Cashing a Savings Bond Not in Your Name: A Parent's Guide to Accessing Your Child's Funds

Savings bonds remain a traditional way for grandparents and relatives to invest in a child’s future. However, there are times when parents or guardians need to access these funds before the child reaches adulthood. The process to cash a savings bond that is not technically in your name requires following specific U.S. Treasury guidelines. Understanding these procedures helps ensure you can successfully withdraw the funds when needed.

Paper Savings Bonds: Two Essential Requirements

For physical paper savings bonds, the Treasury has established clear conditions that must be satisfied before you can cash them on behalf of your child. First, your child must be too young to sign a redemption request independently. Second, you must either live with the child or possess legal custody—these are non-negotiable requirements.

When you’re ready to cash the bond, write specific language directly on the back of the document and sign it as the parent or legal guardian acting for the child. The Treasury requires this exact certification: “I certify that I am the parent of [child’s name]. [Child’s name] resides with me / I have been granted legal custody of [child’s name]. [She/he] is __ years old and is not of sufficient understanding to make this request.”

You then have two options. If a local bank or credit union agrees to process the redemption, they can pay you directly. If your financial institution declines, you’ll need to have your signature guaranteed or certified by a bank, then mail the bond to the Treasury Retail Securities Site. Additional details and current addresses are available through the official Treasury website.

Electronic Bonds in TreasuryDirect: Simplified Access Through a Minor’s Account

Electronic savings bonds stored in TreasuryDirect accounts operate under different rules. When bonds are held for a minor, they’re typically placed in a special minor’s account where the parent or guardian has full administrative authority from the outset.

The TreasuryDirect system lets you view all of your child’s bonds and choose partial or full redemption options directly online. Most of the setup work happens when you first establish the minor’s account, which means that if configured properly initially, cashing electronic bonds can be significantly simpler than handling paper versions.

That said, making changes to a minor’s account after it’s created can introduce complications and require additional steps to complete a redemption. Planning ahead during the initial setup phase pays dividends later.

Step-by-Step: What You Need to Do to Cash Your Child’s Savings Bond

Start by determining whether you hold paper or electronic bonds—this distinction shapes your entire approach. For paper bonds, gather the physical documents and prepare the certification statement. Have it notarized or guarantee-signed if your bank won’t process it directly.

For electronic bonds, log into your TreasuryDirect account, navigate to the minor’s account section, review the current holdings, and select your redemption preference. The online system will guide you through the remaining steps.

Savings bonds can serve as an excellent introduction to long-term financial planning for children. When circumstances require you to access these funds before your child comes of age, having a clear understanding of whether you’re working with paper or electronic bonds—and meeting the Treasury’s requirements—makes the process straightforward and manageable.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
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