Thank you,
-- Ron Redemption
Dear Ron,
All of these savings bonds have matured and have stopped earning interest, so what they used to earn isn't all that relevant. That said, you can go to the TreasuryDirect.gov website, download the Savings Bond Wizard and input your mother's savings bond portfolio. Or, you can simply use the site's savings bond calculator.
I prefer the Savings Bond Wizard because it will let you load the entire portfolio and see the yield on each individual savings bond, what it's worth today, and the breakdown between principal and interest. The Wizard also will tell you the total interest earned on the entire portfolio and the total value of the portfolio.
Unless she paid taxes on the interest as it was earned over the years, she's going to face a big tax bill in redeeming the bonds. That's OK. There's nothing that can be done about it, and the tax obligation won't go away.
Savings bond owners can defer income tax on the interest earnings until the year that a bond is cashed in or the year that it matures. You mom also may have to pay a penalty if she does owe taxes on the matured bonds.
For bonds that matured within the past three years, she may be able to avoid the penalty by filing amended tax returns. I suggest that she work with her tax professional to make sure she gets the tax side right, but paying the taxes and any penalty aren't reasons for her not to cash in these matured savings bonds that have stopped earning interest.
Get more news, money-saving tips and expert advice by signing up for a free Bankrate newsletter.
Ask the adviser
To ask a question of Dr. Don, go to the "Ask the Experts" page and select one of these topics: "Financing a home," "Saving & Investing" or "Money." Read more Dr. Don columns for additional personal finance advice.
Bankrate's content, including the guidance of its advice-and-expert columns and this website, is intended only to assist you with financial decisions. The content is broad in scope and does not consider your personal financial situation. Bankrate recommends that you seek the advice of advisers who are fully aware of your individual circumstances before making any final decisions or implementing any financial strategy. Please remember that your use of this website is governed by Bankrate's Terms of Use.