Friday, June 10, 2011

Unclaimed Savings Bonds

During this time of year, there are many graduation celebrations of all levels -- from preschool to college.  A popular gift for many of those graduates are U.S. Savings Bonds.  Under the most popular savings bond program (series EE), the bond is purchased for 50% of its face value, and matures 20 years from issuance.  Though the bond matures after 20 years, they continue to earn interest for an additional ten years (or until cashed).

Of course, with a 20 year period before the bond matures, many graduates will put them in a drawer or safe deposit box and lose track of them completely.  These items held by the federal government, however, are not escheated to the states as unclaimed property.  Instead, the Treasury Department has a special webpage to help bondholders find information about lost or matured bonds.  Please check it out.

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