Interest on savings bonds
I have old savings bonds from the 90’s. Can I avoid the large amount of interest. I’m a senior and my house is paid off.
Terry Says
You can’t avoid paying taxes on the interest. Once they mature — and that typically happens in 30 years– you should cash them in. You can probably do it over a period of three years, spreading out the tax bill and the potential impact on Medicare Part B premiums.
Go to this link to see how to value, determine final maturity, and cash in your old savings bonds.
https://treasurydirect.gov/savings-bonds/cashing-a-bond/
And Happy New Year. I’m working to fulfill my resolution to answer all questions by the end of the year!!
