Where to cash your bond depends on the bond type and who issued it

You can cash in a savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury if you own a paper bond. The process differs slightly between Series EE bonds (issued after 2005, which are electronic) and older paper bonds, and between bonds you own and bonds where you are listed as a beneficiary.

Electronic bonds held in TreasuryDirect (the Treasury's online system) can only be cashed through that same system — you cannot walk into a bank with them. Paper bonds can be cashed at a financial institution or mailed to the Treasury. The fastest route is usually your bank or credit union if you have an account there, because they can process the transaction in one visit.

Key Takeaways

  • Electronic Series EE bonds must be cashed through TreasuryDirect.gov, while paper bonds can be cashed at a bank, credit union, or by mailing them to the Treasury.
  • You will need the bond itself (if it is paper), a valid photo ID, and proof of Social Security number to cash a bond you own.
  • If you are cashing a bond as a beneficiary after the original owner's death, you will need a death certificate and may need to provide proof of your authority to act.
  • Savings bonds held for less than five years incur a penalty equal to three months of interest, so waiting until year five or later saves money.
  • The Treasury will send you a 1099-INT form for tax purposes if the bond earned more than $10 in interest during the year.

Cashing an electronic bond 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. The system will show you the current value, including any accrued interest, and will ask you to confirm the transaction. Once you confirm, the Treasury will deposit the funds into the bank account linked to your TreasuryDirect account within two business days.

You cannot partially redeem an electronic bond — you must cash the entire bond. If you own multiple bonds, you can choose which ones to redeem and leave others untouched. The Treasury does not charge a fee for this transaction.

Cashing a paper bond at a bank or credit union

Bring the physical bond certificate, a valid photo ID (driver's license, passport, or state ID), and your Social Security card or a document showing your Social Security number. Walk into any bank or credit union branch and ask to redeem the bond. Most institutions will cash it on the spot, though some may require you to have an account with them — call ahead if you are unsure.

The teller will verify the bond's authenticity, check that you are the registered owner, and process the redemption. You will receive a check or deposit to your account (if you have one there) within the same visit. Some banks charge a small fee for this service, typically $5 to $15, though many waive it for account holders.

Mailing a paper bond to the Treasury

If you do not have a bank account or prefer not to visit a branch, you can mail your paper bond directly to the Treasury. Send the bond certificate, a completed Form PD 1239 (available at treasurydirect.gov), a copy of your photo ID, and a copy of a document showing your Social Security number to the Bureau of the Fiscal Service at the address listed on the form.

Include a letter stating your name, address, and the amount you expect to receive. The Treasury will verify the bond and mail you a check to the address on file. This process typically takes two to four weeks. Do not send the original bond by regular mail — use certified mail with return receipt requested, or a tracked shipping service like FedEx or UPS.

Cashing a bond as a beneficiary

If the original owner has died and you are listed as a beneficiary or co-owner, you will need to provide a certified copy of the death certificate along with your ID and Social Security documentation. If you are the beneficiary but not the registered owner, you may also need to provide proof of your authority — this could be a will, a court order, or a letter of administration from the probate court, depending on your state and the bond's registration.

Contact the bank or the Treasury in advance to ask what documents they require. Rules vary by institution and by whether the bond was registered in one name or two. Some banks will not process beneficiary redemptions and will direct you to the Treasury instead.

Understanding the early redemption penalty

If you redeem a savings bond before it has been held for five years, you will lose the last three months of interest. For example, if you cash a bond after four years and nine months, you will receive the value as of four years and six months. This penalty applies to all Series EE and Series I bonds, regardless of when they were issued.

After five years, you can redeem without penalty. The interest you earn continues to accrue and compound for up to 30 years, so there is no time limit on when you must cash the bond — you can hold it longer if you wish. Check the bond's issue date before you redeem to see whether you will incur the penalty.

Tax reporting when you cash a bond

The interest you earned on the bond is subject to federal income tax. You can report it in the year you cash the bond, or you can report it annually as it accrues (if you have been doing so already). Most people report it when they redeem because it is simpler.

If the bond earned more than $10 in interest during the calendar year in which you cashed it, the Treasury or the financial institution will send you a Form 1099-INT by January 31 of the following year. Use this form when you file your tax return. You do not owe state or local income tax on savings bonds in most states, but check your state's rules or consult a tax professional if you are unsure.

Frequently Asked Questions

Can I cash a savings bond if I lost the certificate?

Yes. Contact the Treasury at treasurydirect.gov or call 844-284-2676 to report the loss and request a replacement. You will need to provide proof of ownership (your ID and Social Security number) and the bond's serial number if you have it. The process takes several weeks.

What if the bond is registered in someone else's name but I have it in my possession?

You cannot cash it. Only the registered owner or a beneficiary with proper documentation can redeem a bond. If the owner is deceased, you will need a death certificate and proof of your authority. If the owner is alive, they must redeem it themselves or sign a power of attorney authorizing you to act on their behalf.

Do I have to cash the entire bond or can I cash part of it?

With electronic bonds in TreasuryDirect, you must redeem the entire bond. With paper bonds, you can only redeem the whole certificate — you cannot split it. If you want to keep some of the money invested, you could purchase a new bond after cashing the old one.

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

At a bank or credit union, you usually receive the funds the same day. Through TreasuryDirect, the deposit takes two business days. By mail to the Treasury, expect two to four weeks. Using certified mail or a tracking service reduces the risk of loss.

Will I owe taxes on the interest when I cash the bond?

Yes, the interest is taxable federal income in the year you redeem the bond. You will receive a Form 1099-INT if the interest exceeds $10. Most states do not tax savings bond interest, but verify your state's rules. You can also choose to report the interest annually as it accrues instead of waiting until redemption.