How to redeem your savings bonds

You redeem a savings bond by taking it to a bank or credit union and asking them to cash it. Most financial institutions that hold deposit accounts will cash savings bonds for their customers at no charge. You need the bond itself, a valid photo ID, and your Social Security number. The bank verifies the bond's serial number and current value, then pays you the amount it's worth on that day.

The process takes about 15 minutes. Some banks will deposit the money directly into your account; others issue a check. A few large banks have started requiring you to set up an appointment rather than walk in, so call ahead if you're unsure about your bank's policy.

If you don't have a bank account or your bank won't cash the bond, you can redeem it through the U.S. Treasury's TreasuryDirect website or by mail. The Treasury route takes longer — typically two to three weeks — but works if you have no other option.

Key Takeaways

  • Take your bond and photo ID to any bank or credit union where you have an account, and they will cash it for you on the spot.
  • Series EE and Series I bonds must be held for at least one year before you can redeem them, and you lose the last three months of interest if you cash them before five years.
  • The bank pays you the current redemption value printed on the bond or calculated by the Treasury, not the face value printed on the front.
  • If you don't have a bank, you can redeem through TreasuryDirect online or by mailing the bond to the Treasury, though this takes two to three weeks.
  • Savings bonds are reported as income on your tax return in the year you redeem them, unless you chose to report the interest each year as it accrued.

Checking your bond's current value before you cash it

Before you walk into a bank, you should know what your bond is worth. The redemption value changes monthly for Series I bonds and every six months for Series EE bonds. You can look up the exact value on the TreasuryDirect website without logging in — just enter the bond's series, denomination, and issue date.

The value printed on the front of the bond is not what you'll receive. That's the face value. The actual amount you get depends on how long you've held it and what interest rate it earned. For example, a $50 Series EE bond issued in 2015 might be worth $58 today, not $50.

If you've lost track of your bonds or don't remember when you bought them, the Treasury can search for unclaimed savings bonds in your name. You'll need to provide your Social Security number and birth date. This search is free and takes about two weeks.

What happens if your bond hasn't reached its minimum holding period

Series EE and Series I bonds cannot be redeemed during the first year you own them. If you try to cash one before 12 months have passed, the bank will refuse. You have to wait.

If you redeem a Series EE or Series I bond before it has been held for five years, you lose the last three months of interest. So if you've owned the bond for two years, you only receive the value as of nine months ago. This penalty exists to discourage early redemption. Series HH bonds, which are older and less common, have different rules — they cannot be redeemed before five years and have a six-month interest penalty if redeemed before 20 years.

If you're facing a financial emergency and need the money, it's worth calculating whether the three-month penalty is worth it. Sometimes it is. The bank can show you what you'd receive with and without the penalty before you decide.

Redeeming bonds through TreasuryDirect if you have no bank

If you don't have a bank account or your bank refuses to cash the bond, you can redeem it through TreasuryDirect. Log into your account on treasurydirect.gov, navigate to "Manage Securities," and select the bond you want to redeem. You'll see the current value and can request payment to a bank account you own.

The Treasury will deposit the money into the account you specify within two to three business days. You need to have a U.S. bank account for this method — they cannot send a check or wire the money to an account outside the United States.

If you don't have a TreasuryDirect account, you can mail the physical bond to the Treasury along with a form. read Form PD F 1522 from treasurydirect.gov, fill it out, and mail it with your bond to the address on the form. Include a copy of your photo ID and your Social Security number. This method takes four to six weeks.

Tax reporting when you redeem savings bonds

The interest you earned on the bond is taxable income in the year you redeem it. The bank or Treasury will not send you a tax form — you report the interest yourself on your federal tax return. To calculate the interest, subtract what you originally paid for the bond from what you received when you cashed it.

If you bought a $50 Series EE bond for $25 and redeemed it for $58, your taxable interest is $33. You report this on your tax return as interest income. You do not owe Social Security tax or Medicare tax on savings bond interest, only federal income tax (and state income tax in most states).

There is one exception: if you bought the bond under the Education Savings Bond Program and used the money for may have access to education expenses, you may be able to exclude the interest from your taxable income. This requires filing Form 8815 with your tax return. The rules are strict — the bond must have been issued after 1989, you must have been at least 24 years old when you bought it, and the education expenses must have been paid in the same year you redeemed the bond.

What to do if you've lost the physical bond

If you own a paper savings bond and have lost it, you can file a claim with the Treasury to replace it. You'll need to provide the bond's series, denomination, and issue date if you have them. If you don't have those details, provide your name, Social Security number, and the approximate year you bought it.

The Treasury will search their records for bonds matching your information. If they find it, they can issue a replacement bond or pay you the current value. This process takes about six weeks. You can start a claim on TreasuryDirect or by mailing Form PD F 1048 to the Treasury.

If you own bonds through a TreasuryDirect account, you don't have this problem — the bonds are electronic and stored on the Treasury's servers. You access them by logging into your account.

Redeeming bonds held in someone else's name or an estate

If you're trying to redeem a bond that was issued in someone else's name, you need legal authority to do so. If the bond owner is alive, they must redeem it themselves or sign a power of attorney giving you permission. If the bond owner has died, you need to provide a death certificate and proof that you're authorized to handle their estate — usually a copy of the will or a letter from the probate court.

The bank or Treasury will not cash a bond in a deceased person's name without this documentation. The process varies depending on whether the estate has gone through probate and whether the bond was held in a TreasuryDirect account or as a physical certificate. Contact the Treasury directly if you're unsure what documents you need.

Frequently Asked Questions

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

Most banks will cash a savings bond for anyone with a valid photo ID and Social Security number, even if you don't have an account there. However, some large banks have started limiting this service to account holders only. Call ahead to confirm your bank's policy before you go in.

What if the bank says my bond is worth less than I expected?

Ask the bank to show you the Treasury's official redemption value. You can verify this yourself on treasurydirect.gov by entering your bond's details. If there's a discrepancy, the bank made an error — ask them to recalculate. If you redeemed before five years, remember that you lose three months of interest, which may explain the lower amount.

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

You must redeem the entire bond. You cannot cash in half of a $100 bond and keep the other half. If you need only part of the money, you have to redeem the whole thing and keep the rest in savings.

What happens to the interest if I redeem a bond early?

If you redeem before five years, you lose the last three months of interest earned. The bank will pay you the value as of three months before your redemption date. If you redeem before one year, the bank will refuse — you must wait at least 12 months.

Can I redeem a savings bond online without going to a bank?

Yes, if the bond is in a TreasuryDirect account. Log in, select the bond, and request payment to your bank account. The money arrives in two to three business days. If you have a physical paper bond, you must take it to a bank or mail it to the Treasury.