes are actually owned by the Savings Bond’s “principal owner,” which the IRS defines as the person who put up the money for the bond or who inherited it. Moving the income from one tax payer to another is covered in my book.
Tom Adams
My grandmother took out two differnet bonds for me when I was young. They are both in my maiden name. Will I still be able to cash them now that I am married?
Lori - yes, you can cash them by providing some evidence on your maiden name, like a birth certificate or marriage license.
Tom Adams
Hi,
My Mom bought savings bonds for my kids many years ago. Some say her name or my kids names, and some say her name pod my kids names. Does pod mean payable on death? Payable on demand? What difference does it make for cashing them. My oldest is going to college in the fall and we want to get these into her account.
Thank you,
Rhonda
Rhonda - POD means “payable on death” - those bonds belong to your mother until she dies, not to your kids. More info here.
Tom Adams
My savings bonds were previously stamped by a bank.
I changed my mind about cashing them at the time, but I would like to cash them in now. Can another bank accepted them now for cashing if they are stamped by another financial institution?
Christine - taking them to a bank will be no end of hassle. Why don’t you just send them in as described here.
Tom Adams
Hi, my Grandma left me savings bonds and it is about to be my 18th birthday soon, so i was wondering if i need my mother to come with me to the bank to cash my bonds or can i do it my self?
Matt - I’m not sure what you mean by “my Grandma left me” so first let’s establish that your name is on the bonds. If only your grandmother’s name is on the bonds, then this is a lot more complicated.
But if your name appears first on the bonds, or if your name is second with the word OR between the names, then you should have little trouble cashing the bonds.
However, different banks have different rules. Most would allow an 18-year-old with a driver’s license or other state ID to cash a bond, but you might want to call ahead to see what the rules at your bank are.
Tom Adams
i have a savings bond purchased for my goddaughter in 1990. her mother and i had a falling out and she refused to let me give it to her. the girl is now an adult. i may or may not be able to get this to her. i would like to cash it. my ss# is the one listed, but it’s my goddaughter’s name and address as i listed it at the time. can i cash this? will it then go against her taxes or mine or both? what identification will i need if i do cash it?
Catherine - you can’t cash it. Only the person named on the bond can cash it.
Tom Adams