SmartExchange FAQs

What is the new conversion feature within TreasuryDirect?

The new feature, called SmartExchange, enables holders of paper Series E, EE, or I savings bonds to trade them in for electronic securities of the same series and issue dates in a special Conversion Linked Account within their TreasuryDirect online account.

TreasuryDirect accounts permit owners to purchase, manage, and redeem Treasury securities electronically – 24 hours a day, 7 days a week – through a secure Internet connection directly with the Treasury Department. Series EE and I savings bonds, Treasury bills, notes, bonds and inflation-protected securities are available for purchase through TreasuryDirect.

Who can exchange their paper savings bonds for electronic securities?

Any TreasuryDirect account owner who is the sole owner, a co-owner, or the owner with a beneficiary. Account owners can also exchange paper bonds purchased as gifts for someone else or bonds they have obtained through inheritance or other change in ownership.

What are the advantages to trading my paper bonds for electronic securities in TreasuryDirect?

Electronic securities give owners a greater degree of flexibility and convenience than paper. For example:

  • Full or partial redemption of electronic bonds can be scheduled at any time – 24/7 – and the funds deposited to a savings or checking account specified by the owner. The funds should be available the next business day. There is no need to go to a financial institution, nor are there restrictions on the number of bonds or the value that can be redeemed at any one time once minimum requirements are met.
  • Online holdings and their current values can be viewed at any time. There is no paper to be accidentally lost or destroyed.
  • Account owners can change the registration of their bonds or transfer the securities to another account at any time (some ownership restrictions apply; transfers may result in a taxable event).

Am I required to exchange my bonds?

No. Owners of paper bonds are not required to open a TreasuryDirect account or convert their securities to electronic form.

What bonds can I exchange?

You can convert Series E, EE, and I paper bonds on which you are the sole owner, a co-owner, or the owner with a beneficiary. You can also convert paper bonds purchased as gifts for someone else or bonds you have obtained through inheritance or other change in ownership.

Can I convert Series H or Series HH bonds?

No, you can't convert Series H or Series HH bonds to electronic securities in your TreasuryDirect account.

Can I trade in matured bonds?

Yes, however, if you submit a matured bond, TreasuryDirect automatically redeems the bond and purchases a Zero-Percent Certificate of Indebtedness in your Primary Account with the proceeds. You can use all or some of the proceeds to purchase new securities or redeem the C of I to your bank account, in full or part. The interest earned on the bond is reportable to the IRS for the tax year in which the bond is redeemed.

Can I convert bonds registered to my personal trust?

No, you can't exchange bonds registered in trust form at this time.

Can I exchange bonds on which I am named as representative of an estate or organization?

No, you can't convert bonds registered in the name of a legal guardian, representative, or an organization at this time.

Can I trade in bonds I've bought as gifts (we consider any bond you've bought in someone else's name to be a gift)?

Yes, you can exchange bonds you've bought as gifts. Once converted, the bonds are placed in your Conversion Linked Account Gift Box.

What happens to gift bonds I exchange that are matured (we consider any bond you've bought in someone else's name to be a gift)?

Gift bonds that have reached final maturity can be submitted; however, TreasuryDirect automatically redeems them. Your Conversion Linked Account Gift Box will list each bond redemption under "matured gift proceeds" in the name of the owner. Similarly, if a converted gift security matures before you deliver it to the recipient, TreasuryDirect automatically redeems it and places a notation under "matured gift proceeds". You can deliver the proceeds to the owner from the Conversion Linked Account Gift Box. To deliver the proceeds, you'll need to know the owner's TreasuryDirect account number. When you deliver gift proceeds, the interest is reportable under the recipient's Social Security Number for that year.

I have bonds that I'm entitled to but my name isn't on them. Can I exchange these?

Yes, you can trade in the bonds; however, the transaction may require supporting evidence. We will contact you after we receive the bonds and provide appropriate instructions to complete the transaction. More processing time may be required in these situations.

