Where and how to cash your government bonds

You can cash government bonds at a bank, credit union, or directly through the U.S. Department of the Treasury. Most people use their own bank first because it's the fastest route — you walk in with the bond, show ID, and the teller processes it on the spot. If your bank won't cash it (some smaller institutions don't handle bonds), you can mail the bond to the Treasury or visit a Federal Reserve Bank branch in person.

The method depends on the bond type. Series EE and Series I bonds purchased after 2005 exist only in electronic form through TreasuryDirect, so you redeem them by logging into your account online — no physical bond to carry anywhere. Older paper bonds and any bond you hold in paper form must be cashed in person or by mail.

The Treasury processes mailed bonds within 15 business days if you send them to the address on the back of the bond. If you go to a Federal Reserve Bank branch, you'll get your money the same day, but you need to find a branch near you first — not every city has one.

Key Takeaways

  • Your own bank is usually the fastest way to cash a paper bond, as long as it handles savings bonds — call ahead if you're unsure.
  • Electronic bonds held in TreasuryDirect can be redeemed by logging into your account online without visiting anywhere in person.
  • If your bank won't cash the bond, you can mail it to the Treasury or visit a Federal Reserve Bank branch, though mailing takes 15 business days.
  • You'll need a valid government-issued ID to prove you're the owner or authorized representative when cashing in person.
  • Bonds redeemed before the final maturity date may have a penalty — check your bond's terms before you cash it.

What to bring when you cash a bond in person

Bring the bond itself and a valid government-issued ID — a driver's license, passport, or state ID card. If you're cashing someone else's bond as their authorized representative (a parent cashing a child's bond, for example), bring both your ID and a document showing you have authority to act on their behalf, such as a power of attorney or guardianship papers.

If the bond is registered in two names and both owners must sign to cash it, both people need to be present with ID. If only one owner is present, that owner can sign and cash the bond alone — the registration doesn't require both signatures to redeem, only to transfer ownership.

For mailed bonds, sign the back of the bond in front of a bank officer, notary public, or other authorized official (the Treasury website lists who qualifies). Mail the signed bond and a copy of your ID to the Federal Reserve Bank address shown on the bond. Don't send the original ID — send a copy.

How penalties work if you cash early

Series EE and Series I bonds have a penalty for early redemption if you cash them before five years have passed. The penalty is the loss of the last three months of interest — so if you've held the bond for four years and nine months, you lose the interest you would have earned in months 57, 58, and 59. After five years, there is no penalty no matter when you cash.

Other bond types have different rules. Series HH bonds, for example, cannot be redeemed before 20 years except in specific circumstances (death of the owner, for instance). Check the bond's issue date and type before you cash it so you know whether a penalty applies.

The Treasury or your bank will calculate the penalty and subtract it from your payout automatically — you don't have to do the math yourself. The amount you receive will be the current value minus the three-month interest penalty if applicable.

What happens to the money after you cash

If you cash at your bank, the money goes into your account the same day or within one business day, depending on the bank's processing time. If you mail the bond to the Treasury, they send you a check within 15 business days of receiving it. If you cash at a Federal Reserve Bank branch, you can receive the money as a check or, at some branches, as a direct deposit to your bank account.

The amount you receive is the redemption value of the bond on the date you cash it, not the face value printed on the bond. For Series I bonds, the redemption value includes all the interest earned since purchase. For Series EE bonds, the value is half the face value at purchase plus all interest earned, or the face value if the bond has reached final maturity.

You'll receive a Form 1099-INT from the Treasury or your bank showing the interest portion of what you cashed. This is taxable income in the year you redeem the bond, so keep the form for your tax records.

Cashing bonds held in TreasuryDirect online

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to "Manage My Securities" and select the bond you want to redeem. Click the redeem option and confirm the transaction. The money will be deposited into the bank account linked to your TreasuryDirect account within two business days.

You can redeem electronic bonds any time after you've held them for one month — there's no waiting period like there is for paper bonds. If you redeem before five years, the three-month interest penalty still applies to Series EE and Series I bonds, just as it does for paper bonds.

If you've forgotten your TreasuryDirect login, use the "Forgot Username" or "Forgot Password" link on the login page. You'll need to verify your identity using your Social Security number and other personal information. If you can't regain access, call the TreasuryDirect customer service line at 844-284-2676.

Mailing a bond to the Treasury

Sign the back of the bond in front of a notary public or authorized official. Include a letter stating your name, address, Social Security number, the bond's series and issue date, and the amount you want to redeem. Attach a copy of your ID to the letter. Do not send the original ID or the original bond certificate in the same envelope — if the mail is lost, you lose both.

Mail the signed bond, your letter, and the ID copy to the Federal Reserve Bank address printed on the back of the bond. Different regions have different addresses, so check your bond before you mail. Include your bank account information if you want the Treasury to deposit the money directly instead of sending a check.

The Treasury will send you a check or direct deposit within 15 business days of receiving your package. Keep a copy of your letter and take a photo of the bond before you mail it, in case you need to prove you sent it.

What to do if you've lost a bond or it's damaged

If you've lost a paper bond, contact the Treasury's Savings Bond Division at 844-284-2676 or visit treasurydirect.gov. You'll need to provide the bond's series, denomination, and issue date if you have them. The Treasury can search their records and may be able to issue a replacement or process a claim.

If the bond is damaged but still readable, most banks will still cash it. If it's too damaged to read or verify, the Treasury can examine it and determine whether it's genuine. Mail the damaged bond with a letter explaining what happened to the Federal Reserve Bank address on the bond.

For electronic bonds in TreasuryDirect, there's no physical bond to lose. If you lose access to your account, you can regain it by verifying your identity online or by calling customer service.

Frequently Asked Questions

Can I cash a bond before the maturity date?

Yes. Series EE and Series I bonds can be cashed anytime after one month of ownership, though you'll lose the last three months of interest if you cash before five years have passed. Other bond types have different rules — some cannot be cashed early at all. Check your bond's terms.

What if the bank says it won't cash my bond?

Not all banks handle savings bonds. Call ahead and ask whether they cash Series EE, Series I, or whatever type you hold. If yours won't, try another bank in your area, visit a Federal Reserve Bank branch, or mail the bond to the Treasury.

Do I have to pay taxes on the interest when I cash the bond?

Yes. The interest portion of what you receive is taxable income in the year you redeem the bond. You'll receive a Form 1099-INT showing the interest amount. You can report this on your federal tax return.

How long does it take to get my money after I cash the bond?

Same-day or next business day at a bank, same day at a Federal Reserve Bank branch, or 15 business days if you mail it to the Treasury. Electronic bonds redeemed through TreasuryDirect are deposited within two business days.

Can I cash a bond that's registered in someone else's name?

Only if you have legal authority to act on their behalf, such as power of attorney or guardianship. Bring the authorization document along with your ID. If the bond is registered in two names, either owner can cash it alone.