About Tom Adams Expertise I can answer questions about US Savings Bonds - current value, current interest rates, how to get them redeemed, what to do if they are lost or stolen, how to buy them online, etc...
Experience Experience in the area I am the author of the best-selling book about Savings Bonds,
Savings Bond Advisor.
Expert: Tom Adams Date: 12/6/2007 Subject: cashing I bonds
Question QUESTION: Can I bonds be cashed/redeemed for less than the purchase amount if held for less than 5 years? Can I redeem one for $2,500 if purchased for $5,000?
ANSWER: Hi June - yes Savings Bonds can be partially redeemed, but it's unlikely your bank will know this.
If they say they can't do it, ask them to call their Savings Bond contacts at the Federal Reserve to get instructions on how to handle the transaction for you.
If you don't have any luck, let me know. There are other ways to do this.
Tom Adams
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QUESTION: Thanks fo r the info. What happens to the value of the bond when it is partially redeemed?
Answer June - You will get $2,500 of new bonds with the same issue data as your old $5,000 bond and $2,500+ in cash. The + represents the interest that $2,500 has earned.
So it's an exact split and the $2,500 still in bonds is still worth what it was before the split.
