You can cash in a savings bond at most banks, through the Treasury Department, or by mail — but the method depends on the bond type and whether it has finished earning interest

Cashing in a savings bond is straightforward once you know which path to take. Series EE and Series I bonds (the two types most people own) can be redeemed at your bank, through TreasuryDirect online, or by mailing the bond to the Treasury. The fastest route is usually your bank if you have an account there. The Treasury Department will always cash them, but processing takes longer. You cannot cash a bond before it reaches its final maturity date — typically 30 years from issue — though you can cash most bonds after they have been held for one year.

The method you choose depends on whether you have a physical bond or an account with TreasuryDirect, how quickly you need the money, and whether your bank offers this service. Each route has different timing and requirements, so understanding your options helps you pick the fastest one for your situation.

Key Takeaways

  • Banks will cash Series EE and Series I bonds on the spot if you have an account there and bring the physical bond and a valid ID.
  • TreasuryDirect lets you redeem bonds online if they are registered in your name and you have a TreasuryDirect account, with funds deposited within one to three business days.
  • The Treasury Department will cash bonds by mail, but you must include a completed FS Form 1522 and wait four to six weeks for processing.
  • Cashing a bond before five years have passed means you lose the last three months of interest as a penalty, except for Series I bonds issued after May 2003.
  • You will receive a 1099-INT form for any interest earned, which counts as taxable income in the year you cash the bond.

Cashing in a bond at your bank

Taking a bond to your bank is the fastest method if you have an account there. Bring the physical bond itself, a valid photo ID, and your account information. The teller will verify the bond's serial number and current value, then deposit the cash directly into your account or give it to you in person. Most banks complete this within minutes.

Not all banks cash savings bonds — call ahead to confirm. Banks that do cash them typically require you to be a customer with an account at that branch. If your bank does not offer this service, ask whether they can refer you to a bank that does, or use one of the other methods below. Some credit unions also cash savings bonds, so that is worth checking if you are a member.

Redeeming bonds through TreasuryDirect online

If your bonds are registered in your name on TreasuryDirect (the Treasury's online system), you can redeem them without leaving home. Log into your TreasuryDirect account, navigate to the "Manage Securities" section, and select the bond you want to cash. Confirm the redemption, and the Treasury will deposit the funds into the bank account linked to your TreasuryDirect profile within one to three business days.

This method works only for bonds you purchased through TreasuryDirect or bonds that were transferred into a TreasuryDirect account. If you have an old paper bond that was never registered online, you cannot use this method — you will need to use your bank or mail the bond to the Treasury instead. TreasuryDirect accounts are free to open and can be set up at treasurydirect.gov.

Mailing a bond to the Treasury Department

You can mail a physical savings bond directly to the Bureau of the Fiscal Service, which is part of the Treasury Department. Include the bond itself, a completed FS Form 1522 (the "Request for Payment of Savings Bond"), and a copy of your photo ID. Mail everything to the address listed on the form — currently the Treasury Retail Securities Services office in Parkersburg, West Virginia.

Processing takes four to six weeks from the date the Treasury receives your package. The Treasury will mail you a check or deposit funds into a bank account you specify on the form. Because of the processing time, this method is best used when you are not in a hurry. Always send bonds by certified mail with return receipt so you have proof of delivery.

Understanding the early redemption penalty

If you cash a Series EE or Series I bond before it has been held for five years, you lose the last three months of interest. For example, if you cash a bond after four years and six months, you receive interest only through the four-year mark. This penalty does not explore if the bond has been held for five years or longer.

Series I bonds issued after May 2003 have a different rule: you lose three months of interest only if you redeem within five years. Series I bonds issued before May 2003 follow the same five-year rule as Series EE bonds. Check your bond's issue date to know which rule applies. If you are close to the five-year mark, waiting a few months can save you money in lost interest.

What to do with the money and tax reporting

Once you receive the cash, it is yours to use as you wish. However, the interest you earned on the bond counts as taxable income. The Treasury will send you a 1099-INT form in January of the year after you cash the bond, showing the total interest earned. You must report this on your federal tax return.

You can choose to report the interest in the year you cash the bond or in the year the bond reaches final maturity, but you must be consistent. Most people report it in the year of redemption. If the bond was held in a child's name, the parent or guardian typically reports the interest on their return, though rules vary depending on the child's age and income. Consult a tax professional if you are unsure how to report the interest.

What happens if you lose the physical bond

If you have a paper savings bond and cannot find it, you can still recover the money. Contact the Treasury Department's Savings Bond Division and provide the bond's serial number, issue date, and the name it was registered under. The Treasury can verify whether the bond exists and help you file a claim. This process takes longer than a standard redemption — typically several months — because the Treasury must confirm the bond has not already been cashed.

If the bond was purchased through TreasuryDirect, you do not need the physical document. Log into your account and redeem it online. Paper bonds issued before 2012 are the ones most likely to be lost or misplaced, so check old files and safe deposit boxes before assuming it is gone. The Treasury's website has a tool to search for unclaimed savings bonds as well.

Frequently Asked Questions

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

No. Federal rules require you to hold a savings bond for at least one year before you can redeem it. If you need the money sooner, you will have to wait or find another source of funds. After one year, you can cash it anytime, though redeeming before five years means losing three months of interest.

What if the bond is in someone else's name?

If the bond is registered in another person's name, only that person can redeem it. If the owner has died, the person handling the estate can redeem it by providing a death certificate and proof of authority (such as letters testamentary). Contact the Treasury Department for the specific forms needed.

Do I have to pay income tax on the interest when I cash the bond?

Yes. The interest is taxable income in the year you redeem the bond. You will receive a 1099-INT form showing the amount. You report this on your federal tax return. State income tax rules vary by location, so check your state's requirements as well.

How do I know how much my bond is worth?

Visit the Treasury's Savings Bond Calculator at treasurydirect.gov, enter your bond's series, denomination, and issue date, and it will show the current value. If the bond is in TreasuryDirect, your account dashboard displays the value automatically. Your bank can also look up the value when you bring the bond in.

What if I want to cash only part of a bond?

You cannot partially redeem a savings bond. You must cash the entire bond. If you need only part of the money, you will have to redeem the full amount and keep the rest, or wait and redeem it later if possible.