Where you can cash savings bonds

You can cash a savings bond at most banks and credit unions, even if you don't have an account there. Call ahead to confirm they handle savings bonds — some smaller branches don't. Bring the bond itself, a government-issued ID, and your Social Security number or tax ID.

If your bank won't cash it, the U.S. Department of the Treasury will cash bonds by mail. Send the bond, a completed Form FS 1522 (Request for Payment of Savings Bond), a copy of your ID, and a letter stating your Social Security number to the Treasury Retail Securities Site in Parkersburg, West Virginia. Processing takes about four weeks. You can read Form FS 1522 from TreasuryDirect.gov.

Some employers offer payroll savings plans that let you buy bonds directly from your paycheck. Those employers may also cash bonds for you — ask your human resources or payroll department.

Key Takeaways

  • Most banks and credit unions will cash savings bonds without requiring you to be a customer, but you must bring the physical bond and a government ID.
  • You cannot cash a bond before it reaches final maturity, which is 30 years from issue for Series EE and I bonds, though you can redeem most bonds after one year.
  • If you cash a bond before five years have passed, you lose the last three months of interest as a penalty.
  • The Treasury will cash bonds by mail if no local bank will do it, though the process takes about four weeks.
  • You will owe federal income tax on the interest your bond earned, and you may owe state and local tax depending on where you live.

When you can cash a savings bond

You can cash most savings bonds after one year from the issue date. However, if you cash the bond before five years have passed, you lose the last three months of interest as a penalty. For example, if you bought a bond on January 1, 2020, and cashed it on March 1, 2024, you would receive interest only through December 1, 2023 — not through March 1, 2024.

Series EE bonds and Series I bonds reach final maturity at 30 years from the issue date. You cannot cash them after that point, though the Treasury will stop paying interest once they mature. Series HH bonds (no longer sold) mature at 20 years. If you own an older bond type, check TreasuryDirect.gov or call the Treasury at 844-284-2676 to confirm the maturity date.

The issue date is printed on the bond itself. If you cannot read it clearly, the Treasury can look up the date using your Social Security number and the bond series and denomination.

What happens to the interest when you cash

The interest your bond earned is added to the cash value you receive. You do not receive it separately. For Series EE bonds, the interest is the difference between what you paid and what the bond is worth on the day you cash it. For Series I bonds, the interest rate changes every six months based on inflation, and your total interest is calculated from the issue date through the redemption date.

You will owe federal income tax on all the interest your bond earned. You can report this tax in the year you cash the bond, or you can report it each year as the bond earns interest — but most people wait until they cash it. State and local income tax on bond interest varies by state. Some states do not tax bond interest at all. Check your state's tax authority website or ask a tax preparer in your state.

If you cashed the bond to pay for education expenses, you may be able to exclude some or all of the interest from federal tax under the Education Savings Bond Program. This requires filing Form 8815 with your tax return. The rules are strict — the bond must have been issued when you were at least 24 years old, and the school must be accredited. A tax preparer can tell you whether you may have access to.

Cashing bonds owned by a minor or deceased person

If a minor owns the bond, a parent or legal guardian must cash it on the minor's behalf. Bring the bond, the minor's Social Security number, the guardian's ID, and proof of guardianship (such as a birth certificate showing the parent's name, or a court order if guardianship is not obvious from family relationship).

If the bond owner has died, the person handling the estate (the executor or administrator) can cash the bond. Bring the bond, the deceased person's Social Security number, the executor's ID, and a certified copy of the death certificate. Some banks may also ask for a copy of the will or a court document showing who is authorized to handle the estate. The Treasury will accept these documents by mail if no local bank will process it.

What to expect at the bank

Bring the bond in person if possible. The teller will examine it to confirm it has not been altered, check that you are the registered owner or an authorized representative, and verify your identity. The process usually takes 10 to 15 minutes. You will receive the cash value as a check or, at some banks, as a deposit to your account if you have one there.

If the bond is registered to two people (such as "John Smith or Jane Smith"), either person can cash it alone. If it says "and" instead of "or" — meaning both owners must agree — both people must be present, or one person must bring a notarized letter from the other authorizing the redemption.

Some banks may ask you to fill out a short form confirming your identity and Social Security number. This is normal. They are required to report the transaction to the IRS if the bond value is over a certain amount, so they need your information on file.

Reinvesting the money into new bonds

If you want to buy new savings bonds with the money from the bond you just cashed, you can do so through TreasuryDirect.gov. You can buy Series EE or Series I bonds online using a bank account or debit card. The minimum purchase is $25 for electronic bonds. Paper bonds are no longer sold to most people, though you can still request them as part of your federal tax refund.

Series I bonds are often a better choice than Series EE bonds in high-inflation periods, because the interest rate adjusts every six months to match inflation. Series EE bonds pay a fixed rate set when you buy them. Compare the current rates on TreasuryDirect.gov before you decide which to buy.

Common mistakes to avoid

Do not wait until the bond reaches final maturity to cash it. Once a bond stops earning interest, there is no reason to hold it. Check the maturity date before you cash, and if the bond is close to maturity, cash it soon.

Do not assume you can cash a bond before one year has passed. Most banks will refuse, and the Treasury will not process it by mail either. Mark your calendar for the one-year anniversary of the issue date.

Do not lose the physical bond. Unlike stocks or mutual funds, savings bonds are not held in a central registry that you can access online (except for bonds bought through TreasuryDirect after 2005). If the paper bond is lost or destroyed, you must file a claim with the Treasury, which can take several months. Keep bonds in a safe place such as a safe deposit box or home safe.

Do not forget to report the interest on your tax return. The bank does not send you a 1099 form for savings bond interest — you are responsible for tracking it. Keep a record of the bond's issue date, denomination, and the date you cashed it, so you can calculate the interest earned.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but some smaller branches or banks do not handle them. Call ahead to confirm. If your bank refuses, the Treasury will cash it by mail, though it takes about four weeks.

What if I lost the bond or it is damaged?

Contact the Treasury at 844-284-2676 or file a claim online through TreasuryDirect.gov. You will need to provide the bond's series, denomination, and issue date. The Treasury can look up the bond using your Social Security number. Processing a lost or damaged bond claim takes several months.

Do I have to pay taxes on the interest right away?

No. You report the interest on your tax return for the year you cash the bond. If you cashed it in 2024, you report the interest on your 2024 tax return filed in 2025. Some people report interest each year as the bond earns it, but this is less common and more complicated.

Can I cash a bond if someone else's name is on it?

Only if you are the registered owner or an authorized representative such as a parent, guardian, or executor. If the bond says "or" between two names, either owner can cash it alone. If it says "and", both owners must be present or one must provide a notarized authorization letter.

What if the bond is worth more than I expected?

Series I bonds earn interest that changes every six months based on inflation. If inflation was high during the time you held the bond, the interest rate was higher, and the bond is worth more. Check TreasuryDirect.gov or call 844-284-2676 to see the exact value before you cash it.