Where to cash your savings bonds

You can cash savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury if you have an online account. The easiest route depends on the bond type and whether you have the physical certificate or a digital record.

If you hold paper bonds, call your bank first — many will cash them on the spot during business hours without an appointment. If your bank declines, the Treasury can process the request by mail or through TreasuryDirect, the government's online bond management system. Credit unions often cash bonds for members at no charge, even if you don't have an account there.

For Series I and Series EE bonds held in TreasuryDirect, you can redeem them online when ready and have the money deposited to your bank account within one to three business days. Paper versions of these bonds must go through a bank or the Treasury by mail.

Key Takeaways

  • Most banks and credit unions will cash paper savings bonds during business hours, and many do it for free even if you're not a customer.
  • Series I and Series EE bonds in your TreasuryDirect account can be redeemed online and deposited to your bank account in one to three business days.
  • Paper bonds must be signed in front of a bank officer or notary, and you'll need to show a photo ID.
  • Savings bonds held for less than five years are subject to a three-month interest penalty, so check your purchase date before cashing.
  • The Treasury will process bonds by mail if your bank refuses, though this takes several weeks.

What you need to bring to cash a paper bond

Bring the physical bond certificate and a photo ID — a driver's license, passport, or state ID card. The bank officer will ask you to sign the back of the bond in their presence. If the bond is registered to two people, both must be present and sign, or one person can sign with a power of attorney document.

If you've lost the certificate, the bank cannot cash it. You'll need to contact the Treasury directly by mail with a form FS Form 1048 (Statement Regarding Disposition of Savings Bonds) and proof of ownership, such as a purchase receipt or tax return showing the bond. This process takes four to six weeks.

If the bond owner has died, the person cashing it must bring a death certificate and proof they are authorized to act on the estate — usually an executor's letter or court order. Some banks will not handle deceased owner bonds and will refer you to the Treasury instead.

How to redeem bonds in TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to "Manage My Securities" and select the bond you want to redeem. Click the "Redeem" button and confirm the action — the system will show you the exact amount you'll receive, including any accrued interest.

The Treasury will deduct the redemption amount from your TreasuryDirect account and deposit it to the bank account you have on file. This deposit typically arrives within one to three business days. You'll receive an email confirmation when ready after you submit the redemption request.

If you need to change the bank account where the money goes, update your account information in TreasuryDirect before you redeem. Changes to bank details can take up to one business day to process, so plan ahead if you're switching accounts.

The three-month interest penalty for early redemption

If you cash a savings bond before it has been held for five years, you lose the last three months of interest. For example, if you bought a Series EE bond on January 15, 2020, and cash it on March 1, 2024, you'll receive interest only through December 15, 2023 — not through March 1.

This penalty applies to all savings bonds except Series I bonds purchased after May 2003, which have no early redemption penalty. Check your bond's issue date before you cash it so you understand what you'll receive. If you're close to the five-year mark, waiting a few months may mean keeping an extra month or two of interest.

The interest rate on your bond is set when you purchase it and does not change. Series EE bonds earn a fixed rate; Series I bonds earn a fixed rate plus an inflation rate that changes every six months. The rate printed on your bond certificate or shown in TreasuryDirect is the rate you'll earn for the life of the bond.

Cashing bonds by mail through the Treasury

If your bank refuses to cash your bond or you prefer not to visit in person, you can mail the bond directly to the Treasury. Print and complete Form PD 1048 (Claim for Lost, Stolen, or Destroyed U.S. Savings Bonds) or Form PD 1051 (process for Purchase of U.S. Savings Bonds), depending on your situation. Include the bond certificate, a copy of your photo ID, and a letter explaining why you're redeeming it.

Mail the package to the Bureau of the Fiscal Service, Parkersburg, WV 26106-1328. Include a return address and allow four to six weeks for processing. The Treasury will mail you a check or deposit the funds to a bank account if you provide account details on the form.

This route is slower than using a bank or TreasuryDirect, but it works if you have no other option. Keep a copy of everything you send and consider using certified mail so you have proof of delivery.

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 tax. You report the interest on your federal tax return in the year you cash the bond, unless you've been reporting it annually as you go — which some people do to spread the tax burden.

The bank or Treasury will not send you a 1099 form automatically. You are responsible for calculating the interest earned and reporting it. To find the interest amount, subtract what you paid for the bond from what you received when you cashed it. That difference is your taxable interest.

If you bought the bond with money from a may have access to education savings plan (a 529 plan), the interest may be tax-free if you use it for may have access to education expenses. Keep your bond purchase records and receipts so you can document this if the IRS asks.

What happens if a bond has matured

Series EE bonds stop earning interest 30 years after purchase. Series I bonds stop earning interest 30 years after purchase as well. Once a bond matures, it no longer grows in value, so there's no benefit to holding it. You should cash it and move the money to an account where it can earn interest.

If you hold a matured bond in TreasuryDirect, you'll see a note on your account page. Paper bonds don't have an expiration date printed on them, so you'll need to calculate the maturity date yourself: add 30 years to the issue date shown on the certificate.

Matured bonds can still be cashed using the same methods as active bonds — through a bank, by TreasuryDirect, or by mail to the Treasury. There is no penalty for cashing a matured bond, and you'll receive the full face value plus all accrued interest.

Frequently Asked Questions

Can I cash a savings bond at any bank, or only the one where I have an account?

Most banks will cash savings bonds for anyone, whether you have an account there or not. Call ahead to confirm they offer this service and ask about their hours. Credit unions are often more flexible than banks and may cash bonds for non-members at no charge.

What if I don't know when I bought my bond?

The issue date is printed on the bond certificate itself, usually near the top. If you have a paper bond, look for a date that says "Issue Date" or "Series" followed by a year. If you hold the bond in TreasuryDirect, log in and the issue date appears next to the bond in your account.

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

You must cash the entire bond at once. You cannot redeem half of a bond and keep the other half. If you need only part of the money, consider whether you can wait until the bond matures or reaches a higher value.

What if my name has changed since I bought the bond?

Bring both your old ID (showing the name on the bond) and your new ID (showing your current name) when you cash it at a bank. The bank officer will note the name change in their records. If you're cashing by mail, include a copy of both IDs and a letter explaining the change.

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

At a bank, you receive cash or a check when ready. Through TreasuryDirect, the deposit arrives in one to three business days. By mail to the Treasury, allow four to six weeks. If the Treasury mails you a check, add another week for postal delivery.