Basic Knowledge
Who issues Savings Bonds?
The U.S. Department of the Treasury
What is a payroll savings plan regarding U.S. Savings Bonds?
A way to link paychecks to Savings Bonds through an employer and a Treasurydirect account.
If the person redeeming the bonds is not the bond owner, co-owner, or beneficiary, who do you get to assist you?
A supervisor.
How does a customer check the worth of their Savings Bond?
Direct them to Treasurydirect.gov and locate the Savings Bond Calculator tab.
Why would someone want a Savings Bond?
One of the safest investments; backed by the full faith & credit of the U.S. government. Inflation protection. Long-term investment. Fund education with tax efficiency.
Noncustomers may only cash up to $________ in Savings Bonds.
$1,000
What must a beneficiary present to redeem a Savings bond?
The death certificate of bond owner.
The bond owner has died and the Savings Bond is electronic: What do you tell the customer?
Have them contact the U.S. Department of the Treasury and they will assist them.
What is a trust?
A trust is where Savings Bonds are held by one person for the benefit of another person.
What are the two types of Savings Bonds?
I Savings bonds & EE Savings bonds
Treasury bonds
Who can you authorize to cash your bonds for you?
An attorney-in-fact, requires paperwork.
True or False: Bonds less than 1 year old from date of purchase cannot be redeemed.
TRUE
The bond owner has died and the Savings Bond is paper. No one else is listed.
The Savings Bond is part of the deceased estate.
Who is a trustor?
A person, institution, or organization who creates a trust. (maker, donor, grantor, settler).
I Savings Bonds
(Interest rate: fixed or variable?) (Amount: MIN/MAX?)
Name one other fact about these bonds.
FIXED/MIN:$50/MAX:E$10K-P$5K.
Protects against inflation. Interest rate changes every 6 months. Current rate= 5.27%. Can buy paper I bonds with tax refunds.
Who can cash a Savings Bond for children 18 years old or younger?
The child's parent, legal guardian, or an adult that the child lives with.
Where is the tax return form located for customers with a Savings Bond?
What form is it?
Available in customers' Treasurydirect account January of the year after bond is cashed.
1099-INT
Two people are listed on a Savings Bond and one dies, who does the Savings Bond belong to?
The surviving person is the owner of the Savings Bond.
Who is a trustee?
Can there be more than one trustee in a trust?
A person appointed to manage a trust.
YES.
EE Savings bonds
(Interest rate: fixed or variable?) (Amount: MIN/MAX?)
Name two other facts about these bonds.
FIXED/MAX:$10K/MIN$25
Guaranteed to double in 20 years. Current rate= 2.7%. Can cash after 1 year with a loss of interest. low-risk. Earns interest for 30 years or until cashed.
What information do we need from a customer/non-customer to cash a bond? (4)
Name, SSN, Address, & Phone number. From this, a form generates and requires a signature.
Customers who have been a part of an official disaster can cash Savings Bonds even if they have been lost, damaged, or contaminated. Could they redeem their bond if it is only 5 months old?
YES. In the case of an official disaster declaration, people can cash their bonds even if they have not aged a full year. This is handled with the U.S. Treasury.
Two people are listed on a Savings Bond and both pass away. Whose estate does the bond belong to?
The bond is part of the most recently deceased estate.