Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether your bond is a paper certificate or held electronically in the Treasury's system.

If you have a physical paper bond, take it to any bank or credit union where you have an account. Most will cash it on the spot during business hours. If you don't have an account there, some banks will still cash it but may charge a small fee or require you to open one. Call ahead to confirm their policy.

If your bond is registered electronically through TreasuryDirect (the Treasury's online platform), you must cash it through your TreasuryDirect account. You cannot walk into a bank with an electronic bond because no physical certificate exists.

Key Takeaways

  • Paper savings bonds can be cashed at most banks and credit unions, while electronic bonds held in TreasuryDirect must be cashed through your online account.
  • You need the bond's serial number and proof of ownership to cash it, and the Treasury will verify the bond's value and whether it has reached maturity.
  • Cashing a bond before its final maturity date means you lose all remaining interest, so check the bond's issue date and series before you cash.
  • The Treasury reports the interest you earned on Form 1099-INT, which you must include on your tax return even if you don't receive the form.

What you need to bring to cash a paper bond

Bring the physical bond certificate itself and a government-issued photo ID. The bank will need to see both to verify you are the owner or an authorized representative.

If the bond is registered in someone else's name and you are cashing it on their behalf, bring a power of attorney document or a letter signed by the owner authorizing you to cash it. If the original owner has died, bring a death certificate and proof that you are the executor or beneficiary of their estate.

The bank will look up the bond's serial number in the Treasury's system to confirm its current value and whether it is may be able to access to be cashed. This usually takes a few minutes. You will receive the full value in cash or as a deposit to your account.

How to cash an electronic bond through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and locate the bond you want to cash.

Select the bond and choose the option to redeem it. The system will show you the current value and ask you to confirm. Once you submit the redemption request, the Treasury will process it within one to three business days and deposit the money into the bank account linked to your TreasuryDirect account.

If you have forgotten your TreasuryDirect password, use the "Forgot Password" link on the login page. If you no longer have access to the email address associated with your account, contact the Treasury's customer service line at 844-284-2676 to verify your identity and regain access.

When you lose interest by cashing early

Savings bonds earn interest over time, and the longer you hold them, the more they grow. However, if you cash a bond before it reaches its final maturity date, you forfeit all interest that would have been earned after the date you cash it.

For example, a Series EE bond issued in 2010 has a final maturity date of 2040. If you cash it in 2025, you receive the value it had on that day, but you lose all the interest it would have earned from 2025 to 2040. The Treasury does not pay interest retroactively for bonds cashed early.

Most savings bonds also have an early redemption penalty. If you cash a bond within the first five years of purchase, you lose the last three months of interest. After five years, there is no penalty. Check your bond's issue date and series before you cash to understand what you will receive.

Tax reporting when you cash a bond

The interest you earned on the bond is taxable income in the year you cash it. The Treasury will send you a Form 1099-INT if the interest exceeds $10, but you must report the interest on your tax return even if you do not receive the form.

You report the interest as ordinary income on your federal tax return. If you cashed bonds in multiple years, each year's interest is reported separately on the 1099-INT for that year. Keep your bond documentation and the 1099-INT together for your records.

Some people choose to report the interest each year as the bond earns it, rather than waiting until they cash it. This is called the annual reporting method. If you use this method, you must report it consistently for all your savings bonds and cannot switch back to reporting only when you cash. Consult a tax professional if you are unsure which method applies to your situation.

What to do if your bond is lost or destroyed

If you have a paper bond that is lost, stolen, or damaged beyond use, contact the Treasury's Savings Bond Division at 844-284-2676. You will need to provide the bond's serial number, issue date, and series letter. If you do not have the serial number, provide as much information as you can about when and where you purchased it.

The Treasury will search its records to confirm the bond exists and verify that it has not already been cashed. This process can take several weeks. Once verified, the Treasury will issue a replacement bond or cash it and send you a check, depending on what you request.

If your bond is held electronically in TreasuryDirect, there is no physical certificate to lose. Your bond exists only in the Treasury's system, so it cannot be stolen or destroyed. You can access it anytime by logging into your account.

Frequently Asked Questions

Can I cash a savings bond before it matures?

Yes. Most savings bonds can be cashed anytime after you own them, but you will lose interest if you cash before the final maturity date. Series EE and I bonds have a five-year holding period — you cannot cash them at all during the first five years without losing the last three months of interest.

What if the bank refuses to cash my bond?

Some banks have policies against cashing savings bonds, especially if you do not have an account there. Call ahead to confirm the bank will cash it. If they refuse, contact the Treasury directly at 844-284-2676 or visit treasurydirect.gov to cash it through the government.

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

At a bank, you usually receive the money the same day or within one business day. Through TreasuryDirect, the Treasury deposits the money into your linked bank account within one to three business days. The exact timing depends on your bank's processing speed.

Do I have to pay taxes on the interest from a savings bond?

Yes. The interest is taxable as ordinary income on your federal tax return. You report it in the year you cash the bond, unless you chose the annual reporting method when you first bought it. State and local taxes may also explore depending on where you live.

What happens if I cash someone else's bond without permission?

Cashing a bond registered to someone else without their authorization is fraud. The Treasury and the bank will verify ownership before cashing. If you attempt to cash a bond that is not yours, you could face criminal charges.