GCS Credit Union
618.797.7993
GCS is a full-service financial institution serving the following counties in Illinois: Sangamon, Logan, Macon, Marion, Jefferson, Perry, Jackson, Williamson, Jersey, Macoupin, Montgomery, Madison, Bond, Clinton, St. Clair, Monroe, Washington and Randolph.

What You Should Know About Purchasing and Redeeming U.S. Savings Bonds

Personal finance experts strongly recommend diversifying one’s portfolio of investments. U.S. savings bonds are ideal for investors who prefer strong risk management. Even if you’ve previously purchased U.S. savings bonds, you might be surprised at the modern upgrades they’ve received. Just like the way that credit union members have benefited from online banking, U.S. savings bond investors can now complete their transactions online.

Understanding Your Investment

When you purchase a U.S. savings bond, your investment is backed by the U.S. Treasury Department. Your interest will accrue monthly and compound semi-annually. Although you can redeem a savings bond any time after 12 months have passed, it’s financially prudent to wait until it matures to get the most out of your investment. The interest you earn on a U.S. savings bond is exempt from state and local taxes, and federal taxes are deferred until the date of maturity or the date of redemption. U.S. savings bonds are a very safe investment because they are all registered. Even if you decide to purchase paper bonds, they are replaceable if they become lost, stolen, or destroyed.

Purchasing U.S. Savings Bonds

With the shift toward electronic transactions, the only way to purchase paper bonds is with your federal tax return. When you file your federal tax return, submit IRS Form 8888. This allows you to purchase a Series I bond with your tax refund. It will be mailed to you. To purchase a savings bond electronically, you will need to open a TreasuryDirect account through the U.S. Treasury Department. You can use your TreasuryDirect account to purchase Series I or Series EE bonds. You are allowed to purchase up to $10,000 of each type every year.

Redeeming U.S. Savings Bonds

Electronic U.S. savings bonds are easily redeemed with your TreasuryDirect account. Authorize your redemption online and have the funds deposited into your credit union account. If you have paper bonds, take them to a credit union branch for redemption.

GCS Credit Union in O’Fallon offers a complete line of financial products and services to our members. You’re welcome to cash U.S. savings bonds at our credit union and to request financial guidance about how savings bonds fit into your wealth management strategy. Give us a call today at (618) 797-7993.

Hours

  • Monday 8:30am — 5:00pm
  • Tuesday 8:30am — 5:00pm
  • Wednesday 10:00am — 5:00pm
  • Thursday 8:30am — 5:00pm
  • Friday 8:30am — 6:00pm
  • Saturday 8:30am — 12:00pm