Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, even if you did not buy it there. Walk in with the bond itself and a photo ID, and the teller can process it on the spot. Some banks may ask you to have an account with them, but many will cash it for non-customers as well — call ahead to confirm.

If you prefer not to visit a bank in person, you can mail the bond to the U.S. Department of the Treasury's Bureau of the Fiscal Service. Send it with a completed form (FS Form 1522 for Series EE and I bonds, or FS Form 1048 for older series) and a copy of your ID. The Treasury will mail you a check, though this takes several weeks. You can download the forms from treasurydirect.gov.

For bonds held in TreasuryDirect (the online account system where you buy bonds directly from the government), you do not need a physical bond at all. You can redeem them through your TreasuryDirect account and have the money deposited into your bank account within a few business days.

Key Takeaways

  • Most banks and credit unions will cash a savings bond in person if you bring the bond and a photo ID, usually within minutes.
  • You can mail a physical bond to the Treasury with form FS Form 1522 or FS Form 1048 and a copy of your ID if you cannot visit a bank.
  • Bonds held in a TreasuryDirect account can be redeemed online and deposited to your bank account in a few business days.
  • Series EE and I bonds have a penalty if you cash them before five years have passed — you lose the last three months of interest.
  • The bank or Treasury will report the interest you earned to the IRS, and you will owe income tax on that interest in the year you cash the bond.

The five-year holding period and early redemption penalty

If you cash a Series EE or Series I bond before it has been held for five years, you will lose the last three months of interest. This is not a fee — it is a reduction in the amount you receive. For example, if a bond has earned $100 in interest but you cash it after four years, you will receive only $75 of that interest, and the remaining $25 stays with the Treasury.

After five years, you can cash the bond without any penalty, no matter how much longer you hold it. Older series bonds (Series A through D, and Series H and HH) have different rules depending on when they were issued, so check the Treasury's website or ask the bank teller if you are unsure about an older bond.

What happens to the interest you earned

The interest on a savings bond is subject to federal income tax. When you cash the bond, the bank or Treasury will report the total interest earned to the IRS on a Form 1099-INT. You will owe income tax on that interest in the tax year you cash the bond, even if you earned the interest over many years.

You do not owe state or local income tax on savings bond interest — only federal tax applies. If you are cashing a bond that has been held for a long time, the interest amount can be substantial, so factor that into your tax planning if you are cashing multiple bonds in the same year.

Cashing a bond in someone else's name

If you are the registered owner of a bond, you can cash it. If the bond is registered to someone else and you are trying to cash it on their behalf, you will need a power of attorney or to be named as a co-owner on the bond itself. A bank teller can tell you what documents they need to see.

If the bond owner has passed away, the bond becomes part of their estate. The executor or administrator of the estate can cash it, but they will need to provide a death certificate and proof of their authority to handle the estate. Contact the bank or the Treasury for the specific documents required.

Cashing a bond without the physical certificate

If you have lost the physical bond certificate, you can still cash it. Contact the Treasury's Bureau of the Fiscal Service directly at 844-284-2676 or visit treasurydirect.gov. You will need to provide information about the bond — the series, denomination, and the serial number if you have it — along with proof of ownership.

The Treasury can look up the bond in their records and issue a replacement or process a redemption without the physical certificate. This process takes longer than walking into a bank with the bond in hand, but it is possible. Keep records of any bonds you own, including the serial numbers, so you can recover them if they are lost or damaged.

Tax reporting and what to expect on your tax return

When you cash a savings bond, the bank or Treasury will send you a Form 1099-INT showing the interest earned. You will report this interest on your federal tax return in the year you cash the bond. If you earned interest over many years but only cashed the bond in 2024, all of that interest is taxable in 2024.

Some people choose to report the interest each year as it accrues, rather than waiting until they cash the bond. This requires filing Form 8818 with your tax return. If you own multiple bonds and plan to cash them over several years, spreading the tax liability across multiple years may reduce your tax burden. Talk to a tax professional if you are cashing a large bond or multiple bonds at once.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks will cash a savings bond, but policies vary. Some require you to have an account with them, while others will cash bonds for anyone with a photo ID. Call your bank first to confirm they offer this service and whether you need an account.

What if my savings bond is damaged or torn?

A slightly damaged bond can usually still be cashed at a bank. If it is severely damaged or the serial number is illegible, contact the Treasury directly at 844-284-2676. They can verify the bond in their records and process a redemption or replacement.

How long does it take to get my money after I cash a bond?

At a bank, you receive the money immediately or within one business day. If you mail the bond to the Treasury, expect four to six weeks for the check to arrive. TreasuryDirect deposits typically appear in your bank account within three to five business days.

Do I have to pay taxes on the interest when I cash the bond?

You will owe federal income tax on the interest, reported on Form 1099-INT. The tax is due in the year you cash the bond. You do not owe state or local tax on savings bond interest, and the bank does not withhold the tax — you pay it when you file your return.

What if I want to cash only part of a bond?

You cannot cash part of a bond. Savings bonds are redeemed in full for their current value, which includes the principal and all accrued interest. If you need only some of the money, you will receive the full amount and can deposit the rest in a savings account.