When can I convert my bonds?

You need to tell us you want to convert your paper savings bonds to electronic securities by sending us an e-mail using the "Contact Us" link within your TreasuryDirect account. You can convert your bonds through SmartExchange anytime after you receive an e-mail message from TreasuryDirect informing you that we are ready to accept your bonds for conversion. At that time, you'll find additional information in your Investor InBox and you will see a Conversion Linked Account (My Converted Bonds) in the account listing under Linked Accounts Information on your TreasuryDirect Account Summary page.

When I trade in my bonds, will the interest earned be reported to the IRS?

No, if your bonds have not reached maturity, the interest earned on those bonds will not be reported to the IRS at the time of conversion.

If my bond matures after I exchange it, will it be automatically redeemed and the interest earned reported?

Yes, once your bond is in electronic form, TreasuryDirect automatically redeems it at maturity and purchases a Zero-Percent Certificate of Indebtedness with the proceeds, unless you have scheduled it for redemption. The interest earned on the security is reported to the IRS for that tax year.

Do I have to pay a fee to convert my bonds?

No. However, you are responsible for the postage required to mail the bonds to Treasury for conversion.

How do I get started exchanging my bonds?

Tell us you want to convert your paper savings bonds to electronic securities. The best way to notify us is by sending us an e-mail using the "Contact Us" link within your TreasuryDirect account. When we have prepared your account for the conversion, we’ll send you an e-mail. While waiting for our e-mail, gather your Series E, EE, and I savings bonds and sort the bonds by the names and connectors (OR, POD, or beneficiary) on them. Grouping your bonds by registration will simplify the steps you need to take to enter the bonds you wish to convert.

Should I sign the request for payment on the back of the bonds?

No, please DO NOT sign the back of your savings bonds. Your signature on the conversion manifest authorizes us to convert the bonds.

What do I do next?

Log into your TreasuryDirect account at a computer with access to a printer (you will need to print a manifest to submit with your bonds). Open My Converted Bonds linked account – it's on your Account Summary page – and click on the Manage Direct tab. You'll see a new category of actions titled Manage My Conversions. Follow the detailed instructions under "How to convert my paper bonds".

Is My Converted Bonds and Conversion Linked Account the same thing?

Yes. My Converted Bonds is the name given to your Conversion Linked Account by TreasuryDirect. You can personalize the name of your Conversion Linked Account – just go to the Account Info tab in your Conversion Linked Account, click "Edit" and enter a new name in the Personalized Account Name field.

It looks like I need to create a registration list. How do I do this?

For each different registration, the address doesn't matter, just the names:

  1. Enter the Social Security Number and first-named owner. If there is no Social Security Number, and the owner's Social Security Number is unknown, enter all zeros.
  2. Select "Single Owner" if one person is named on the bond. If two names are shown, select the connector that appears: "OR" or "Payable on Death" (may be shown as POD or Beneficiary). If a different connector appears, such as AND or WITH, or there are more than two names on the bond, select "OTHER".
  3. If there is a second name, enter the Social Security Number and name. If there is no Social Security Number, and the registrant's Social Security Number is unknown, enter all zeros.
  4. Click "Submit and Add Another" to add more registrations or "Submit" when you are done.

The instructions say I must enter each different registration on my paper bonds. What if I want to change the registration?

Please don't change the registration during the conversion process. Once the bonds are released to your Conversion Linked Account, you can change the registration online if you are the sole owner or the owner of Series EE or I securities in beneficiary form. If the securities are in co-owner form or you have Series E securities with a beneficiary, you will need the consent of the co-owner or beneficiary to change the registration. We process these transactions offline.

The instructions say I must enter each different registration on my paper bonds. What if the registration is incorrect?

