Not every bank will cash your savings bond, and some won't cash them at all

You cannot walk into any bank and expect them to cash a savings bond. Most banks will only cash bonds if you have an account with them, and even then, many branches refuse to handle them at all. The safest route is the U.S. Treasury itself — either through TreasuryDirect online or by mail — because they will always cash any bond you own, no questions asked. If you want to use a bank, call ahead first and ask whether they cash savings bonds for account holders.

The reason banks are reluctant is simple: they have to verify the bond is real, check that you are the owner, and handle the paperwork correctly. A teller mistake can create a federal problem. Many banks decided the liability is not worth the occasional customer request, so they stopped offering the service entirely.

Key Takeaways

  • The U.S. Treasury will cash any savings bond you own through TreasuryDirect online or by mail, with no account requirement.
  • Banks that do cash bonds typically require you to be an account holder and may charge a fee or refuse service without explanation.
  • Call your bank before you visit — many branches do not cash bonds even if the bank's policy allows it.
  • If your bank refuses, the Treasury's mail-in process takes about two weeks and costs nothing.

How to cash a bond through your bank

If your bank does cash savings bonds, bring the physical bond itself, a government-issued photo ID, and your account number. The teller will examine the bond to confirm it has matured (or that you have permission to cash it early), verify your identity, and process the deposit into your account. Some banks will deposit the money the same day; others take one to three business days.

Not all branches of the same bank handle bonds the same way. A branch across town might refuse even though your home branch says yes. Call the specific branch where you plan to go, ask for the teller line or customer service, and confirm they cash savings bonds before you make the trip. If they say no, do not argue — move to the Treasury option instead.

A few banks charge a fee to cash bonds, usually $5 to $15. Ask about this when you call. If the fee seems high, the Treasury route is free.

Cashing a bond directly through the U.S. Treasury online

If you own a Series I or Series EE bond issued after 2005, you can cash it through TreasuryDirect, the Treasury's online system. Log in to your account, select the bond you want to redeem, and request the cash-out. The money goes into your linked bank account within one to three business days. This is the fastest and most reliable method if you have internet access and your bonds are in the TreasuryDirect system.

You will need to have set up a TreasuryDirect account when the bond was purchased, or have had the bond transferred into one. If you bought the bond years ago and never created an account, you cannot use this method — you will need to use the mail-in process instead.

Cashing a bond by mail to the Treasury

For bonds not in TreasuryDirect, or if you prefer not to use the online system, you can mail the bond directly to the Treasury. Send the physical bond, a completed FS Form 1522 (Request for Payment of Savings Bond), a copy of your photo ID, and a letter stating your name, address, and the amount you are requesting to the address listed on the Treasury's website. Include your bank account information if you want the money deposited directly; otherwise, they will mail you a check.

The process takes about two weeks from the date the Treasury receives your package. Mail it certified with return receipt so you have proof of delivery. There is no fee, and the Treasury will not refuse to cash the bond as long as it is yours and has matured (or you meet the early redemption rules).

What to do if your bond has not matured yet

Savings bonds earn interest over time, and cashing them early means you lose some of that interest. Series EE bonds, for example, have a 20-year original maturity period. If you cash one before it matures, you forfeit the last three months of interest. Series I bonds have different rules depending on when you bought them.

Before you cash any bond, check the maturity date on the bond itself or in your TreasuryDirect account. If it has not matured and you are not willing to lose the interest penalty, wait. If you need the money urgently, the penalty may be worth it — but the bank or Treasury will not stop you from cashing early, so the choice is yours.

Bonds issued before 2005 or lost bonds

If your bond was issued before 2005, it is almost certainly not in TreasuryDirect, and you will need to use the mail-in method or find a bank willing to cash it. Older bonds are physical certificates, and the Treasury still honors them — but the process is slower because everything is done by hand.

If you have lost the physical bond but remember buying it, contact the Treasury directly. They can search their records and issue a replacement, though this takes several weeks. You will need proof of purchase (old bank statements, receipts, or correspondence) to speed up the search.

Why some banks refuse to cash bonds

Banks stopped cashing savings bonds for several reasons. First, the volume is low — most customers do not cash bonds at banks anymore, so staff are not trained to do it. Second, the liability is high: if a teller makes a mistake, the bank is responsible. Third, the profit margin is zero — the bank gets nothing for the service. For a large bank processing millions of transactions daily, a handful of bond redemptions are not worth the training and risk.

Smaller banks and credit unions are sometimes more willing to cash bonds because they have fewer transactions overall and may see it as a service to long-term customers. If your bank refuses, a credit union you belong to might not. But the Treasury is always the backup option.

Frequently Asked Questions

Do I need to cash the entire bond at once?

Yes. You cannot cash part of a savings bond. You either redeem the whole thing or none of it. If you own multiple bonds, you can cash them one at a time, but each individual bond is an all-or-nothing transaction.

What if I lost the physical bond?

Contact the Treasury directly with proof of purchase. They can issue a replacement or, if the bond is in TreasuryDirect, you can redeem it online without the physical certificate. The replacement process takes several weeks.

Can someone else cash my bond if I give them permission?

No. Only the registered owner can cash a savings bond. If you are the owner but cannot go in person, you can authorize someone to act on your behalf, but the process varies by bank and the Treasury. Ask your bank or the Treasury for a power of attorney form.

Will I owe taxes on the interest I earned?

Yes, but not immediately. When you cash the bond, the Treasury does not withhold taxes. You report the interest earned on your federal tax return for the year you cash it. Keep the receipt or confirmation from the bank or Treasury for your records.

What if the bank says they will cash it but then refuses at the counter?

This happens occasionally because the teller or branch manager makes the final call. If this occurs, ask to speak to the branch manager and explain you called ahead. If they still refuse, use the Treasury mail-in method — it is free and may provide to work.