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 you own it electronically. The method depends on whether your bond is paper or digital, and whether it has reached final maturity.

Paper bonds issued before May 2003 can be cashed at any bank or credit union that offers savings bond services — call ahead to confirm, since not all branches do. You'll need to bring the physical bond and a valid ID. The teller will verify the bond's serial number and current value, then process the redemption. Most banks complete this same-day or within one business day.

Electronic bonds held in TreasuryDirect (the Treasury's online system) are cashed through your TreasuryDirect account. Log in, select the bond you want to redeem, and request the redemption. The money goes directly to your linked bank account within one to three business days.

Key Takeaways

  • Paper bonds can be cashed at most banks and credit unions, but you must bring the physical bond and a valid ID.
  • Electronic bonds held in TreasuryDirect are redeemed through your online account and deposited to your linked bank account.
  • Series EE and I bonds have a one-year holding requirement before you can cash them, and a five-year penalty if you redeem before five years.
  • The bond's current value is printed on the paper certificate or shown in your TreasuryDirect account and includes all accrued interest.
  • If a paper bond is lost, stolen, or destroyed, you can file a claim with the Treasury to replace it or receive its value.

Holding periods and early redemption penalties

Series EE and Series I bonds cannot be cashed during the first year you own them. If you redeem either type before five years have passed, you lose the last three months of interest as a penalty.

For example, if you redeem a Series I bond after three years and two months, you receive the bond's value minus three months of interest. After five years, you can redeem without penalty, though the bond continues to earn interest if you hold it longer. Series EE bonds stop earning interest after 30 years; Series I bonds stop after 30 years as well.

If you inherited a bond or received one as a gift, the one-year holding period and five-year penalty clock start from the original issue date, not from when you received it. Check the issue date on the certificate or in TreasuryDirect to know when you can cash it penalty-free.

What happens to the interest when you cash

All accrued interest is included in the redemption value you receive. The bond's current value shown on the certificate or in TreasuryDirect already reflects every interest payment earned to date, so you don't receive interest separately.

The interest is taxable as federal income in the year you redeem the bond. You will not receive a 1099-INT form from the Treasury; instead, you report the interest on your tax return. The interest amount equals the redemption value minus the original purchase price.

If you held the bond for many years, the interest can be substantial. For a Series I bond purchased at $50 and redeemed for $67, the taxable interest is $17. Keep your purchase receipt or TreasuryDirect records so you can calculate the correct amount when you file taxes.

Replacing a lost, stolen, or destroyed paper bond

If your paper bond is lost, stolen, or destroyed, you can file a claim with the Bureau of the Fiscal Service (part of the Treasury Department) to receive a replacement bond or its current value in cash.

To file a claim, you need the bond's serial number, issue date, and series (EE, I, or other). If you have the original purchase receipt or documentation, include it. You'll also need to sign an affidavit stating that the bond is lost or destroyed. The form to use is FS Form 1048, available on the Treasury's website.

Mail the completed form and supporting documents to the address listed on the form. Processing typically takes four to six weeks. The Treasury will either issue a replacement bond or send you a check for the current value, depending on your request and the bond's status.

Cashing bonds held in someone else's name

If a bond is registered in someone else's name, only that person can redeem it. If the owner has died, the bond becomes part of their estate and must be handled through probate or according to the estate's instructions.

If you are the executor or administrator of an estate, you can redeem the deceased person's bonds on behalf of the estate. Bring the death certificate, proof of your authority (such as letters testamentary from the court), and the bond itself to a bank. Some banks require additional documentation, so call ahead.

If the bond is registered in two names (co-owners), either owner can typically redeem it without the other's permission. Check the bond certificate to see how the names appear. If you're unsure about ownership or authority, contact the Bureau of the Fiscal Service directly before attempting to cash the bond.

Tax reporting when you redeem

The interest earned on a savings bond is subject to federal income tax but exempt from state and local income tax. You report the interest on your federal tax return in the year you redeem the bond.

The Treasury does not send you a 1099-INT form for savings bonds. You calculate the interest yourself: redemption value minus purchase price. If you redeemed multiple bonds in the same year, add up all the interest and report the total.

If you have records from TreasuryDirect or your original purchase receipts, use those to verify the purchase price and redemption value. Keep these records for at least three years in case the IRS asks questions about your reported interest income.

What to do if a bank won't cash your bond

Some banks have stopped offering savings bond redemption services, particularly for older paper bonds. If your bank declines, you have two options: go to a different bank or credit union, or redeem through the Treasury directly.

Call ahead to confirm that a bank offers bond redemption before you visit. Larger banks and credit unions are more likely to have the service than smaller branches. If no local bank will cash it, you can mail the paper bond to the Bureau of the Fiscal Service with a completed FS Form 1522 (Request for Payment of Savings Bond). Include your Social Security number and the address where you want the check sent. Processing takes four to six weeks.

For electronic bonds, you have no alternative — you must use TreasuryDirect. If you've lost access to your TreasuryDirect account, contact the Treasury's customer service to regain access or request a redemption by mail.

Frequently Asked Questions

Can I cash a savings bond before it reaches final maturity?

Yes, as long as you meet the holding requirements. Series EE and I bonds can be cashed after one year, though you'll lose three months of interest if you redeem before five years. Other series have different rules — check your bond's series and issue date to know the exact terms.

What if my paper bond is damaged but still readable?

Most banks will still cash a damaged bond if the serial number and denomination are legible and the bond can be verified in the Treasury's system. Bring it to a bank and ask. If the damage is severe, the bank may refuse and direct you to file a replacement claim with the Treasury instead.

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

You must redeem the entire bond. Savings bonds cannot be split or partially redeemed. If you own multiple bonds, you can choose which ones to cash and leave others untouched.

How long does it take to get the money after I redeem?

At a bank, you typically receive cash or a check the same day or within one business day. Through TreasuryDirect, the money is deposited to your linked bank account within one to three business days. By mail, processing takes four to six weeks.

Will cashing a savings bond affect my taxes or benefits?

The interest is taxable income and must be reported on your federal tax return. If you receive means-tested benefits (such as Supplemental Security Income or SNAP), the redemption may affect your may be able to access — contact your benefits administrator to ask how unearned income is treated.