Ask an Adviser: What should I do with Paper U.S. Savings Bonds? How to Convert Paper U.S. Savings Bonds to Electronic Bonds. 

The Discovery of Forgotten Assets 

Have you ever discovered something you’d forgotten you had? Savings bonds can be like that.  Maybe you received the bonds as a gift or purchased them years ago and haven’t looked in that file or safe place in a while.  Once discovered, you can either cash* them in or convert them into electronic bonds.  Since January 1, 2012, financial insti­tu­tions stopped issuing paper versions of Series EE and Series I savings bonds. While bonds purchased after this date are stored electron­i­cally, those purchased before then can be converted to electronic bonds. 

Converting your U.S. savings bonds to electronic bonds allows you to see their current rate and value, along with interest earned and the tax impact of cashing the bonds now or at maturity, which is important as you plan for retirement. 

The Advantages of Electronic Conversion 

There are several reasons why converting paper bonds to an electronic form is advantageous: 

• You will be able to access the account 24 hours a day, seven days a week. Current values will be easily displayed. 

• There is no need for safekeeping or worrying about lost, stolen or damaged bonds. 

• You can change the regis­tration of bonds; however, some bonds will require a signed owner release. 

• By converting your bonds, you can revisit the regis­tration and make any necessary changes to benefi­ciary designations. 

• Proceeds from bond sales upon maturity can be automat­i­cally deposited into your bank account. Keep in mind that the bonds will be automat­i­cally redeemed upon maturity. Interest due will be reported in the year of maturity and the owner will not have discretion on when to redeem the bonds and pay tax on the accumu­lated interest. This can be an advantage to prompt you to reinvest the proceeds or a disad­vantage if the tax conse­quences are unintended. 

How to Convert via SmartExchange 

You can convert your paper bonds to electronic bonds through a program called SmartEx­change at Treasury​Direct​.gov. 

1. Gather and Sort: Gather your paper bonds and sort them by registration. 

2. Open an Account: Set up an account online at Treasury​Direct​.gov. 

3. Mail Your Bonds: After setting up your online account, follow the instruc­tions provided by Treasury​Direct​.gov for securely mailing our paper bonds. 

Eligible Bond Series: Only Series E, Series EE, and Series I paper bonds are eligible for electronic conversion. Series H and Series HH bonds, must be redeemed directly through the U.S. Treasury and cannot be converted electron­i­cally or redeemed at your local financial institution. 

Comparison: Paper vs. Electronic  

While converting bonds to an electronic format requires some extra time, the investment is worth the effort. Safely storing and managing your savings bonds is important at any stage of life, and partic­u­larly as you plan for and enter retirement. 

As shown above, electronic bonds offer greater conve­nience and security compared to paper bonds. 

* You can receive cash for your Series EE or I bonds any time after 1 year of ownership, but if you’ve owned the bonds for less than 5 years, you will lose the last 3 months of interest.  See the following link for more infor­mation about cashing in your bonds. 

https://​www​.treasury​direct​.gov/​s​a​v​i​n​g​s​-​b​o​n​d​s​/​c​a​s​h​i​n​g​-​a-bond

This article was origi­nally published on November 21, 2019, and was updated for accuracy and relevance on the date above.