Where to cash your bonds depends on the type and amount

You can cash in most U.S. savings bonds at a bank or credit union, through the U.S. Treasury's online system, or by mail. The method that works for you depends on whether your bonds are paper or digital, how much you're cashing in, and whether the bonds have reached final maturity.

Paper bonds issued before 2012 can only be cashed at a financial institution or by mail. Digital bonds held in TreasuryDirect (the Treasury's online account system) can be redeemed directly through your account. Some banks will cash bonds for non-customers, but many require you to have an account with them.

Key Takeaways

  • Paper savings bonds can be cashed at most banks and credit unions, but call ahead because not all institutions handle them and some require you to be a customer.
  • Digital bonds in TreasuryDirect can be redeemed online within one to three business days without visiting a bank.
  • Bonds cashed before five years have passed lose three months of interest as a penalty, except for Series I bonds issued after May 2003.
  • You will receive a 1099-INT form in January for the interest earned, which counts as taxable income in the year you cash the bond.
  • If a bond has reached final maturity (30 years for Series EE, 30 years for Series I), it stops earning interest and should be cashed or reissued.

Cashing paper bonds at a bank or credit union

Call your bank or credit union first. Not every branch handles savings bonds, and some institutions only cash them for account holders. Ask whether they cash bonds in person and what documents you'll need to bring.

When you go in, bring the physical bond certificate and a government-issued photo ID. The teller will verify the bond's serial number and current value using the Treasury's redemption tables. You'll sign the back of the bond in front of the teller, and they'll give you the cash or deposit it into your account. The process usually takes a few minutes if the branch handles bonds regularly.

If your bank won't cash the bond, ask whether they can send it to a Federal Reserve Bank on your behalf. Some do this as a service, though it may take longer and could involve a small fee.

Redeeming digital bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "ManageDirect" section and select the bond you want to redeem. You'll see the current value, which includes all accrued interest.

Click "Redeem" and confirm the transaction. The money will be transferred to the bank account linked to your TreasuryDirect account within one to three business days. You don't need to visit a bank or provide any documents beyond your account login.

If you've forgotten your TreasuryDirect password, use the "Forgot Password" link on the login page. If you no longer have access to the email address associated with your account, you'll need to contact TreasuryDirect customer service at 844-284-2676 to regain access.

Mailing bonds to the Federal Reserve

If you can't reach a bank that handles bonds or prefer not to visit in person, you can mail your paper bond to a Federal Reserve Bank. Download the form FS Form 1522 from the Treasury website, fill it out completely, and include it with your bond.

Mail the package to the Federal Reserve Bank serving your region. The Treasury website lists all regional addresses. Send it by certified mail with return receipt so you have proof of delivery. The Federal Reserve will verify the bond, process the redemption, and mail you a check, which typically takes two to four weeks from the date they receive it.

Do not send bonds by regular mail without tracking. Bonds are bearer instruments, meaning whoever holds the physical certificate can cash it, so loss in the mail means permanent loss of the money.

Understanding the early redemption penalty

If you cash a Series EE or Series I bond before it has been held for five years, you lose the last three months of interest. For example, if you cash a bond after four years and nine months, you receive interest only through four years and six months.

Series I bonds issued after May 2003 are an exception: they have no penalty for early redemption, though you still lose three months of interest if cashed before five years. Series HH bonds and older bond types have different rules; check the Treasury's bond type guide if you hold bonds issued before 2003.

Bonds that have reached final maturity (30 years for both Series EE and Series I) stop earning interest entirely. If you hold a bond past maturity, you're earning nothing, so cashing it or requesting a reissue makes sense from a financial standpoint.

Tax reporting when you cash a bond

The interest you earn on savings bonds is subject to federal income tax. You can choose to report the interest each year as it accrues, or you can wait and report all the interest in the year you cash the bond. Most people wait until redemption because it's simpler.

In January of the year after you cash the bond, the Treasury will mail you a 1099-INT form showing the total interest earned. You'll report this on your federal tax return. State and local taxes may also apply depending on where you live; check your state's tax rules.

If you cashed bonds in multiple years, you'll receive a separate 1099-INT for each year. Keep these forms with your tax records.

What to do if you've lost a bond or can't find it

If you have a paper bond but have lost the certificate itself, you can request a replacement through the Treasury's Lost Savings Bond claim process. Visit savingsbonds.gov and use the "Report Lost, Stolen, or Destroyed Savings Bonds" tool to file a claim with the Bureau of the Fiscal Service.

If you own a bond but don't know where it is or whether it's still active, search the Treasury Hunt tool at treasuryhunt.savingsbonds.gov. Enter your Social Security number and last name to see a list of any bonds registered to you. This works for both paper and digital bonds.

If a bond was registered to someone who has passed away, the process is more complex. The estate or authorized representative will need to provide a death certificate and proof of authority (such as letters testamentary) to redeem it. Contact the Federal Reserve Bank or the Treasury directly for guidance on your specific situation.

Frequently Asked Questions

Can I cash a savings bond before it matures?

Yes. You can cash most savings bonds anytime after one year of ownership. However, if you cash before five years have passed, you lose three months of interest as a penalty (except for Series I bonds issued after May 2003, which have no penalty but still lose three months of interest). Bonds held past final maturity should be cashed because they stop earning interest.

What if my bank says they don't cash savings bonds?

Ask if they can send it to the Federal Reserve on your behalf, or mail the bond yourself to your regional Federal Reserve Bank using FS Form 1522. You can also open a TreasuryDirect account and request a reissue of the bond into digital form, then redeem it online.

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

Digital bonds through TreasuryDirect take one to three business days. Paper bonds cashed at a bank are usually instant. Bonds mailed to the Federal Reserve take two to four weeks from the date they receive the package.

Do I have to pay taxes on the interest from my savings bond?

Yes, the interest is subject to federal income tax. You'll receive a 1099-INT form in January showing the total interest earned. You report this on your federal tax return. State and local taxes may also apply depending on where you live.

What happens if I cash a bond that's worth more than I expected?

The value shown when you redeem includes all accrued interest since purchase. If you held the bond longer than you remembered, or interest rates were higher than you expected, the final value will be higher. This is normal and not an error. The interest is still taxable income in the year you cash it.