Where and how to redeem your savings bonds

You can redeem a US savings bond at most banks and credit unions, or directly through the US Department of the Treasury. The method depends on whether your bond is in paper form or held electronically in TreasuryDirect, the government's online account system.

Paper bonds can be redeemed at any financial institution that offers savings bond services — call ahead to confirm, since not all branches handle them. You'll need to bring the physical bond and a valid ID. Electronic bonds held in TreasuryDirect can only be redeemed through your online account; you cannot walk into a bank with them.

The Treasury processes TreasuryDirect redemptions within one to three business days and deposits the money directly to your linked bank account. Banks typically process paper bonds on the spot, though some may require a few business days to clear the transaction.

Key Takeaways

  • Paper savings bonds can be redeemed at banks, credit unions, and the Federal Reserve, while electronic bonds must be redeemed through your TreasuryDirect account online.
  • You must wait until a bond reaches its final maturity date or hold it for at least one year before redeeming, and you will lose the last three months of interest if you redeem before five years have passed.
  • Bring the physical bond and a government-issued ID to a bank; have your TreasuryDirect login information ready if redeeming online.
  • The Treasury reports all savings bond redemptions to the IRS, and you owe federal income tax on the interest earned, though you may owe state and local taxes depending on where you live.

Timing rules: when you can actually redeem

You must hold a savings bond for at least one year before you can redeem it, no matter what type it is. This is a hard rule with no exceptions. If you try to redeem a bond you've owned for less than a year, the financial institution will refuse.

If you redeem a bond before it has been held for five years, you lose the last three months of interest. For example, if you redeem a bond after three years and six months, you receive interest only through month 33, not month 36. This penalty applies to both Series EE and Series I bonds.

After five years, you can redeem without losing interest. After 30 years, Series EE bonds stop earning interest and must be redeemed. Series I bonds stop earning interest after 30 years as well. You can hold bonds past their maturity date, but they will no longer accrue interest.

What you need to bring to a bank

For paper bonds, bring the bond certificate itself and a government-issued photo ID — a driver's license, passport, or state ID card. The bank will verify the ID matches the name on the bond. If the bond is registered to someone else and you have power of attorney, bring the power of attorney document as well.

If you've lost a paper bond, you cannot redeem it at a bank. Instead, you must file a claim with the Treasury's Bureau of the Fiscal Service using Form 1048, which requires proof of ownership and the bond's serial number. This process takes several weeks.

For electronic bonds in TreasuryDirect, you need only your login credentials and access to the email address or phone number associated with your account. The Treasury may ask you to verify your identity through additional security steps before processing the redemption.

Redeeming bonds registered to a minor or deceased person

If a bond is registered to a minor, a parent or legal guardian must redeem it on the child's behalf. Bring the child's birth certificate or Social Security card along with the guardian's ID. Some banks may require additional documentation proving guardianship.

If the bond owner has died, the person handling the estate must redeem the bond. This person will need the death certificate, proof of their authority to act on behalf of the estate (such as letters testamentary or a court order), and their own ID. The redemption proceeds become part of the estate and are subject to probate rules in your state.

If a bond was registered as "payable on death" to a named beneficiary, that beneficiary can redeem it after the owner's death by presenting the death certificate and their own ID. The bank or Treasury will verify the beneficiary designation on the bond.

Tax reporting and what happens after redemption

When you redeem a savings bond, the financial institution or Treasury does not withhold taxes. However, you owe federal income tax on all the interest the bond earned. You will receive a Form 1099-INT from the Treasury showing the interest amount, usually by January 31 of the following year.

You report this interest on your federal tax return for the year you redeem the bond, even if you held it for many years. Some people choose to report interest each year as it accrues rather than waiting until redemption, which can spread the tax burden across multiple years — your tax preparer can advise whether this makes sense for your situation.

State and local income taxes on savings bond interest vary by location. Some states do not tax interest income at all, while others tax it the same way they tax other income. Check your state's tax rules or ask a tax professional about your specific situation.

Redeeming bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage Securities" section and select the bond you want to redeem. The system will show you the current value, the interest earned, and any penalties for early redemption.

Click "Redeem" and confirm the transaction. You will be asked to verify the linked bank account where the money should be deposited. The Treasury processes the redemption and deposits funds within one to three business days. You can track the status in your account.

If you have forgotten your TreaduryDirect password, use the "Forgot Password" link on the login page. If you cannot regain access to your account, contact TreasuryDirect customer service by phone at 844-284-2676 or through the website's contact form.

What to do if a bank refuses to redeem your bond

Some banks have stopped offering savings bond redemption services in recent years. If your bank declines, ask whether they can refer you to another branch or institution in your area that does. The Federal Reserve Bank in your region also redeems savings bonds — you can find the nearest one on the Federal Reserve's website.

If you cannot find a bank or Federal Reserve location nearby, you can mail the bond to the Treasury's Bureau of the Fiscal Service with a completed Form 1048. Include a cover letter stating that you want to redeem the bond, and mail it to the address listed on the form. The Treasury will process it and mail you a check, which typically takes four to six weeks.

Never mail a bond through regular postal mail without tracking and insurance. Use certified mail with return receipt requested, or a carrier that provides tracking and signature confirmation.

Frequently Asked Questions

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

No. All savings bonds must be held for at least one year before redemption. This rule applies regardless of the bond type, the reason you need the money, or whether you have an emergency. If you redeem before one year, the financial institution will refuse the transaction.

What happens to the interest if I redeem early?

If you redeem before five years have passed, you lose the last three months of interest earned. After five years, you receive all interest accrued. After 30 years, the bond stops earning interest entirely, so there is no benefit to holding it longer.

Do I have to pay taxes when I redeem?

The bank or Treasury does not withhold taxes at redemption. However, you owe federal income tax on the interest the bond earned. You will receive a Form 1099-INT showing the interest amount, which you report on your tax return for the year you redeem. State and local taxes depend on where you live.

What if I lost my paper savings bond?

You cannot redeem a lost bond at a bank. Instead, file Form 1048 with the Treasury's Bureau of the Fiscal Service, including proof of ownership and the bond's serial number if you have it. The process takes several weeks and requires documentation of your claim.

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

At a bank, only the person whose name appears on the bond can redeem it, unless you have a legal power of attorney. If you have power of attorney, bring the original document to the bank along with the bond and your ID. For TreasuryDirect bonds, only the account owner can redeem through their login.