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- 1). Plan ahead. Savings bonds mature slowly over time. For example, a $1,000 Series EE savings bond (one of the most common) purchased in April 2010 will not fully mature for 10 years. In addition, if cashed out before five years passes, you will not reap the last three months in interest.
- 2). Purchase savings bonds years before you, or the recipient, enter college. Series EE savings bonds can be bought at half of face value ($25 for a $50 bond). Series I bonds must be purchased at face value, but will mature faster that Series EE bonds.
- 3). Gather up and look at your bond receipts when you are ready for college. Bond receipts are the paper form (which are valueless) of the actual bond. They help the bondholder track his earnings. You must be listed at least as a co-owner of the bond. Your parents or legal guardians may be listed as co-owners.
- 4). Ask for the co-owner's consent to cash in the bonds. You cannot proceed unless both (or all) owners on the bond agree to cash them in. Signatures are required at the bank at which all bonds are stored. All owners must be present to witness and sign off on when the bonds are cashed in.
- 5). Find the value of each bond at TreasuryDirect.gov, the U.S. Treasury's value estimator. Bonds mature over time. Therefore, some of your bonds may be worth less than the face value. By the same token, some of your older bonds may be worth more.
- 6). Enter the denomination amount, the serial number and when the bond was issued. Also include the Series (e.g. EE). Add together the full amount of all bonds. This is what can be cashed in as of the date of calculation.
- 7). Visit the bank where the bonds are housed. You do not have the actual bonds---just the receipts. Make sure to bring all co-owners to the meeting. Cash in the amount you wish to take.
- 8). Get a cashier's check in the full amount of the bonds. Ask your personal banker to make out the check to the name of your university or college. You may want to use the proceeds for something specific such as tuition, housing or books, so it's best to figure out who the payee will be before you visit the bank.
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