Where to cash your savings bonds

You can cash savings bonds at most banks and credit unions, even if you don't have an account there. Walk in with the bond itself and a valid photo ID — a driver's license, passport, or state ID card all work. The teller will verify the bond, check that you're the registered owner or an authorized person, and give you the cash or deposit it into an account you name.

If you prefer not to visit a branch in person, you can cash Series I and Series EE bonds through the TreasuryDirect website (treasurydirect.gov). You'll need to set up an account, link your bonds to it, and request the redemption online. The money goes directly to your bank account within a few business days. Series HH bonds cannot be redeemed through TreasuryDirect — those must go through a bank or credit union.

The Federal Reserve also processes bond redemptions by mail if you send the bond and a form to a Federal Reserve Bank, though this route takes longer and is less common now that online redemption exists.

Key Takeaways

  • Most banks and credit unions will cash your savings bond on the spot if you bring the physical bond and a photo ID, regardless of whether you have an account there.
  • Series I and Series EE bonds can be redeemed online through TreasuryDirect without visiting a bank, with funds deposited to your account in a few business days.
  • You must wait at least one year from the issue date before cashing any savings bond, and bonds cashed before five years will lose the last three months of interest.
  • The bond's current value is printed on the back or available through TreasuryDirect, so you'll know exactly how much you're receiving before you cash it.

Timing rules: when you can cash a bond

Savings bonds have a one-year holding period. You cannot cash a bond before one year has passed from its issue date, even if you need the money urgently. If you try to cash it early, the bank will refuse.

If you cash a bond between one year and five years after issue, you lose the last three months of interest. For example, if you cash a bond at year 2, you receive interest only through month 21, not month 24. After five years, you keep all accrued interest no matter when you cash it. This penalty applies to Series EE and Series I bonds. Series HH bonds work differently — they pay interest every six months and have no early-redemption penalty.

The bond's issue date is printed on the front. Count forward from that date to know when you're may be able to access and whether you'll take a penalty.

Finding your bond's current value

Before you cash a bond, you need to know what it's worth. For bonds you own through TreasuryDirect, log into your account and the current value appears on your holdings page — it updates monthly on the first business day.

For physical bonds you hold in paper form, the value is printed on the back of the bond itself. If the printing is faded or you can't read it, you can look up the value on the TreasuryDirect website even if you don't have an online account. Go to the Savings Bond Calculator, enter the bond series, denomination, and issue date, and it will show you the current redemption value.

The bank teller will also tell you the value when you arrive to cash it, so you don't have to calculate it yourself. They'll look it up in their system before handing you the money.

What to bring to the bank

Bring the physical bond and one form of photo identification. A driver's license, state ID, or passport all work. If the bond is registered in someone else's name but you're authorized to cash it — for instance, you're a parent cashing a bond issued to a minor child — bring both your ID and documentation showing your authority, such as a birth certificate or guardianship papers.

If the bond is registered to two people (with "and" between the names), both people must be present to cash it, or one person must bring a notarized power of attorney from the other. If the bond says "or" between two names, either person can cash it alone.

Call the bank ahead if you're unsure whether they cash savings bonds. Most do, but some smaller branches or credit unions may direct you elsewhere or ask you to come during specific hours.

Cashing bonds through TreasuryDirect online

If your bonds are already in a TreasuryDirect account, redemption takes a few clicks. Log in, go to your holdings, select the bond you want to cash, and choose "Redeem." You'll confirm the amount and the bank account where you want the money sent. The redemption processes within one to three business days, and the funds appear in your account shortly after.

If you have a physical bond and want to use TreasuryDirect instead of a bank, you'll need to set up an account first. You can create one at treasurydirect.gov using your Social Security number and a valid email address. Once your account is open, you can link your physical bonds to it — this process takes a few days — and then redeem them online.

TreasuryDirect redemptions are free and don't require you to visit a branch, which makes this option convenient if you prefer to handle everything from home.

Tax reporting when you cash a bond

The interest you earn on savings bonds is subject to federal income tax, but not state or local income tax. When you cash a bond, the interest is taxed in the year you redeem it, not in the years you held it. This means if you cash a bond that earned $500 in interest over five years, you report that $500 as income on your tax return for the year you cashed it.

The bank does not send you a tax form when you redeem a bond — you're responsible for reporting the interest yourself. To calculate the interest, subtract the bond's original purchase price from the amount you received. If you bought a $50 Series EE bond for $25 and cashed it for $52, your interest is $27.

If you cashed bonds for education expenses and meet certain income limits, you may be able to exclude some or all of the interest from your taxable income under the Education Savings Bond Program. This requires filing Form 8815 with your tax return. A tax professional can help you determine whether you may have access to.

What happens if a bond is lost or damaged

If your physical bond is lost, stolen, or damaged beyond recognition, you can request a replacement through TreasuryDirect or by contacting the Bureau of the Fiscal Service. You'll need to provide proof of ownership — typically the bond's serial number, issue date, and denomination — and file a claim. The process can take several weeks.

If the bond is damaged but still readable, most banks will still cash it. Bring it in and let the teller know about the damage. They may require you to sign a statement confirming the bond's details, but they'll usually process it.

If you suspect a bond was stolen, report it to the Treasury Department when ready. They can flag it in their system to prevent someone else from cashing it.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but not all branches do it regularly. Call ahead to confirm, especially if you're going to a smaller branch or a bank where you don't have an account. Some credit unions may limit redemptions to members only, so check their policy first.

What if I lost the physical bond but have the serial number?

Contact the Bureau of the Fiscal Service or use TreasuryDirect to report the loss and request a replacement. You'll need to provide the serial number, issue date, and denomination. The replacement process takes time, so start it as soon as you realize the bond is missing.

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

Yes, the interest is subject to federal income tax in the year you cash the bond. You report it on your tax return. State and local taxes do not explore to savings bond interest. If the bond was used for education, you may be able to exclude some interest under specific rules — consult a tax professional to see if you may have access to.

Can someone else cash my bond if I give them permission?

Only if the bond is registered in their name or if you provide a notarized power of attorney. Banks will not cash a bond based on verbal permission or a casual note. If the bond says "or" between two names, either person can cash it alone without the other's consent.

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

At a bank branch, you get cash or a deposit on the spot. Through TreasuryDirect online, the money reaches your bank account within one to three business days. By mail through the Federal Reserve, it takes two to three weeks.