If a registrant's Social Security Number is known, you can enter the correct information, however, if the name is incorrect for either registrant, please don't change it during the conversion process. Instead, in the Comments field, include information about the error. This will help us process your request. We may change the registration based on the information you provide. In other circumstances, we may contact you after we receive the bonds and provide appropriate instructions to complete the transaction. The transaction may require supporting evidence. More processing time may be required in these situations.

What happens to bonds when I select "Other" as the form of registration?

If the bond is not registered in an authorized form, we will change the registration to the closest authorized form. For example, a bond incorrectly registered "John Doe AND Mary Doe" will be changed to "John Doe OR Mary Doe". In other circumstances, we may contact you after we receive the bonds and provide appropriate instructions to complete the transaction. The transaction may require supporting evidence. More processing time may be required in these situations.

I'm finished adding registrations. What's next?

You're ready to add the bonds to your Conversion Cart. Click on the Manage Direct tab in your Conversion Linked Account to go back to Manage My Conversions and click "Add a bond to my cart". Select the registration for the bond you are adding to the Conversion Cart first, and click "Select Registration & Continue".

Can I mix series, registrations, etc., in a cart?

Yes, you can place different series, registrations, etc. in the same cart.

How do I add my first bond to my Conversion Cart?

On the Add a Bond page:

  1. Select the series and denomination that appear on the first bond.
  2. Enter the serial number (including the denomination letter prefix and series type suffix, for example, Q123456789E) and issue date (month and year) that appear on the bond.
  3. If appropriate, enter information in the Comments field. You should include information that may help us process your request, such as a change of name since the paper bond was issued.
  4. Click "Add to Cart".
  5. A counter at the bottom of your cart tracks the number of bonds you've added.

My first bond is now in my cart. What next?

You can continue adding bonds to the cart by clicking on "Add a Bond" or you can save your cart to add additional bonds later by clicking on "Save Cart". To return to the cart later, go to Manage Direct in your Conversion Linked Account and click either "Convert my bonds" or "View my cart".

I've chosen "Add a Bond". Now what?

The registration you selected for the first bond will be displayed. If this is the registration for the next bond:

  1. Select the series and denomination that appear on the bond.
  2. Enter the serial number (including the denomination letter prefix and series type suffix, for example, Q123456789E) and issue date (month and year) that appear on the bond.
  3. If appropriate, enter information in the Comments field. You should include information that may help us process your request, such as a change of name since the paper bond was issued.
  4. Click "Add to Cart".
  5. A counter at the bottom of your cart tracks the number of bonds you've added.

The registration on the bond I'm adding is different from the registration shown. What should I do?

If the registration shown is different from the registration on the bond you are now adding, click on "Select a Different Registration". Select the appropriate registration from your Registration List and click on "Select Registration". You're back to the "Add a Bond" page, and you can proceed as before. If the registration on the bond is not in your Registration List, click on "Add Registration".

I know I can have up to 50 bonds in a cart. How many carts can I have?

You can only add bonds to one cart at a time. After you click "Create a Manifest", the cart is emptied and you can add more bonds, if necessary. You create a new manifest with each cart of bonds you submit. Since each manifest is individually numbered, you can create as many manifests as you need in order to exchange all your paper bonds.

How do I create a manifest?

When you are finished adding bonds to a cart, click "Create a Manifest". Remember, you will not be able to add any more bonds to a cart once "Create a Manifest" is selected. A numbered manifest lists the bonds that you put in the cart. Print and sign the manifest. Mail the manifest and your bonds to the address shown. Please DO NOT sign the back of your bonds.

Once I create a manifest, can I add additional bonds to the manifest?

No, once you create a manifest, the cart for that manifest is complete and can't be reopened. You can, however, start a new cart.

Do I have to send my bonds and manifest by certified mail?

No, we do not require that you use certified mail.

If I change my mind, can I trade my electronic securities for paper bonds?

No, once your bonds are converted to electronic form, they can't be exchanged for paper bonds.

How soon before my bonds appear in my TreasuryDirect account?

