Where and how to cash your savings bonds

You can cash savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury if your financial institution won't redeem them. The method depends on the bond type, how long you've held it, and whether you have the physical bond or a digital record.

If you have a paper bond, bring it to any bank or credit union along with a valid ID. The teller will verify the bond's serial number and current value, then issue you a check or deposit the funds to your account. If you own a bond through TreasuryDirect (the Treasury's online system), you log in, select the bond, and request a redemption—the money transfers to your linked bank account within a few business days.

Some banks charge a small fee to redeem bonds, though many do not. Call ahead to ask. If your bank refuses, the Treasury will redeem any bond you own, but the process takes longer and requires mailing documents or using their online portal.

Key Takeaways

  • Paper savings bonds can be cashed at any bank or credit union with your ID, or mailed to the Treasury if your bank won't redeem them.
  • Series EE and I bonds held for less than five years incur a penalty of the last three months of interest, so the timing of redemption affects how much you receive.
  • TreasuryDirect bonds are redeemed online through your account and deposited to your bank within a few business days.
  • The Treasury will redeem any bond you own directly if a financial institution cannot or will not, though this route takes longer than a bank redemption.

Penalties for cashing bonds before five years

Series EE and Series I bonds carry a penalty if you cash them before holding them for five years. The penalty is the loss of the last three months of interest you earned. This means you receive the principal plus interest earned, minus those three months of accrued interest.

Series HH bonds (no longer sold but still held by many people) have no early redemption penalty, though they do have a minimum holding period of six months. Series EE bonds issued before May 2003 and Series I bonds issued before May 2003 also have no penalty after five years, but the rules vary slightly by issue date—check your bond's details on TreasuryDirect or ask your bank.

If you are uncertain whether your bond has reached the five-year mark, the bank or Treasury can tell you the exact redemption value before you cash it. This lets you decide whether to redeem now or wait.

What happens to your tax liability when you redeem

The interest you earn on savings bonds is subject to federal income tax, but not state or local tax. You have two choices about when to report this income: you can report it in the year you cash the bond, or you can report it each year as the interest accrues (though most people do not).

The bank or Treasury will not automatically report the interest to the IRS. You are responsible for including it on your tax return. If you cashed a bond in 2024, you report that year's interest on your 2024 tax return, filed in 2025.

Keep the redemption receipt or confirmation from the Treasury. It shows the amount of interest earned, which you will need when you file your taxes. If you redeemed through TreasuryDirect, read and save your transaction confirmation.

Redeeming paper bonds through the Treasury by mail

If you have a physical bond and no bank will redeem it, you can mail it to the Treasury. You will need to fill out Form PD 1048, which is the official request for redemption of savings bonds. You can read this form from the Bureau of the Fiscal Service website or request it by phone.

Mail the completed form, your bond, and a copy of your ID to the address listed on the form. Include a letter stating your name, address, and the bond's serial number. The Treasury processes mailed redemptions in four to six weeks. Send the package by certified mail so you have proof of delivery.

This method is slower than using a bank, so use it only if your bank cannot redeem the bond or if you cannot visit in person. The Treasury charges no fee for this service.

Redeeming bonds through TreasuryDirect online

If your bonds are registered in TreasuryDirect, log into your 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 deposit the redemption amount to the bank account you have linked to your TreasuryDirect account. This transfer usually takes two to three business days. You will receive a confirmation email with the transaction details and the amount deposited.

TreasuryDirect redemptions are free and faster than mailing a paper bond. If you have forgotten your login information, you can reset it on the website using your email address and Social Security number.

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

If you own a bond but no longer have the physical certificate, check TreasuryDirect first. Many bonds issued in recent years are registered there automatically, and you can redeem them online without the paper certificate.

If the bond is not in TreasuryDirect and you cannot locate the certificate, contact the Treasury's Savings Bond Division by phone at 844-284-2676. Provide your name, Social Security number, and any details you remember about the bond (issue date, series, approximate value). The Treasury can search their records and confirm whether you own the bond.

If the bond is found, the Treasury can issue a replacement certificate or allow you to redeem it directly. This process takes longer than a standard redemption, so allow several weeks. You may need to provide additional documentation to prove ownership.

Cashing bonds held in a trust or estate

If you are redeeming a bond that was registered in someone else's name or held in a trust, the process differs slightly. For a bond in a deceased person's estate, you will need to present a death certificate and proof that you are authorized to act on behalf of the estate (such as letters testamentary or a court order).

For a bond held in a trust, bring the trust document and your ID to the bank, or include a certified copy of the trust with any mailed redemption request. The bank or Treasury will verify that the trust is valid and that you have authority to redeem on its behalf.

Contact the Treasury or your bank in advance if you are unsure what documents to bring. Different institutions may have slightly different requirements, and confirming ahead of time prevents delays.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will redeem savings bonds, but not all. Call your bank first to confirm they offer this service. If they do not, you can use a different bank or redeem directly through the Treasury.

What if my bond is worth less than I expected?

If you held the bond for less than five years, the penalty of three months' interest reduces the payout. You can also check the current value on TreasuryDirect before redeeming to see the exact amount you will receive.

Do I need to report the interest on my taxes if I cash the bond?

Yes. The interest earned on savings bonds is taxable federal income. You report it on your tax return in the year you redeem the bond. Keep your redemption receipt as proof of the amount earned.

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

Bank redemptions are usually when ready or within one business day. TreasuryDirect transfers take two to three business days. Mailed redemptions to the Treasury take four to six weeks.

Can I redeem a bond that is still earning interest?

Yes, you can redeem a bond at any time after the minimum holding period (six months for most bonds). The interest you have earned up to that point is included in your redemption amount, minus any early redemption penalty if applicable.