AKAMAI MONEY
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By Deborah Adamson
Advertiser Staff Writer
Q: When I was in the Army, I bought U.S. savings bonds every month through payroll deduction from 1967 to 1979. The savings bonds were sent to my mother. She has passed away and I can't find the bonds. Can I track them down any other way? Robert Kaawaloa, 'Ewa.
A: It's not uncommon to misplace savings bonds since people tend to hold them for years, if not until the end of their 20-, 30- or 40-year maturities. Last year, the U.S. Treasury Department processed 99,000 forms for lost bonds — and each form could list several savings bonds. The good news is that they can be replaced for free, but the entire process may take months.
If you don't know the serial numbers of the bonds, write to the government to get a list of what you own, said Steve Meyerhardt, a spokesman with the U.S. Treasury Department, Bureau of the Public Debt. The address is Bureau of the Public Debt, P.O. Box 1328, Parkersburg, WV 26106-1328.
Got a question about consumer issues or personal finance? Send it to Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.
Include the names of the bond's owners — two people can own a bond together — as well as the address and Social Security number of the first listed owner. The wait is at least four weeks.
Who to ask
When you get the list, a replacement form will be enclosed as well. Fill out the form with information from the list to get a replacement of your lost savings bonds. It takes about a month to get the bonds ordered, Meyerhardt said.
Military personnel who kept their bonds with the Armed Forces should contact the Department of Defense Military Safekeeping program. For Air Force, call (303) 676-7638; Army, call (317) 510-0586; Marines, call (816) 926-5303; Navy, call (216) 522-5880. To write to them, addresses are listed at http://www.publicdebt.treas.gov/sav/savskeep.htm.
If your bonds no longer pay interest, cash them in. Savings bonds issued on or before November 1965 stop paying interest after 40 years; those issued on or after December 1965 have a 30-year maturity. The only exception is Series HH, which has a 20-year maturity. Most of the Series E bonds have reached final maturity and aren't earning interest. New HH bonds will not be issued after Aug. 31, Meyerhardt said.
Most commercial banks as well as some thrifts and credit unions should be able to cash your bonds for free. Once cashed, you have to pay federal taxes, but not state and local taxes, on them. The interest is taxed as ordinary income — just like your wages and interest earned from your bank savings account.
If you're holding on to your savings bond but wish to know how much it's worth now, use the U.S. Treasury Department's savings bond calculator at http://www.publicdebt.treas.gov/sav/savcalc.htm. You need the bond series, denomination, serial number and issue date.
You can buy a savings bond at most financial institutions or through the U.S. Treasury Department at www.treasurydirect.gov, which issues electronic not paper bonds. At present, only the Series EE and I bonds are available for sale, Meyerhardt said. Right now, Series EE pays an annualized interest rate of 2.84 percent while Series I pays 3.39 percent. The interest rate is adjusted each May and November.
You pay half the face value for a Series EE bond — a $50 bond will cost you $25 upfront. How long your $25 turns into $50 depends on the interest rate paid. Moreover, many bonds held to maturity end up being worth much more than their face value.
But Meyerhardt said the difference between the purchase price and face value has confused some consumers, so the U.S. government decided to simplify things for the Series I bonds. In this series, the purchase price is the face value of the bond.
About 55 million Americans own at least one savings bond, with the 35 to 55 age group showing the largest ownership.
Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.
