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, your ID, and a completed form — the teller will verify the bond's serial number, check that it has reached final maturity or that you meet the redemption rules, and give you the cash or deposit it to an account you name.

If you prefer not to visit a branch, you can redeem Series EE and Series I bonds through the U.S. Treasury's TreasuryDirect website. 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.

The Federal Reserve also redeems savings bonds by mail if you send the bond and a completed form to your regional Federal Reserve Bank. This route takes longer — typically two to three weeks — but works if you live far from a bank or prefer not to visit in person.

Key Takeaways

  • Series EE bonds can be cashed after one year, but you lose the last three months of interest if you cash before five years have passed.
  • Series I bonds must be held for at least one year and lose three months of interest if cashed before five years, the same as EE bonds.
  • Paper bonds require you to visit a bank or credit union with your ID and the bond itself; electronic bonds held in TreasuryDirect can be redeemed online.
  • You will receive a 1099-INT form from the Treasury for the interest earned, which you must report on your federal tax return.

What you need to bring to a bank

Bring the physical bond certificate, a valid government-issued ID (driver's license, passport, or military ID), and the completed Form PD 1522 if you're redeeming a bond registered to someone else or if you're the executor of an estate. Most banks have the form on hand, but you can also read it from the Bureau of the Fiscal Service website before you go.

If the bond is registered in two names and both owners are present, you both need to sign the back of the bond and show ID. If only one owner is present, that person signs and the bank may require a signature may provide or notarization depending on the bond's registration and the bank's policy — call ahead to ask.

For bonds registered to a minor, the parent or legal guardian brings the bond, their own ID, and proof of guardianship (birth certificate or court order). The minor does not need to be present.

The penalty for cashing early

Both Series EE and Series I bonds penalize early redemption the same way: if you cash the bond before it has been held for five years, you lose the last three months of interest. This means if you bought a bond on January 15 and cash it on July 20 of the same year, you receive interest only through April 15 — the last three months are forfeited.

You can cash a Series EE or Series I bond after just one year without any other penalty, but the three-month interest loss still applies. After five years, you can cash without losing any interest. Series I bonds have an additional rule: if you cash before one year has passed, you cannot redeem at all — you must wait the full year.

The amount you lose depends on the bond's interest rate at the time you bought it. A bond earning 5% annually will cost you more in forfeited interest than one earning 1%, so check your bond's rate before you decide when to cash.

How the redemption value is calculated

The redemption value is the bond's face value plus all interest earned up to the redemption date, minus any early-redemption penalty. A $100 Series EE bond purchased at $50 that has earned $8 in interest and is being cashed before five years would be worth $50 + $8 − (three months of interest) = your actual payout.

You can find the current value of your paper bonds using the Savings Bond Calculator on the TreasuryDirect website. Enter the bond's series, denomination, issue date, and the month and year you plan to cash it, and the calculator shows you exactly what you'll receive. For electronic bonds in TreasuryDirect, your account dashboard displays the current value of each bond.

Reporting the interest on your taxes

When you cash a savings bond, the Treasury sends you a Form 1099-INT showing the interest you earned. You must report this interest on your federal tax return in the year you cash the bond, even if you don't receive the 1099-INT until the following January.

The interest is taxable as ordinary income at your federal tax rate. Most states do not tax savings bond interest, but a few do — check your state's tax rules if you live in a state with income tax. You do not owe federal tax on the interest until you actually cash the bond, so holding the bond delays the tax bill.

If you inherited a savings bond and are cashing it for the first time, the interest earned before you inherited it was taxable to the previous owner in the year the bond was cashed. Only the interest earned after you inherited it is taxable to you.

What happens if you lose a bond or it's damaged

If your paper bond is lost, stolen, or destroyed, contact the Bureau of the Fiscal Service at 844-284-2676 or visit their website to file a claim. You'll need to provide the bond's series, denomination, issue date, and serial number if you have it. The Bureau will research whether the bond has been cashed; if it hasn't, they can issue a replacement.

The process takes several weeks. You'll be asked to sign an affidavit swearing that the bond was lost or destroyed and that you have not received payment. If the Bureau confirms the bond was never redeemed, they issue a new certificate with the same issue date and value, preserving your interest accrual.

For electronic bonds in TreasuryDirect, there is no physical certificate to lose. Your bonds are stored in your online account and protected by your login credentials. If your account is compromised, contact TreasuryDirect when ready to freeze it and report the issue.

Cashing bonds held in an estate or trust

If you are the executor or beneficiary of an estate and need to cash a bond registered to the deceased, bring the bond, your ID, a certified copy of the death certificate, and proof of your authority (the will, letters testamentary, or a court order naming you executor). Some banks may also ask for Form PD 1522.

Bonds held in a revocable living trust can usually be cashed by the trustee using the trust document and ID. Bonds held in an irrevocable trust require the trustee's ID and a certified copy of the trust agreement. Call the bank ahead of time to confirm what documents they need — requirements vary by institution.

The interest earned on the bond up to the date of death is taxable income to the estate, not to the person who cashes it. The estate's executor reports this on the estate's final tax return or on Form 1041 if the estate is large enough to require one.

Frequently Asked Questions

Can I cash a savings bond before one year?

No. Series EE and Series I bonds cannot be redeemed before one year has passed from the issue date. If you try to cash before that date, the bank will refuse. After one year, you can cash anytime, but you'll lose three months of interest if you cash before five years have passed.

What if I don't know the serial number of my bond?

The serial number is printed on the bond certificate itself. If you have the physical bond, you can read it directly. If you've lost the bond and need the serial number to file a claim, the Bureau of the Fiscal Service can search their records using your name, Social Security number, and the bond's approximate issue date and denomination.

Do I have to cash the entire bond at once?

Yes. Savings bonds are redeemed in full — you cannot cash part of a bond and keep the rest. If you own multiple bonds, you can choose which ones to cash and leave others untouched, but each individual bond must be cashed completely or not at all.

What if the bank won't cash my bond?

Banks are not required to cash savings bonds, though most do. If your bank refuses, try another bank or credit union in your area. You can also redeem through TreasuryDirect online or by mail to the Federal Reserve. Call the Bureau of the Fiscal Service at 844-284-2676 if you're having trouble finding a place to cash.

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

Yes. You can cash a bond at any time after one year, regardless of whether it's still in its earning period. Series EE bonds earn interest for 30 years, and Series I bonds earn for 30 years as well. You don't have to wait for the earning period to end — you can cash whenever you need the money.