Where and how to cash in your savings bond

You can redeem a US savings bond at most banks and credit unions, or directly through the US Department of the Treasury if your financial institution won't cash it. The process depends on whether your bond is paper or digital, and how long you've held it.

Paper bonds issued before May 2003 can be redeemed at a bank or credit union by bringing the bond itself, a valid ID, and proof of Social Security number. Digital bonds held in TreasuryDirect (the Treasury's online platform) are redeemed by logging into your account and requesting a transfer to your bank account — this takes three to five business days.

The Treasury will not redeem a bond in person at a local office. If your bank refuses to cash it, you can mail the bond to the Bureau of the Fiscal Service with a completed Form PD 1522, which takes four to six weeks.

Key Takeaways

  • Paper savings bonds can be cashed at most banks and credit unions with a valid ID and proof of Social Security number.
  • Digital bonds in TreasuryDirect are redeemed online and transferred to your bank account within three to five business days.
  • Series EE and I bonds held for less than five years carry a penalty: the last three months of interest is forfeited.
  • The Treasury issues a Form 1099-INT for the interest earned, which you report on your tax return for the year you redeem the bond.
  • If a bank will not cash your bond, you can mail it to the Bureau of the Fiscal Service with Form PD 1522 as a backup option.

Redeeming paper bonds at a bank or credit union

Walk into any bank or credit union branch with your paper bond, a government-issued photo ID, and documentation of your Social Security number (a Social Security card, tax return, or W-2 works). The teller will verify the bond's serial number and your identity, then issue you a check or deposit the funds directly to your account if you have one there.

Not every branch will cash bonds, so call ahead. Larger branches are more likely to handle them than smaller ones. If the branch refuses, ask for the name of the manager and request they contact their operations center — some institutions have policies against cashing bonds, but many will do it as a courtesy if asked directly.

The bank will not withhold taxes on the redemption. You will receive the full face value plus all accrued interest, but you are responsible for reporting the interest on your tax return when you file.

Redeeming digital bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to "Manage My Securities" 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 three to five business days. Make sure your bank account information is current before you request the redemption — if the account number is wrong, the transfer will fail and you will need to contact TreasuryDirect to resubmit.

You can redeem a digital bond at any time after you own it, but if you redeem a Series EE or I bond before it has been held for five years, you will lose the last three months of interest as a penalty.

Early redemption penalties and timing

Series EE and I bonds carry a penalty if redeemed before five years of ownership: you forfeit the last three months of interest. This means if you bought a bond on January 15, 2020, and redeem it on January 14, 2025, you lose interest that would have been credited through October 14, 2024.

Series HH bonds (no longer sold but still held by many people) have different rules: they can be redeemed at any time after six months, with no penalty, but they stop earning interest 20 years after issue.

If you are unsure whether your bond has reached the five-year mark, check the issue date on the bond itself or in your TreasuryDirect account. The issue date is the first day of the month in which you purchased it.

What happens to the interest you earned

The interest on a savings bond is not paid separately — it is added to the redemption value. When you cash a $100 Series EE bond that has earned $50 in interest, you receive $150 total.

The Treasury reports the interest to the IRS on a Form 1099-INT issued in January of the year after you redeem the bond. You must report this interest as income on your federal tax return for that year, even though you did not receive it as a separate payment.

If you held the bond for many years, the interest may be substantial. Some people redeem bonds in a year when their income is lower to reduce their tax bracket, though this is a personal decision based on your overall tax situation.

If a bank will not cash your bond

Some banks have stopped cashing savings bonds due to staffing or policy changes. If your bank refuses, ask to speak with a manager and explain that you are trying to redeem a US Treasury security. Many will make an exception.

If the bank still refuses, you can mail the bond to the Bureau of the Fiscal Service. Complete Form PD 1522 (available at treasurydirect.gov), sign it in front of a notary public or bank officer, and mail it with your bond to the address listed on the form. Include a copy of your ID and proof of Social Security number.

Processing takes four to six weeks. The Treasury will mail you a check to the address on file. This is slower than a bank redemption but works if no local institution will cash the bond.

Redeeming bonds held by a minor or deceased person

If you are redeeming a bond registered to a minor, you will need the minor's Social Security number, a valid ID for the minor (or a birth certificate), and proof that you are the parent or legal guardian. Some banks will ask for a court order or guardianship papers.

If the bond owner has died, the person redeeming the bond must provide a death certificate and proof of authority to act on behalf of the estate — usually a will, letters testamentary, or a court order. The redemption value becomes part of the estate and is subject to probate rules in your state.

Frequently Asked Questions

Can I redeem a savings bond before it matures?

Yes. Series EE and I bonds can be redeemed at any time after you own them, but if you redeem before five years, you lose the last three months of interest. Series HH bonds can be redeemed after six months with no penalty.

What if I lost my paper bond?

Contact the Bureau of the Fiscal Service at 844-284-2676 or treasurydirect.gov. You will need to file a claim with proof of purchase (like a bank statement or receipt) and your Social Security number. The process takes several months.

Do I have to report the interest on my taxes?

Yes. The Treasury reports the interest to the IRS on Form 1099-INT, and you must include it as income on your federal tax return for the year you redeem the bond.

Can I redeem a bond online if it's a paper bond?

No. Paper bonds cannot be redeemed through TreasuryDirect. You must take the physical bond to a bank, credit union, or mail it to the Bureau of the Fiscal Service with Form PD 1522.

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

At a bank: same day or next business day. Through TreasuryDirect: three to five business days. By mail to the Treasury: four to six weeks.