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Dear Dr. Don,
I have about 110 U.S. savings bonds that I would like to cash in. I plan to use the money to buy a larger bond and want the transaction to be tax-exempt.
– Arthur Aggregate

Dear Arthur,
In the past, the Treasury let owners of savings bonds use the proceeds from redeeming savings bonds to buy Series HH/H savings bonds. This allowed investors to accomplish the twin goals of tax deferral and bond consolidation.

However, the Treasury stopped selling Series HH savings bonds (which were first issued in January 1980 and replaced Series H savings bonds) at the end of August 2004.

While you can’t consolidate your savings bonds into one big bond, you can convert the bonds to electronic form at the TreasuryDirect Web site by using the SmartExchange service. That would make it much easier to manage such a large savings bond portfolio.

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Dear Dr. Don,
I own three Series EE savings bonds with the following purchase dates and face value amounts:

?  $500 (June 1983)
?  $1,000 (December 1993)
?  $500 (May 1994)

When should I cash them in? Do I just take them to my bank and let them cash them?

Are all three at full value as of July 24, 2009?
– Suzanne Savings

Dear Suzanne,
Series EE savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the bonds.

These bonds were purchased at half their face value. Over their original maturities, the bonds increase in value to become worth at least the face amount. During the extended maturity period, the bond continues to earn interest according to the terms of the extension period.

The Series EE bond you own from 1983 will reach its final extended maturity in June 2013. At

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