Where to cash your savings bonds

You can cash US savings bonds at most banks and credit unions, or directly through the US Department of the Treasury if your financial institution will not redeem them. Banks do not have to cash bonds they did not issue, so call ahead before you go in. If your bank declines, the Treasury's Bureau of the Fiscal Service will cash them by mail or through TreasuryDirect, the online platform where you hold electronic bonds.

For paper bonds, bring the physical bond certificate and a valid ID. For electronic bonds held in TreasuryDirect, you initiate the redemption online and the money goes to your linked bank account within one to three business days. If you have lost a paper bond, the Treasury can issue a replacement, but the process takes several weeks and requires proof of ownership.

Some credit unions and smaller banks may charge a small fee to redeem bonds they did not sell you originally. Large national banks typically redeem without charge. Ask about fees when you call.

Key Takeaways

  • Paper bonds can be cashed at most banks and credit unions, but call first because institutions are not required to redeem bonds they did not issue.
  • Electronic bonds in TreasuryDirect are redeemed online and the money reaches your bank account in one to three business days.
  • You must hold a Series EE or I bond for at least one year before you can redeem it, and redeeming before five years have passed costs you the last three months of interest.
  • The Treasury will cash bonds by mail if your bank refuses, though the process takes longer than in-person or online redemption.
  • You will receive a 1099-INT form at tax time if your bond earned more than ten dollars in interest during the year.

Minimum holding periods and interest penalties

You cannot cash a Series EE or Series I bond until you have owned it for at least one year. If you redeem before five years have passed, you lose the last three months of interest earned. This penalty applies to both paper and electronic bonds.

For example, if you bought a Series I bond on January 15, 2023, you could not redeem it until January 15, 2024. If you redeemed it on March 1, 2024, you would receive interest only through November 30, 2023 — the last three months of your actual holding period would not be paid out.

If you hold the bond for five years or longer, you receive all interest earned with no penalty. After 30 years, Series EE bonds stop earning interest and should be redeemed. Series I bonds stop earning interest after 30 years as well.

What happens to the interest you earned

When you redeem a bond, you receive the face value plus all accrued interest, minus the three-month penalty if you redeemed before five years. The interest is taxable income in the year you cash the bond, even if you bought it many years earlier.

You have two choices for when to report the interest: you can report it all in the year you redeem the bond, or you can report it each year as it accrues (called the accrual method). Most people report it when they redeem because it is simpler. If you choose the accrual method, you must use it for all your savings bonds going forward and stick with it.

If the interest earned in a single year exceeds ten dollars, you will receive a 1099-INT form from the Treasury in January. Use this form when you file your taxes. If you earned ten dollars or less, you still owe tax on it, but the Treasury does not issue a 1099-INT.

Redeeming bonds through TreasuryDirect

Log into your TreasuryDirect account and navigate to the "Manage My Securities" section. Select the bond you want to redeem and choose the redemption date. You can redeem when ready or schedule it for a future date. The money will be deposited into the bank account linked to your TreasuryDirect account.

TreasuryDirect only holds electronic bonds — Series I bonds and Series EE bonds purchased after 2003. If you have paper bonds, you cannot redeem them through TreasuryDirect. You must take them to a bank or mail them to the Treasury.

If you do not have a TreasuryDirect account and want to set one up, you will need a Social Security number, email address, and a US bank account. The account takes about one business day to open.

Mailing bonds to the Treasury

If no bank will redeem your bonds, you can mail them directly to the Bureau of the Fiscal Service. Send your bonds, a completed FS Form 1522 (the redemption request form), and a copy of your ID to the address listed on the Treasury website. Include a letter stating your name, Social Security number, and the amount you expect to receive.

Mail your package to the address for your region — the Treasury has different processing centers depending on where you live. Include tracking or send it certified mail so you have proof of delivery. Processing takes four to six weeks from the date the Treasury receives your package.

The Treasury will mail you a check or deposit the funds directly to your bank account if you provide account information on the form. Direct deposit is faster and safer than waiting for a check.

Redeeming bonds held in someone else's name

If you are the named owner on a bond, you can redeem it. If someone else is the owner and you are listed as a beneficiary, you cannot redeem it while the owner is alive — only the owner can do that. After the owner dies, you can redeem the bond as part of the estate.

If a bond is registered as "owner or beneficiary," either person can redeem it without the other's permission. Check the bond certificate to see how it is registered. The registration is printed on the front of paper bonds or shown in your TreasuryDirect account for electronic bonds.

If you are redeeming a deceased person's bonds as their executor or heir, bring a death certificate and proof of your authority to act on behalf of the estate. The bank or Treasury will tell you what documents they need.

What to do if you cannot find your bond

If you have lost a paper bond, contact the Treasury's Bureau of the Fiscal Service. You will need to provide the bond's series, denomination, and serial number if you have it. If you do not have that information, provide as much detail as you can remember about when and where you bought it.

The Treasury can search its records and issue a replacement bond if they find a match. This process takes several weeks. You will need to sign a statement under penalty of perjury saying the bond is lost and that you are the rightful owner.

For electronic bonds in TreasuryDirect, you cannot lose them because they exist only in your online account. If you forget your password, you can reset it through the TreasuryDirect website.

Frequently Asked Questions

Can I cash a savings bond before one year has passed?

No. All US savings bonds must be held for at least one year before you can redeem them. If you need the money sooner, you cannot access it through the bond.

What if I cash my bond before five years — do I lose all the interest?

No, you keep most of the interest. You lose only the last three months of interest earned. If you held the bond for four years and eleven months, you would receive interest for four years and eight months.

Do I have to pay income tax on the interest when I redeem?

Yes. The interest is taxable income in the year you redeem the bond. You can choose to report it all at once when you cash it, or report it each year as it accrues — but you must pick one method and stick with it for all your bonds.

How long does it take to get my money after I redeem?

At a bank or credit union, you usually get cash or a check the same day. Through TreasuryDirect, the money reaches your bank account in one to three business days. By mail to the Treasury, allow four to six weeks from the date they receive your package.

Can I redeem someone else's savings bond?

Only if you are the registered owner or if the bond is registered as "owner or beneficiary" and you are the beneficiary. If someone else is the sole owner, only they can redeem it while they are alive.