and no longer pay interest
Thousands of investors own billions of dollars of savings bonds that have stopped paying interest, and they don't even know it. Others have no idea what their bonds are worth or how much interest they pay.
About 55 million Americans own savings bonds, often purchased through payroll savings plans or received as gifts for newborn children. The value of savings bonds held by investors and earning zero interest is an estimated $6 billion. Last year, many 30-year and 40-year bonds ceased to draw interest. Those who own H or HH bonds aren't notified that they have reached maturity. It's up to bond holders to know.
Those who have inherited a number of bonds often just put them aside with the idea that the principle is safe, so they don't have to worry about them. But bond holders should check to see if they have expired.
While there are services that will do the job, you can do it yourself. If the expiration date is hard to discover, write to the Bureau of the Public Debt, P.O. Box 1328, Parkersburg, WV 26106. Or on the Web at www.publicdebt.treas.gov From that site, the Savings Bond Wizard can be downloaded. It gives the current value, interest earned, date of the next interest accrual, the yield to date, and when the bond will stop paying interest. Bonds are organized by serial number.
Savings-bond owners don't owe state or local income taxes on the interest earned over the years. But when the bonds mature and are cashed in, federal income tax is owed on earned interest.
