Partial Redemption of Electronic Savings Bonds

“qara.info has partnered with CardRatings for our coverage of selected credit card products. qara.info and CardRatings may receive a commission from card issuers. All opinions expressed are the author’s alone, and the content has not been provided nor approved by any of the companies mentioned. Thank you for supporting this independent site.”

A relatively unpublicized new feature of buying your Savings Bonds online is the ability to cash out only part of your bonds, mentioned briefly here. I just noticed this recently, and explored it further in my account with my paper bonds that were recently converted to electronic format. Now that they are electronic – I can partially cash out those too! Apparently the only two restrictions are:

1) The minimum amount you can redeem is $25
2) The remaining value of the bond cannot be less than $25

Here is a screen shot of me trying to partially redeem my bonds:

Savings Bonds Partial Redemption Screenshot
(click to enlarge)

As you can see, it’s pretty straightforward. Just input the amount you want, and it’s deposted in your bank account in a couple days. Pretty nifty. I gather from this that you can repeatedly cash out amounts as needed. This is easier than having to buy a bunch of smaller increments like 5x$1,000, although I suppose not by too much.

“qara.info has partnered with CardRatings for our coverage of selected credit card products. qara.info and CardRatings may receive a commission from card issuers. All opinions expressed are the author’s alone, and the content has not been provided nor approved by any of the companies mentioned. Thank you for supporting this independent site.”



User Generated Content Disclosure: Comments and/or responses are not provided or commissioned by any advertiser. Comments and/or responses have not been reviewed, approved or otherwise endorsed by any advertiser. It is not any advertiser's responsibility to ensure all posts and/or questions are answered.

Comments

  1. http://financenstuff.blogspot.com/ says:

    Great info. thanks. Hey, how about creating a link to my site? I have a link to yours. thanks

  2. By this feature, I assume if you redeem partial of your bonds within 5 years, you are only losing 3 months interests on the exact amount you redeem, not the total principle. Can anyone confirm this?

  3. I assume the same as you, Jack, I don’t see how it could be anything else. This saves them the trouble of having people buy 50 $100 Savings Bonds instead of 1 $5,000 one.

  4. I tend to think when you redeem partial amount, it is considered uncomplete 5-year time for the whole principle, therefore, you would lose 3 months interests on the whole principle, not the 3 months interests of the partial amount.

  5. I don’t see that. Otherwise, you could just go and buy 10 $500 bonds, and break only the ones you need to, and leave the rest. I figure the only reason they let you do partial redemptions is exactly that – people were buying tons of smaller denominations creating excess paperwork and overhead. Notice the smallest amount you can leave in the bond is the smallest bond size you can buy – $25.

    However, this is just my opinion and I could be wrong. I won’t speculate any more – I’ll give them a call next week when I have time.

  6. Looking forward to hearing from you after you made the call. I’ve been burned a few times in the past by not reading carefully on the fine prints, that made me over-suspicious if something sounds too good. But that’s still better than sorry.

  7. To Jay (and everyone else):

    Dear Jonathan,

    The 3 month interest penalty will only apply to the partial amount you redeem.

    Janie Marks
    Customer Service Specialist

  8. Thanks again for the great info!!!

Speak Your Mind

*

私たちの会社

www.topobzor.info

www.velotime.com.ua/category/sportivnye-velosipedy/