After we receive your conversion request in our office, your bonds should appear in your TreasuryDirect Conversion Linked Account within 3 weeks unless we need additional information or evidence to complete the transaction. We will contact you if the transaction requires additional information or supporting evidence. More processing time may be required in these situations.

Will all my bonds be held up if one or two require additional information or evidence to process?

No, only those bonds that require additional information or evidence may require additional processing time.

Can I follow the progress of my conversion request?

Yes, to check the status of your bonds, click Manage Direct in your Conversion Linked Account, then select "View my manifests". The following updates may appear next to bonds on your manifest:

  • In Progress … We are processing your request.
  • Pending … We need additional information. You don't need to take any action until you are contacted.
  • Returned … The bond is ineligible for conversion and is being/was returned to you.
  • Not received … We did not receive the bond listed on the manifest. Customer Service will contact you.
  • Canceled … The bond was closed in a previous transaction. For example, an original bond was reported lost and it was replaced.
  • Converted … The bond has been converted. Check Current Holdings or the Gift Box in your Conversion Linked Account.

What happens when I convert a paper bond registered in my name alone, as co-owner, or as owner with a beneficiary?

When the exchange is approved, a security registered in the same manner as the paper bond is released to Current Holdings in your Conversion Linked Account.

What transactions can I conduct with the securities I trade in?

With two exceptions, you can conduct any transaction available for electronic securities. For a security registered in the names of two persons as co-owners, a transaction to remove the name of the other co-owner requires that individual's consent and, therefore, must be handled offline by us. Similarly, removing the name of the designated beneficiary of a Series E security requires that individual's consent and, therefore, must be handled offline by us.

Can I let another TreasuryDirect account holder see or cash my converted bonds?

In TreasuryDirect you can grant View and Transact rights. If the security is registered in your name alone, you can grant, and revoke at will, View rights to another TreasuryDirect account owner. A security registered to you as owner with a beneficiary allows you to grant, and revoke at will, View rights to the designated beneficiary only. However, if it is a Series E security with a beneficiary, you can only grant View rights to the designated beneficiary, and once granted, you can't revoke the rights. Similarly, you can grant View and Transact rights to the co-owner of a converted bond, but once granted, you can't revoke these rights. Co-owner registration securities with granted View rights may be edited to grant Transact rights but not from Transact to View.

What happens when I exchange a paper bond registered in the name of another person, including a minor?

When the exchange is approved, a security registered in the person's name is released to the Gift Box in your Conversion Linked Account (we consider any bond you've bought in someone else's name to be a gift). If the electronic security bears the Social Security Number of the owner, you can deliver it online to the recipient's TreasuryDirect account at any time. If the security does not bear the Social Security Number of the owner, we will assist you offline to complete the registration prior to delivery.

How do I deliver a converted gift security?

In order to deliver a converted gift security, the recipient must have a TreasuryDirect account. If the converted gift security bears the Social Security Number of the owner, you can deliver the security online to the recipient's TreasuryDirect account by selecting the security from the Conversion Linked Account Gift Box for delivery and following the delivery instructions. If the converted gift security does not bear the Social Security Number of the owner, please contact us for assistance in delivering that security to the recipient's TreasuryDirect account.

Will my electronic securities have the same issue date as the paper bonds I turn in?

Yes, each electronic security will have the same issue date and current redemption value as the paper bond you submitted.

Will my electronic securities earn the same rate of interest as my paper bonds?

Yes, paper bonds and electronic securities earn the same rate of interest based on series and issue date.

Will my electronic securities have the same maturity period as my paper bonds?

Yes, paper bonds and electronic securities have the same maturity period based on series and issue date.

Is the minimum holding period the same on electronic securities as paper bonds?

Yes, the minimum holding period is the same for electronic securities and paper bonds. The current minimum holding period is one year.

How do I redeem my bonds after they are exchanged?

You can schedule a full or partial redemption through your TreasuryDirect account in the same manner you request redemption of an electronic security originally purchased in TreasuryDirect.