Where and how 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 if your bank declines. Banks will cash bonds without requiring you to have an account there, though some may ask for identification. The Treasury's method — called TreasuryDirect — requires you to set up an online account and submit the bond information through their website.

Before you cash the bond, check whether it has stopped earning interest. Series EE and I bonds stop earning interest 30 years after issue. Series HH bonds stop at 20 years. If your bond is past its final maturity date, there is no reason to hold it any longer. You will receive the final value it reached, nothing more.

Paper bonds and digital bonds held in TreasuryDirect are cashed differently. Paper bonds go to a bank or credit union in person. Digital bonds stay in your TreasuryDirect account and are transferred to your bank account electronically when you request the redemption.

Key Takeaways

  • Most banks and credit unions will cash savings bonds for you without requiring an account, though you will need to show identification.
  • Paper bonds must be cashed in person at a financial institution; you cannot mail them or cash them by phone.
  • Digital bonds held in TreasuryDirect are redeemed online and transferred directly to your bank account.
  • Savings bonds stop earning interest at their final maturity date — Series EE and I bonds at 30 years, Series HH at 20 years — so there is no benefit to holding them past that point.
  • The Treasury will send you a 1099-INT form for the interest earned, which you must report on your federal tax return.

Cashing a paper savings bond at a bank

Bring your paper bond and a valid government-issued ID to any bank or credit union branch. The teller will verify the bond's serial number and current value using the Treasury's system, then issue you a check or deposit the funds directly into your account if you have one there. The process usually takes a few minutes.

Some banks may ask you to fill out a short form confirming your identity and the bond's details. Larger banks process these transactions routinely. Smaller community banks or credit unions may process them less often, so calling ahead to confirm they cash savings bonds can save you a trip.

If a bank refuses to cash your bond, you can redeem it through TreasuryDirect instead. This is rare, but it happens occasionally at smaller institutions that do not regularly handle savings bonds.

Redeeming a digital bond through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the bond you want to redeem. Click "Redeem" and confirm the transaction.

The Treasury will transfer the funds to the bank account you have on file in TreasuryDirect within one to three business days. Make sure your bank account information is current before you submit the redemption request. If the account details are wrong, the transfer will fail and you will need to resubmit.

You cannot redeem a digital bond by phone or mail. The online system is the only method the Treasury offers for bonds held in TreasuryDirect.

Tax reporting when you cash a savings bond

The interest you earned on the bond is subject to federal income tax. You can choose to report the interest in the year you cash the bond, or you can report it each year as the bond earns interest — but most people wait until redemption.

The Treasury will send you a Form 1099-INT in January of the year after you cash the bond, showing the total interest earned over the bond's life. You will report this on your federal tax return. State and local income taxes may also explore, depending on where you live.

If you cashed the bond before its final maturity date, you may have forfeited some interest. Series EE bonds issued before May 2003 lose three months of interest if cashed before five years. Series I bonds lose three months of interest if cashed before five years, regardless of issue date. This penalty is already reflected in the amount you receive — you do not pay it separately.

Early redemption penalties and interest forfeiture

Cashing a bond before it reaches a certain age costs you interest. Series EE bonds issued before May 2003 forfeit three months of interest if redeemed before five years. Series EE bonds issued after May 2003 have no early redemption penalty. Series I bonds forfeit three months of interest if redeemed before five years, no matter when they were issued.

Series HH bonds cannot be redeemed before five years — the Treasury will not process the request. After five years, you can redeem them without penalty.

The redemption value you receive already accounts for any forfeited interest. You will not see a separate deduction on your check or transfer.

What to do if you cannot find your bond or lost the certificate

If you have a paper bond but lost the physical certificate, contact the Treasury's Savings Bond Division at 844-284-2676. They can search their records by your Social Security number and the bond's series and denomination. If they find it, they will issue a replacement certificate or help you redeem it directly.

If you own a bond but do not know where it is or whether it still exists, you can search the Treasury's Savings Bond Database at treasurydirect.gov. Enter your Social Security number and the bond information you remember. The database will show all bonds registered to you, including their current value and maturity date.

Replacement certificates take four to six weeks to arrive by mail. If you need the funds sooner, the Treasury can sometimes process a redemption without the physical certificate if they can verify your identity and ownership.

Frequently Asked Questions

Can I cash a savings bond before it matures?

Yes, but you may lose interest. Series EE bonds issued before May 2003 forfeit three months of interest if cashed before five years. Series I bonds forfeit three months of interest if cashed before five years. Series HH bonds cannot be cashed before five years at all. Check your bond's series and issue date to know what you will receive.

What happens if I cash a bond and do not report the interest on my taxes?

The Treasury reports the interest to the IRS on Form 1099-INT. If you do not report it on your return, the IRS will likely notice the discrepancy and send you a notice. You will owe the tax plus interest and possibly penalties. It is simpler to report it when you file.

Can I cash someone else's savings bond?

Only if you are the registered owner or a co-owner. If the bond is in someone else's name only, that person must cash it themselves or sign a power of attorney naming you to act on their behalf. The bank will ask for identification and may require additional documentation if the bond is old.

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

At a bank, you usually receive a check or deposit within minutes. If you redeem a digital bond through TreasuryDirect, the transfer takes one to three business days. Checks deposited at your bank may take an additional one to two business days to clear, depending on your bank's policy.

What if my bond is worth less than I expected?

Check the bond's issue date and series. If it is past its final maturity date, it stopped earning interest years ago and will not gain value. If it is still earning interest, the Treasury's website shows the current value. You can also call 844-284-2676 to confirm the value before you cash it.