POD stands for "Payable on Death" and names who gets your bond if you pass away

A POD designation on a savings bond is an instruction you write into the bond itself that says who receives the money when you die. It bypasses your will and probate court. The person you name — called the POD beneficiary — can claim the bond directly from the Treasury Department by submitting a death certificate and a claim form. No lawyer needed, no waiting for a will to be read.

You can add a POD beneficiary when you first buy the bond, or you can change it later. The bond stays in your name and under your control while you are alive. You can cash it in whenever you want, change the beneficiary, or remove the POD designation entirely. The person you name has no claim to the money until you die.

POD is one of the simplest ways to make sure money goes to a specific person without the delays and costs of probate. It works the same way whether the bond is a Series EE, Series I, or any other type the Treasury sells.

Key Takeaways

  • POD means the bond automatically transfers to the person you name when you die, without going through probate court.
  • You name the POD beneficiary on the bond purchase form or by filing a change form with the Treasury Department later.
  • The beneficiary has no access to the bond while you are alive, even if they are named.
  • You can change or remove the POD beneficiary at any time by submitting a form to TreasuryDirect.
  • The beneficiary claims the bond by sending a death certificate and a claim form to the Treasury Department.

How to name a POD beneficiary when you buy a bond

When you open an account on TreasuryDirect (the Treasury's online platform where you buy bonds), you will see a field for beneficiary information during account setup. You can name one person or multiple people. If you name more than one, you specify what percentage each person receives — for example, 50% to your spouse and 50% to your adult child.

You will need the beneficiary's full legal name, date of birth, and Social Security number or tax ID. The Treasury uses this information to identify the correct person when the time comes. You do not need the beneficiary's permission to name them, and they do not need to know you have done so.

If you are buying paper bonds through a bank or credit union instead of online, ask the teller whether that institution lets you name a POD beneficiary at purchase. Not all do. If the bank does not offer it, you can add a beneficiary later by contacting TreasuryDirect directly.

Changing or removing a POD beneficiary after you buy the bond

You can change your mind about who you named, or remove the POD designation entirely. Log into your TreasuryDirect account, find the bond in your portfolio, and look for the option to edit beneficiary information. The change takes effect immediately once you submit it.

If you do not have a TreasuryDirect account — for instance, if you bought paper bonds years ago — you will need to contact the Treasury Department directly. Call 1-844-284-2676 or mail a written request to the address on the Treasury's website. Include the bond serial number, your name, and the new beneficiary information. The process takes longer by mail, so phone is faster if you need the change done quickly.

You might want to change a beneficiary if you get divorced, if your circumstances shift, or if the person you named has died. There is no limit to how many times you can make changes.

What happens to the bond when you die

When you pass away, your beneficiary (or beneficiaries) will need to contact the Treasury Department to claim the bond. They will submit a claim form — Form PD 1782 — along with a certified copy of your death certificate. The Treasury will verify the information and transfer the bond to the beneficiary's name, or pay out the value if that is what the beneficiary requests.

The beneficiary does not automatically receive the money. They have to take the step of filing the claim. This usually takes a few weeks. The bond continues to earn interest up until the date of your death, so the beneficiary receives the full value including all accrued interest.

If you named multiple beneficiaries with percentages, each one receives their share. If you named one beneficiary and they have also passed away, the bond becomes part of your estate and goes through probate — which is why some people name a second or backup beneficiary.

POD versus naming someone in your will

A POD designation and a will instruction are two different paths to the same goal. A will goes through probate court, which can take months or longer depending on the state and the complexity of your estate. A POD beneficiary skips probate entirely and can claim the bond within weeks.

POD is also private. A will becomes a public record once it is filed with the court. A POD designation stays between you and the Treasury Department. If you want to keep your financial arrangements confidential, POD is the better choice.

You can have both. You might name a POD beneficiary on your savings bonds and also mention those bonds in your will as a backup. If the POD beneficiary is still alive when you die, the POD designation takes priority and the will instruction is ignored. If the POD beneficiary has died, the bond falls back to your estate and the will controls what happens to it.

POD beneficiaries and taxes

The person who receives your bond through a POD designation still owes income tax on the interest the bond earned. If the bond is a Series I bond or Series EE bond, the interest has been building up over the years. That interest is taxable income to the beneficiary in the year they receive the bond.

The Treasury will send a tax form (Form 1099-INT) to the beneficiary showing how much interest was earned. The beneficiary reports this on their tax return. The original purchase price of the bond is not taxable — only the interest is.

If you bought the bond with education savings in mind and used it for may have access to education expenses, there may be a tax break available, but that is a separate rule from the POD designation itself. The beneficiary should consult a tax professional if they are unsure how to report the income.

Frequently Asked Questions

Can I name a minor as a POD beneficiary?

Yes, but the Treasury will not release the money to a minor directly. When the minor turns 18, they can claim the bond themselves. If they are still under 18 when you die, the money goes into a custodial account or is held until they reach the age of majority in your state. You may want to name an adult custodian instead to manage the money until the minor is old enough.

What if I name someone as POD but they refuse to take the bond?

A beneficiary can decline to claim the bond. If they do, the bond becomes part of your estate and is distributed according to your will or your state's intestacy laws. You cannot force someone to accept a POD designation, but you can name a backup beneficiary to prevent this situation.

Does naming a POD beneficiary affect my ability to cash the bond?

No. You have complete control over the bond while you are alive. You can cash it in at any time, change the beneficiary, or remove the POD designation. The beneficiary's name on the bond does not give them any rights until you die.

Can I name my estate as a POD beneficiary?

No. A POD beneficiary must be a person. If you want the bond to go through your estate and be distributed according to your will, simply do not name a POD beneficiary. The bond will automatically become part of your estate when you die.

What if I get divorced — does the POD beneficiary change automatically?

No. Divorce does not automatically remove a spouse from a POD designation on a savings bond. You must file a change form with the Treasury Department to remove or replace them. Some states have laws that void a POD designation to an ex-spouse in other accounts, but savings bonds are federal instruments, so you should update it yourself to be certain.