Comments on: Interest penalty for cashing Savings Bonds before five years http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/ Thu, 11 Mar 2010 21:26:44 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-50478 Mon, 02 Nov 2009 22:04:42 +0000 http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-50478 Jill - The limitations and other info about this deduction are <a href="http://www.savings-bond-advisor.com/the-fine-print-of-the-us-savings-bond-college-education-deduction/" rel="nofollow">here</a>. Tom Adams Jill - The limitations and other info about this deduction are here.

Tom Adams

]]> by: Jill http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-50367 Sun, 01 Nov 2009 00:00:53 +0000 http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-50367 My husband and I want to cash our EE bonds in for our children's college tuition. We don't believe there is a penaly when we file taxes because of us using them for college. How do we prove that is what we used them for? My husband and I want to cash our EE bonds in for our children's college tuition. We don't believe there is a penaly when we file taxes because of us using them for college. How do we prove that is what we used them for?

]]> by: Tom Adams http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-49840 Mon, 19 Oct 2009 16:44:24 +0000 http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-49840 David - Much of the info you're looking for, as well as a couple of things you haven't thought of yet, is in my post about <a href="http://www.savings-bond-advisor.com/splitting-savings-bonds-after-a-divorce/" rel="nofollow">splitting Savings Bonds after a divorce</a>. If you can get your ex-wife to have her signature on the PDF 4000 form (mentioned in that post) certified at a bank, that will expedite the transfer to you. Tom Adams David - Much of the info you're looking for, as well as a couple of things you haven't thought of yet, is in my post about splitting Savings Bonds after a divorce.

If you can get your ex-wife to have her signature on the PDF 4000 form (mentioned in that post) certified at a bank, that will expedite the transfer to you.

Tom Adams

]]> by: David Ray http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-49833 Mon, 19 Oct 2009 15:43:04 +0000 http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-49833 Hello, Tom I am recently divorced. I received my ex-wife's savings bonds as part of our divorce settlement. She has signed her name on the back of the bonds(EE Bonds). What am I required to do to cash these bonds? I am named as co-owner POD, also. Hello, Tom

I am recently divorced. I received my ex-wife's savings bonds as part of our divorce settlement.

She has signed her name on the back of the bonds(EE Bonds). What am I required to do to cash these bonds? I am named as co-owner POD, also.

]]> by: Tom Adams http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-782 Mon, 28 Aug 2006 23:26:32 +0000 http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-782 Joan - the first day you can redeem your I bonds is Nov 1, 2006. At that point you will have earned 6.73% for six months and 2.01% for six months - about $1,320. The early withdrawal penalty will be three months of 2.01% and your interest earnings after penalty will be $1,164. Keep in mind a new interest rate for your I bonds will also be announced on Nov 1. It will be much higher than the 2.01% rate you're earning now. Read <a href="http://www.savings-bond-advisor.com/how-to-cash-in-a-savings-bond/" rel="nofollow" rel="nofollow">How to cash in a savings bond</a> to learn where to redeem your Savings Bonds. Joan - the first day you can redeem your I bonds is Nov 1, 2006.

At that point you will have earned 6.73% for six months and 2.01% for six months - about $1,320. The early withdrawal penalty will be three months of 2.01% and your interest earnings after penalty will be $1,164.

Keep in mind a new interest rate for your I bonds will also be announced on Nov 1. It will be much higher than the 2.01% rate you're earning now.

Read How to cash in a savings bond to learn where to redeem your Savings Bonds.

]]> by: Joan Mihay http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-781 Mon, 28 Aug 2006 19:32:41 +0000 http://www.savings-bond-advisor.com/interest-penalty-for-cashing-bonds-before-five-years/#comment-781 I wish to redeem bonds bought 17 November 2005. When is the first date I can redeem than and have the penalty based on the current rate and not on the one in effect last November? Can I redeem tham at my bank? I bought $30,000 I Bonds on 17 November 2005. What would their value before penalty on September 1,2006, and how much would the penalty to be deducted from that be? I wish to redeem bonds bought 17 November 2005. When is the first date I can redeem than and have the penalty based on the current rate and not on the one in effect last November?

Can I redeem tham at my bank?

I bought $30,000 I Bonds on 17 November 2005. What would their value before penalty on September 1,2006, and how much would the penalty to be deducted from that be?

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