Who Can Cash in Savings Bonds for Underage Persons?

Child Can Sign

If the child cashing the bond is old enough to sign the savings bond and has a Social Security number, she can cash the bond herself. Additional proof of identification is required by the bank, such as a valid passport or driver's license. If the underage person does not have acceptable identification, the ID information of a parent can be used and listed on the bond.

If the child is too young to sign the savings bond, a parent can sign. The child must be living with the signing parent, or the parent has legal guardianship. When the parent signs the bond, the Treasury Direct website states the following sentence must be written by the parent on the back of the bond then signed: "I certify that I am the parent of Jane Doe with whom Jane Doe resides (or to whom legal custody has been granted). She is 4 years old and is not of sufficient understanding to make this request. John Doe on behalf of Jane Doe."

The bank has the authority to not redeem a bond signed by a parent. Banks must, in most circumstances, redeem a properly presented savings bond, but in this instance the bank can choose not to redeem it. The signature of the parent can be guaranteed by a bank officer and the bond mailed to a Treasury Retail Security Site for redemption by mail.

A savings bond cannot be redeemed within the first 12 months after it is purchased. Savings bonds cashed in the first five years, after issue, will incur an early redemption penalty. The penalty will be the interest amount earned on the bond in the last three months. The maximum amount of savings bonds that can be redeemed at a bank is $1,000. Larger amounts must be signature-guaranteed at the bank and mailed to a Retail Security Site for redemption by check.