How Do Bond Transfers Work?

Even though some investments are Non-Marketable Securities, meaning they cannot be sold on the free market, they still can be transferred from owner to owner in some situations. Bond Transfers always begin with completed forms and documents and end with the investments switching ownership.

The way Bond Transfers work, regardless of who issued the bond, which is through documentation to make them a legal transactions. US Savings Bonds are the most popular types of bonds and people may want to switch from person to person – for a variety of reasons.

One of the best places to begin this process of a Bond Transfer is through the official website of the US Treasury, called TreasuryDirect.  The individuals who are the original owners of the bonds first must know exactly what type of investment he/she would want to transfer and to whom. The original owner of the bond must be over 18 years of age, however he/she can set up a bond for a minor on a joint account and then complete some forms to get the bond transferred.

How a Bond Transfer works is not glamorous or exciting. It is just a basic process of filling out the proper documentation for switching ownership. These are non-marketable securities and cannot be sold on the open market, therefore, transferring is truly the only way these types of investments can move from owner to owner.

US Savings Bonds are directly linked to the owner’s social security numbers, thus making it virtually impossible to sell, or to do anything less than a legal trading activity. However, it is completely legal, as long as the proper paperwork is completed and the amount of the Bond Transfer does not exceed the annual legal purchase amount for such types of investments.