$50 savings bond and series ee and redemption

At the June 2005 National Senior Spelling Bee in Cheyenne (WY), the Rev. Robert Miskimen, convener of the Bee, proudly announced that the prize money for winners would increase. This was because a "generous" donation had been given to the Bee from someone who wanted to remain anonymous, and the Bee officials decided to pass on the largesse to the winners. They decided that only the first and second-place winners would split the extra prize money.

That wasn't the only motivation I needed to try to do my best at the Bee, but it was helpful. Well, I was fortunate enough to place 2nd and thus receive 50% of this extra donation. Then, Rev. Bob made a second announcement--that this money was not yet received but would come to the winner (Dave Riddle) and myself in the mail with our other check, the standard amount for placing first and second ($100/$50). I was almost giddy with enthusiasm, imagining that the other check I would get in the mail would more than cover the cost of my vacation to Cheyenne. But when the "check" came late in July it was, in fact, not a check but a US Savings Bond. And, the face amount on the bond was $50.

Holding Onto the Bond

I don't know when was the previous time that I had a US Savings Bond in my possession, but it was probably in the 1950s or 1960s. I think my parents were big on buying these bonds as we boys were in our first years, but they seemed to fade out of my memory and my family's experience sometime in the early 1960s. So, here I was, holding in my hands a $50 EE Series Savings Bond. I wasn't really disappointed, but I think my reaction was something like--'Well, you shouldn't have.." Nevertheless, I put the $50 Savings Bond on my bureau to cash at the bank next time I went there.

When I proudly produced the $50 Bond for redemption the next time I was at my local branch, the teller told me that it couldn't be redeemed. Why not, I asked? Well, because its redemption date wasn't until the first anniversary of its issuance. I guess I vaguely knew that this was the way the Bond worked, but I had obviously forgotten the particulars. So, here I was, with a $50 Savings Bond which I wanted to cash but couldn't. I guess that if I possed the "pioneer values" that the Bond-world presupposed, I would have eagerly put it in my safe deposit box and just let that baby grow. But I didn't. I decided to put it in my check book so I could really cash in big time when the maturity date came (sometime in July 2006).

But keeping the Bond loose in my checkbook actually began to cause me more problems than it was worth. On more than one occasion it fell out when I opened the check register. I recall that sometime in the Winter I went to my health care provider to pay a bill and then, about an hour later, received a frantic call from the provider. I wasn't available when the call came. When I returned home and got my phone messages I was told that it was urgent that I get in touch with my health provider. Fearing the worst, I breathlessly called them. Maybe they had found some strange and hitherto undiscovered kind of cancer in me. Maybe they were cancelling coverage. A thousand thoughts, each more ominous than the last, filled my mind as I called the clinic. Then, when I got in touch with the woman who placed the call, she informed me that they had discovered a Savings Bond with my name on it that I appeared to have left behind when I was at the clinic, and they wanted to inform me that they had it. I was never so relieved in my life--not because they had the Bond but because it was only that they had the bond. I began to see that winning this special prize was perhaps costing me more than it was worth.

Redemption

I decided that the best thing I could do was to cash in the Bond as soon as it matured. At least, I thought, I would have $50+ jingling around in my pocket. Indeed, if the interest rate was good, I thought, it might just about pay for the guy who cleans my house. So, with renewed anticipation I went to my bank today to redeem it. I signed over the Bond, having to give all kinds of personal information to the teller (indeed, this was quite a transaction, as the teller had to write down tons of information from my Driver's License--I think teller's today spend most of their time writing down numbers. They should have some kind of scanner for this, don't you think?). Finally, he looked up at me, after checking out some numbers on his screen, and said, "Mr. Long, we owe you $25.82." Huh? Then it was explained to me (actually the teller explained the Bond incorrectly, but another teller came to rescue him from his mistake). When the "generous" donor had bought the bonds in 2005, he had paid 50% of the face value. Thus, the donor shelled out $25 for my bond and $25 for the winner's bond. I don't know when interest began to accrue, or what the interest rate was, but I got a whopping $.82 for sitting on the Bond. And, just think, if I held onto it for another decade or more I could get the complete face value of the instrument. But, alas, my patience had been exhausted. I just wanted my $25.82. And so, I got it, but now it isn't enough to pay off my cleaning guy or the guy who mows the lawn or almost anybody for any task. I guess I will save it for a really big date...

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