Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, even if you don't have an account there. Walk in with the bond itself, your government-issued ID, and your Social Security number. The teller will verify the bond's serial number and your identity, then issue you a check or deposit the money directly into an account you name.

If you prefer not to visit a bank in person, you can mail the bond to the U.S. Department of the Treasury's Bureau of the Fiscal Service. Send the physical bond, a completed FS Form 1522 (Request for Payment of Savings Bond), a copy of your ID, and a copy of your Social Security card to the address listed on the Treasury's website. Processing by mail takes roughly four to six weeks.

Some employers and financial institutions also redeem bonds as a service to customers, though this is less common than it once was. Call ahead to confirm before making a trip.

Key Takeaways

  • Most banks and credit unions will cash your bond on the spot without requiring you to be a customer, as long as you bring the bond and a government ID.
  • You must wait until a bond reaches its final maturity date to cash it without penalty, though you can cash Series EE and I bonds after one year (with a three-month interest penalty if cashed before five years).
  • The Treasury will process bonds by mail if you complete Form FS 1522 and mail the physical bond, but expect four to six weeks for payment.
  • Interest earned on savings bonds is subject to federal income tax but not state or local tax, and you report it on your tax return in the year you cash the bond.

When you can cash a bond without a penalty

The rules depend on which type of bond you hold. Series EE bonds can be cashed after one year, but if you cash them before five years have passed, you lose the last three months of interest. After five years, you can cash them anytime without penalty. Series I bonds follow the same structure: one year minimum, three-month interest penalty if cashed before five years, no penalty after five years.

Series HH bonds (no longer sold but still held by many people) mature over 20 years and pay interest twice a year. You can exchange them for Series I bonds, or you can cash them at maturity. Savings Notes and older bond types have their own maturity schedules printed on the certificate itself.

If you cash a bond before its final maturity date, you receive the current redemption value, which includes all interest earned up to that point minus any applicable penalty. The redemption value is printed on the bond or available through the Treasury's Savings Bond Calculator on its website.

What happens to the interest you've earned

Interest on savings bonds is taxed as ordinary federal income. You report it on your tax return in the year you cash the bond, not in the years it was earned. This means if you hold a bond for 20 years and then cash it, you report all 20 years of interest on that single year's return.

You have the option to report interest each year as it accrues instead of waiting until you cash the bond. This requires filing Form 8818 with your tax return in the first year you choose this method. Most people don't do this because it creates extra tax work with no benefit unless you expect to be in a lower tax bracket when you cash the bond.

Savings bond interest is not subject to state or local income tax, which is one reason they appeal to people in high-tax states. Federal tax is the only tax you owe on the interest.

Cashing a bond that belongs to someone else

If the bond is registered in someone else's name, that person must be present to cash it, or they must sign a power of attorney form authorizing you to act on their behalf. A bank will not cash a bond in another person's name without this authorization.

If the bond owner has died, the person handling the estate (the executor or administrator) can cash it. Bring the death certificate, proof of your authority to handle the estate, and the bond itself. Some banks may ask for additional documentation, so call ahead.

If a bond is registered as "payable on death" to a named beneficiary, that beneficiary can cash it after the owner dies by presenting the death certificate and their ID.

What to bring to the bank

Bring the physical bond itself — the actual certificate. A photocopy will not work. Bring one government-issued photo ID (a driver's license, passport, or state ID card). Bring your Social Security number; you may need to write it on a form the bank provides, or you can bring a copy of your Social Security card.

If you're cashing the bond for someone else, bring their ID and a signed power of attorney or other legal authorization. If the bond owner has died, bring the death certificate and proof that you're authorized to handle their estate.

Call the bank ahead of time if you're cashing a bond for more than $10,000. Some banks flag large cash transactions for reporting purposes and may ask additional questions about the source of the bond.

Cashing a bond you can't find or that's been lost

If you've lost the physical bond, you can file a claim with the Treasury's Bureau of the Fiscal Service. Complete Form FS 1048 (Claim for Lost, Stolen, or Destroyed Savings Bond) and mail it with supporting documentation. The Treasury will research whether the bond was ever cashed and, if not, issue you a replacement or payment.

The process takes several months. You'll need to provide as much information as you can about the bond: the series, the denomination, the issue date, and the serial number if you have it. If you have old bank statements or tax returns that mention the bond, include copies of those.

If you bought the bond through a bank or employer savings plan, contact that institution first — they may have records of the bond's serial number and issue date, which speeds up the Treasury's search.

Reinvesting the money into new bonds

Once you cash a bond, you can buy new savings bonds through TreasuryDirect, the Treasury's online platform. You can purchase Series EE and Series I bonds in amounts from $25 to $10,000 per bond type per calendar year (the limit is per person, per year). You fund the purchase with money from a bank account.

Series I bonds are indexed to inflation and adjust their interest rate every six months. Series EE bonds pay a fixed rate for the life of the bond. Both require you to hold them for at least one year and impose a three-month interest penalty if you cash them before five years.

You can also buy bonds as gifts through TreasuryDirect, though the recipient cannot cash them until they reach the age of 18 (or until you transfer ownership to them if they're already an adult).

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but policies vary. Call ahead to confirm. Some smaller institutions or branches may not offer this service. If your bank declines, the Treasury will always cash it by mail, though it takes four to six weeks.

What if my bond is worth more than $10,000?

You can still cash it at a bank. Bonds have no upper limit on value. The bank may ask questions about the source of the bond for reporting purposes, but this is routine and does not prevent you from cashing it. Bring documentation showing you own the bond (the certificate itself is your proof).

Do I have to report the interest to the IRS?

Yes. The interest is taxable federal income in the year you cash the bond. You report it on your tax return. The Treasury does not send you a 1099 form for savings bonds, so you must track the interest yourself using the redemption value printed on the bond or the Treasury's calculator.

Can I cash a bond if I'm not the person whose name is on it?

Only if you have written authorization from the bond owner (a power of attorney) or if you're the executor of their estate and they have died. The bank will require proof of your authority before processing the transaction.

What if I cash a Series I bond before it's five years old?

You lose the last three months of interest. For example, if you cash it after three years, you receive the value as of three years minus three months (two years and nine months). After five years, you can cash it anytime without this penalty.