Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether your bond is a paper certificate or held electronically in the Treasury's system.

If you have a physical paper bond, take it to any bank or credit union where you have an account. Most will cash it the same day. If you don't have an account there, some banks will still cash it but may charge a fee or require you to open one. Call ahead to confirm their policy.

If your bond is registered electronically in TreasuryDirect (the Treasury's online system), you must redeem it through your TreasuryDirect account online. You cannot walk into a bank with an electronic bond because the bank has no way to verify it exists.

Key Takeaways

  • Paper savings bonds can be cashed at any bank or credit union, usually the same day you bring them in.
  • Electronic bonds held in TreasuryDirect must be redeemed through your online account; banks cannot process them.
  • You must wait until a bond reaches final maturity or past the initial holding period before cashing it, or you will lose recent interest.
  • The Treasury withholds federal income tax on the interest portion of your bond unless you provide a tax ID or exemption certificate.
  • Cashed bonds are reported to the IRS, and you owe federal income tax on all interest earned, even if it was not withheld.

When you can cash a savings bond without penalty

Series EE and Series I bonds (the most common types) have a minimum holding period of one year. You cannot cash them before one year has passed, even if you need the money urgently. If you try, the bank will refuse.

If you cash a bond between one year and five years after purchase, you lose the last three months of interest. For example, if you bought a bond in January 2020 and cash it in March 2023, you receive interest only through December 2022, not March 2023. This is not a penalty imposed by the Treasury — it is how the interest accrual works on these bonds.

After five years, you can cash the bond anytime without losing interest. The bond continues to earn interest for up to 30 years, so you do not have to cash it as soon as you are allowed to.

What to bring when you cash a paper bond

Bring the physical bond certificate and a valid photo ID to your bank or credit union. That is all you need in most cases. The teller will verify the bond's serial number, check that it has reached the minimum holding period, and process the cash or deposit.

If the bond is registered in someone else's name and you are cashing it on their behalf, you will need a power of attorney or written authorization from the owner, plus your ID. If the owner has died, the bank will ask for a death certificate and may require probate documents depending on the bond's value and your state's law.

If you have lost the physical certificate, you cannot cash it at a bank. You must contact the Treasury directly through TreasuryDirect or by mail to request a replacement or redemption. This process takes several weeks.

How to redeem a bond in TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the bond you want to redeem.

Click "Redeem" and confirm the amount. The Treasury will deposit the proceeds into the bank account you have on file with TreasuryDirect within two business days. You cannot receive a check or cash withdrawal — the money goes only to your linked bank account.

If you do not have a TreasuryDirect account and your bond is registered there, you will need to create one. You can do this online using your Social Security number and a valid ID. If you cannot remember your login or have lost access to the email address associated with your account, contact the TreasuryDirect customer service line at 844-284-2676.

Tax withholding and reporting

When you cash a savings bond, the bank or Treasury withholds federal income tax on the interest portion unless you provide a tax exemption certificate. The withholding rate is usually 24 percent of the interest earned.

To avoid withholding, you can provide Form W-9 (Request for Taxpayer Identification Number and Certification) or Form W-8BEN (if you are a nonresident alien) before the bond is cashed. Ask the bank or check your TreasuryDirect account settings to see if you have already provided this information.

Regardless of whether tax was withheld, you must report the interest on your federal income tax return. The Treasury reports the redemption to the IRS, and you will receive a Form 1099-INT in January of the following year showing the interest earned. You owe income tax on that interest at your ordinary tax rate, even if you did not owe federal income tax overall that year.

What happens if you cash a bond early

If you cash a bond before it reaches one year of age, the bank will refuse the transaction. You must wait the full year. There is no exception to this rule, even in a financial emergency.

If you cash between one and five years, you forfeit the last three months of interest accrued. This is not optional — the bank cannot override it. For example, a bond purchased on June 15, 2022, cashed on August 1, 2023, would pay interest only through March 15, 2023.

If you need money before your bond reaches one year, consider whether you have other savings or credit options. Some people keep savings bonds specifically as a long-term holding and maintain a separate emergency fund for unexpected expenses.

Cashing bonds owned by a minor

If a bond is registered in a child's name, a parent or legal guardian can cash it by bringing the bond, their own ID, and the child's ID (if the child is present) or birth certificate (if the child is not present). The bank will deposit the proceeds into an account in the child's name or the parent's name, depending on the bank's policy.

If the bond is registered in the parent's name but purchased for the child's benefit, the parent can cash it without the child present. The parent is the legal owner and can redeem it anytime.

Cashing a bond in a child's name has tax implications. The interest is reported to the IRS under the child's Social Security number, and you may be able to report it on the child's tax return instead of your own if the child's income is below the filing threshold. Consult a tax professional if the bond earned significant interest.

Frequently Asked Questions

Can I cash a savings bond at any bank, or only the one where I have an account?

Most banks will cash a savings bond even if you do not have an account there, though some may charge a fee or require you to open one. Credit unions are often more flexible. Call ahead to confirm the bank's policy before you go in.

What if my savings bond is damaged or the serial number is hard to read?

Bring it to your bank anyway. Banks can often read faded or worn bonds using their equipment. If the bank cannot process it, contact the Treasury directly at treasurydirect.gov or by mail to request a replacement or redemption.

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

At a bank, you usually receive the cash or deposit the same day. With TreasuryDirect, the money reaches your linked bank account within two business days of redemption.

Do I have to report the interest from a cashed savings bond on my taxes?

Yes. You owe federal income tax on all interest earned, whether or not tax was withheld when you cashed it. The Treasury reports the redemption to the IRS, and you will receive a Form 1099-INT showing the interest amount.

Can I cash a savings bond if it is in someone else's name?

Only if you have legal authority: a power of attorney from the owner, written authorization, or proof that you are the executor of their estate. Bring these documents and your ID to the bank.