You can cash your Series HH/H bonds through most financial institutions. While your local financial institution can't actually pay you for the HH/H bonds, they'll be able to help you by forwarding the bonds to a Federal Reserve Bank that can cash them.

Requirements for Cashing HH/H Bonds

To cash HH/H bonds:

• HH bonds must be at least six months old.
• You must be able to identify yourself as the owner, co-owner, or other person authorized to cash the bonds.
• The financial institution must guarantee your signature on the back of the bonds, once you establish your identity.
• If you want to expedite payment, request direct deposit by completing a direct deposit sign-up form, PD F 5396.
• If you're not the owner or co-owner, you'll need to establish your identity and also establish that you're entitled to cash the bonds you're presenting.
• Forward the bonds, with direct deposit instructions and any supporting evidence of entitlement, if applicable, to a Federal Reserve Bank.
• If you're cashing bonds on which a decedent is named, see Death of a Series HH/H Bond Owner for more information.

It's probably obvious that you won't receive any interest payments on HH/H bonds after you cash them. However, it's not as obvious how the timing of your redemption transaction can affect the interest you earn. In the worst case, if you cash your bonds just prior to an interest payment date, you'll receive the redemption value for the bonds but you won't receive your next interest payment. See HH/H Interest Payment Dates and Rates for the dates interest is due on the bonds.

Interest Due in the Upcoming Month

If the bonds you're submitting for payment have interest due the following month and you want to receive the interest, you must request in writing that the bonds be held until the following month. [The Federal Reserve Bank will then hold the HH/H bonds until the following month.] If you take advantage of this service, you'll wait just a little longer to receive your redemption payment, but you'll receive one more interest payment because you'll have held your bonds for the full six-month interest period.

Deferred Interest

If you deferred paying Federal income tax on interest earned on bonds you exchanged for the HH/H bonds you're cashing, you'll need to report this deferred interest for the year in which you cash the bonds. You'll receive a 1099-INT showing the deferred interest, which is reported to the IRS. The amount of any interest you deferred is shown on the face of each HH/H bond.

For information on reporting the deferred interest on a deceased bond owner's final federal income tax return, see A Word on Taxes After Death.