Take the savings bonds to a bank or other financial institution if you are now the owner, or if your parent named you as survivor beneficiary on the bonds. Fill out the redemption form on the back of the bonds and sign in the presence of a bank official.

Who are bearer bonds payable to?

A bearer bond is a fixed-income security that is owned by the holder, or bearer, rather than by a registered owner. The coupons for interest payments are physically attached to the security.

Can a inheritor redeem an inherited savings bond?

For bonds that have not yet matured, inheritors have a choice of either redeeming the bonds or getting them reissued in their own name. Reissuing the bonds allows you to continue to earn whatever interest the bond pays until its maturity date. To determine what the bond is worth, you can use the savings bond calculator on Treasury Direct.

What do you need to know about inherited savings bonds?

Input the type of bond (the “series”), denomination, serial number and issue date, and the calculator will tell you how much interest has already accumulated at the current interest rate, and when the bond matures. Inheritors will want to dump bonds that have matured and stopped earning interest ( find a list here ).

Why are bearer bonds difficult to trace and replace?

Bonds payable to whoever holds them (the bearer) are called Bearer bonds (Unregistered bonds). Since there is no recordkeeping in Bearer bonds, whoever holds the title to the bond upon payment date will be presumed its rightful owner. Thus as a result, lost or stolen bearer bonds are difficult to trace and replace.

How does a bearer bond work to cash in?

Bearer bonds work similarly to cash in that the current holder can submit a coupon to the issuer to receive earnings when due. The owner can sell or trade the bond to another investor, who can in turn submit a coupon when the next interest payments are due and receive the earnings.