You can redeem a savings bond at most banks, through the U.S. Treasury, or by mail

Redeeming a savings bond means turning it in for its current cash value. You do not have to wait until the bond reaches final maturity — you can cash it in at any time after you have owned it for one year. The fastest way is usually to walk into your bank with the bond and your ID. If your bank does not handle bonds, the U.S. Treasury's online system (TreasuryDirect) lets you redeem electronic bonds when ready, and you can mail paper bonds to a Federal Reserve Bank.

The amount you receive depends on the bond's type, the date you bought it, and how long you have held it. Series EE and Series I bonds earn interest monthly, so a bond bought five years ago is worth more than the same bond bought last month. If you redeem before five years have passed, you lose the last three months of interest as a penalty — this is the main cost of early redemption.

Key Takeaways

  • Paper bonds can be redeemed at most banks with your ID, or mailed to a Federal Reserve Bank with a form.
  • Electronic bonds held in TreasuryDirect can be redeemed online and the money reaches your bank account within one to three business days.
  • Redeeming a bond before five years have passed costs you the last three months of interest, but you can redeem after one year.
  • The redemption value includes all interest earned to date, and you will receive a 1099-INT form for tax purposes if the bond earned $10 or more in interest.

Redeeming a paper bond at your bank

Bring the physical bond certificate, your government-issued ID, and proof of your Social Security number (a Social Security card, tax return, or W-2 works). Most banks will cash the bond on the spot. The teller will look up the current value using the bond's series, denomination, and issue date, then give you a check or deposit the money into your account.

Not all banks redeem savings bonds — call ahead to confirm. If your bank does not, ask them to refer you to a bank that does, or use the Federal Reserve Bank route instead. Some credit unions also redeem bonds, so that is worth a call if your primary bank declines.

Redeeming an electronic bond through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section, find the bond you want to redeem, and select the redemption option. The system will show you the exact amount you will receive and ask you to confirm.

Once you confirm, the money is submitted for transfer to the bank account you have on file with TreasuryDirect. The transfer typically takes one to three business days. You will receive an email confirmation with the redemption date and amount. TreasuryDirect will send you a 1099-INT form by January 31 of the following year if your bond earned $10 or more in interest during that calendar year.

Redeeming a paper bond by mail

Complete Form PD F 1522 (the "Request to Redeem Savings Bonds" form), which you can read from treasurydirect.gov or request from a Federal Reserve Bank. Sign the form in front of a witness — this cannot be a family member, and the witness must also sign and print their name and address. Do not sign the bond itself.

Mail the signed form, the bond, a copy of your ID, and a copy of proof of your Social Security number to the Federal Reserve Bank serving your region. You can find the correct address on treasurydirect.gov under "Redeem Savings Bonds by Mail." Include a return address and consider sending the package by certified mail so you have proof of delivery. The Federal Reserve Bank will mail you a check, which typically arrives within four to six weeks.

Understanding the three-month interest penalty

If you redeem a bond before it has been held for five years, you forfeit the last three months of interest. For example, if you bought a Series EE bond on March 15, 2022, and redeem it on August 10, 2024 (just over two years), you receive interest only through May 15, 2024 — not through August 10. This penalty applies to both Series EE and Series I bonds.

After five years, you can redeem without losing any interest. This is why many people wait until the five-year mark if they do not need the money urgently. You can check the exact redemption value before you redeem by logging into TreasuryDirect or asking your bank.

What happens after you redeem

The bond stops earning interest the moment you redeem it. If you received a check by mail, you own the cash once you cash the check. If you redeemed through TreasuryDirect, the money is yours once it lands in your bank account.

You will owe federal income tax on the interest the bond earned. You do not owe tax on the original amount you paid — only on the earnings. If the bond earned $10 or more in interest during a calendar year, the Treasury will send you a 1099-INT form by January 31 showing the interest amount. Report this on your federal tax return. State and local taxes may also explore depending on where you live.

Redeeming bonds owned by a minor or deceased person

If you are redeeming a bond owned by a minor, you will need the minor's Social Security number, your ID, and proof that you are the parent or legal guardian. Some banks require a court order or guardianship document. Call ahead to ask what your bank needs.

If the bond owner has died, the person handling the estate (the executor or administrator) can redeem the bond. You will need the death certificate, proof of your authority to act on behalf of the estate, and your ID. The redemption value becomes part of the estate and may be subject to estate tax depending on the total estate value and your state's rules.

Frequently Asked Questions

Can I redeem a savings bond before one year has passed?

No. Federal rules require you to hold a savings bond for at least one year before you can redeem it. If you need cash sooner, you cannot access the bond's value.

What if I lost my paper bond or it was damaged?

Contact the Treasury at 844-284-2676 or visit treasurydirect.gov to report it. You will need to provide the bond's series, denomination, and issue date. The Treasury can issue a replacement or, in some cases, process a redemption without the physical certificate if you can verify ownership.

Do I have to redeem all my bonds at once?

No. You can redeem one bond, some bonds, or all bonds whenever you choose. Each bond is redeemed individually at its own value based on how long you have held it.

Will redeeming a bond affect my taxes or benefits?

Redeeming a bond itself does not affect your taxes — you owe tax only on the interest earned, not on the principal. However, the interest income may affect means-tested benefits like Supplemental Security Income. Consult a tax professional if you receive government benefits and are redeeming a bond with significant interest.

What if my bank says they cannot redeem my bond?

Ask them which banks in your area do redeem bonds. If none are nearby, use the mail-in method through the Federal Reserve Bank, or redeem through TreasuryDirect if your bond is electronic. Both routes take longer but work reliably.