Two issues have risen regarding savings bonds that you may interest you.

First issue:    Do you have some old Series E bonds?  The last time Series E bonds were sold was June, 1980.  These bonds will stop paying interest in June 2010.  As of that date – no Series E bonds will be earning interest anymore.  If you are holding onto any Series E bonds, now is the time to consider cashing them in.  Even putting them in a savings account with most savings accounts earning 1% or less would be better than no interest being earned at all.

Not sure what your bonds are worth?  Have you lost bonds and no longer know where they are?  Check out the website treasuryhunt.com.  You can determine a current value of bonds that you have.  You can see if there are any bonds registered in your Social Security number that you do not have in your possession.

Savings bonds can be taken to any federal bank and many credit unions to be turned in and receive your cash.

Second issue: Starting with the 2009 tax returns, you can choose to get your refund in I bonds instead of cash.  The I bonds for 2009 can only be purchased in the name of the taxpayer and spouse.  Starting in 2010, you will be able to purchase I bonds for your children and other individuals.

You must purchase in increments of $50.  $50 is the least you can allocate to the bonds and $1500 is the most you can allocate to receiving your refund in bonds.

To receive all or part of your refund in I bonds, you must complete Form 8888.  This form directs the purchase.  In the routing transit number you will put the number 043736881.  You must check “savings account”.  In the account number spot you will type the word “Bonds”.  On page 2 of Form 1040 you will indicate the dollar amount that you want to purchase.

You can elect to do this with part or all your refund.  Fill in the second line of refund information with your checking or savings account number to have the balance directly deposited.