The basic steps to redeem a savings bond

To redeem a savings bond, you take it to a bank or credit union where you have an account, sign the back in front of a teller, and they deposit the money into your account or give you cash. That's the core transaction. The teller verifies the bond is genuine, checks that you're the owner or an authorized representative, and processes the redemption on the spot — most banks complete it the same day.

You don't need to contact the U.S. Treasury directly. Your bank handles the redemption and sends the paperwork to Treasury's Financial Agent on your behalf. The amount you receive is the bond's current value, which the bank can look up using the bond's serial number and series.

The process takes longer if you've lost the physical bond or if you're redeeming on behalf of someone else (like a deceased owner's estate). In those cases, you'll need to contact the Treasury Department directly or work with a bank that handles more complex redemptions.

Key Takeaways

  • Bring your savings bond to any bank or credit union where you have an account, sign it in front of a teller, and they will redeem it the same day.
  • Series EE and I bonds can be redeemed one year after purchase, but you'll lose the last three months of interest if you cash them in before five years.
  • The bank looks up your bond's current value using its serial number and series letter, so you don't need to calculate anything yourself.
  • If you've lost the bond or are redeeming for a deceased owner, contact the Treasury Department's Bureau of the Fiscal Service instead of going to a bank.
  • You'll receive a 1099-INT form from Treasury the following January if your bond earned more than $10 in interest during the year.

What you need to bring to the bank

Bring the physical bond itself and a valid photo ID. The teller will need to see that the bond is in your name or that you're listed as a co-owner or authorized representative. If someone else is redeeming the bond on your behalf — a spouse, adult child, or power of attorney — they'll need their own ID plus documentation showing they have the right to act for you.

If the bond is registered to a minor and a parent or guardian is redeeming it, bring the minor's birth certificate or Social Security card along with the parent's ID. Banks vary slightly in what they accept, so call ahead if you're unsure whether your documents will work.

You do not need to bring the original purchase receipt or any paperwork from Treasury. The bond itself and your ID are sufficient for a straightforward redemption.

When you can redeem and what penalties explore

Series EE and Series I bonds can be redeemed one year after the issue date. If you redeem before five years have passed, you lose the last three months of interest — so if you cash in a bond at year two, you only receive interest through month 21, not month 24. After five years, there is no penalty.

Series HH bonds (no longer sold but still held by many people) have different rules: they can be redeemed six months after purchase, and there's a six-month interest penalty if you redeem before five years.

The value the bank pays you includes all accrued interest up to the redemption date, minus any applicable penalty. You don't have to do any math — the teller looks up the exact amount owed.

Redeeming bonds registered to a deceased owner

If the bond owner has died, you cannot redeem it at a bank. Instead, contact the Treasury Department's Bureau of the Fiscal Service by mail or through their website. You'll need to submit the bond itself, a certified copy of the death certificate, and proof that you have the legal right to the bond (such as letters testamentary if you're the executor, or a court order).

The process takes several weeks. Treasury will verify your claim, calculate the final value including accrued interest, and send you a check. If the bond is part of an estate, the interest earned may be taxable to the estate rather than to you personally, so coordinate with the estate's tax preparer.

Do not try to forge the deceased owner's signature or redeem the bond without going through Treasury. Banks will refuse to process it, and Treasury has systems to catch unauthorized redemptions.

Lost or damaged bonds

If you've lost the bond or it's too damaged to read, you'll need to file a claim with Treasury's Bureau of the Fiscal Service. You'll provide the information you remember — the series, denomination, approximate issue date, and the owner's name — and Treasury will search their records to locate it.

The process requires you to sign an affidavit stating that the bond is lost or destroyed and that you are the owner. Treasury may ask for additional proof of ownership, such as old purchase confirmations or bank statements showing the purchase. Once they verify the bond in their system, they can issue a replacement or process a redemption directly.

This takes longer than a standard bank redemption — typically four to eight weeks — because Treasury has to search their database and verify your identity by mail.

Tax reporting and what happens after redemption

When you redeem a savings bond, you owe federal income tax on the interest earned, not on the principal (the amount you originally paid). You do not pay tax at the time of redemption; instead, you report it on your tax return for the year you cash it in.

If the bond earned more than $10 in interest during the year you redeemed it, Treasury will send you a Form 1099-INT in January of the following year. Use this form to report the interest on your tax return. If you redeemed multiple bonds, you may receive one 1099-INT that combines all of them, or separate forms depending on how they were registered.

Some people hold savings bonds for decades without redeeming them. Interest continues to accrue for up to 30 years (for Series EE) or 30 years (for Series I), but you don't owe tax on it until you actually cash the bond in. This is called tax deferral, and it's one reason people use savings bonds as long-term savings vehicles.

Redeeming bonds through the Treasury Department online

You cannot redeem savings bonds entirely online. However, if you own bonds registered in the TreasuryDirect system (bonds purchased after 2002), you can view their current value and schedule a redemption through your TreasuryDirect account. The money is deposited directly into your bank account within a few business days.

If your bonds are physical paper bonds, you must redeem them in person at a bank or by mail through Treasury. TreasuryDirect only handles electronic bonds that were purchased through that system.

To check whether your bonds are in TreasuryDirect, log into your account or contact Treasury's customer service. If you have an account but don't remember your password, you can reset it on the TreasuryDirect website.

Frequently Asked Questions

Can I redeem a savings bond at any bank?

Most banks and credit unions will redeem savings bonds if you have an account with them. Some banks limit redemptions to account holders only, so call ahead if you're not sure. If your bank refuses, try another bank in your area — there's no requirement to use a specific bank.

What if my bond is worth less than I paid for it?

Series I bonds are may provide never to lose value, so the redemption amount will always be at least what you paid. Series EE bonds are also may provide to at least double in value over 20 years. If you redeem early and interest rates have fallen, the bond's value may be close to what you paid, but it won't be less.

Do I have to redeem the entire bond, or can I cash in part of it?

Savings bonds are all-or-nothing — you redeem the entire bond or none of it. You cannot split a $10,000 bond and cash in $5,000 while keeping the rest. If you need only part of the value, you'll have to redeem the whole bond and reinvest the excess elsewhere.

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

At a bank, you receive the money the same day — either deposited into your account or given as cash. If you redeem through TreasuryDirect online, the deposit takes two to three business days. If you redeem by mail through Treasury (for lost bonds or deceased owners), it takes four to eight weeks.

Can I redeem a bond that's still earning interest?

Yes. You can redeem a bond at any time after the one-year holding period, and you'll receive all interest earned up to the redemption date. The only cost is the three-month interest penalty if you redeem before five years — you don't lose the bond's value itself.