Where to cash your savings bonds

You can cash savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury if you own them electronically. Walk into any branch where you have an account, bring the physical bonds and a valid ID, and ask to redeem them. The teller will verify the bonds, check that they have reached final maturity or that you meet the early redemption rules, and process the payment on the spot or within a few business days.

If your bonds are registered in the Treasury's electronic system (called TreasuryDirect), you do not have physical certificates to bring anywhere. Instead, log into your TreasuryDirect account online, navigate to the "Manage My Securities" section, select the bonds you want to cash, and request redemption. The money lands in your linked bank account within a few business days.

For paper bonds you no longer have access to—lost, destroyed, or held by a deceased relative's estate—contact the Bureau of the Fiscal Service directly. They can issue a replacement or process a claim, but the timeline is longer and you will need to provide proof of ownership and, in some cases, a death certificate or police report.

Key Takeaways

  • Series EE and I bonds purchased before May 2003 are paper certificates you bring to a bank; anything after that is usually electronic and redeemed through TreasuryDirect online.
  • You can cash bonds early without penalty, but Series EE and I bonds lose the last three months of interest if redeemed before five years of ownership.
  • Banks process redemptions the same day or within a few business days, while TreasuryDirect transfers take three to five business days.
  • If you lose a paper bond or inherit one, the Bureau of the Fiscal Service can issue a replacement, but the process takes several weeks and requires proof of ownership.

The five-year rule and early redemption penalties

Series EE and Series I savings bonds impose a penalty if you cash them before holding them for five years. The penalty is the loss of the last three months of interest—not a percentage fee, but the actual interest that would have accrued in those final months. If you have held the bond for five years or longer, you receive the full current value with no reduction.

This rule applies only to Series EE and I bonds. Series HH bonds, which are older and less common, have different rules depending on when they were issued. If you are unsure which type you own, check the bond itself—the series letter is printed clearly on the face—or log into TreasuryDirect to see the details.

The five-year clock starts from the issue date, not the purchase date. If you bought a bond on June 15, 2024, the five-year mark is June 15, 2029. Redeeming on June 14, 2029 triggers the three-month penalty; redeeming on June 15 or later does not.

What happens to interest when you cash a bond

When you redeem a savings bond, you receive the original purchase price plus all interest earned up to the redemption date. The interest is not paid separately—it is added to the principal and you receive one lump sum. For example, if you paid $50 for a Series I bond ten years ago and it has earned $18 in interest, you receive $68 total.

The interest you receive is taxable income in the year you redeem the bond, unless you have been reporting it annually on your tax return (which most people do not do). When you cash the bond, the bank or TreasuryDirect will not withhold taxes automatically. You are responsible for reporting the interest on your federal tax return, and you may owe state income tax as well depending on where you live.

If you have a large number of bonds maturing in the same year, the interest from all of them counts as income that year, which could push you into a higher tax bracket. Some people space out redemptions across multiple years to manage their tax liability, though this requires planning ahead.

Cashing bonds held in someone else's name or an estate

If a bond is registered in someone else's name and you are the executor or beneficiary of their estate, you cannot simply walk into a bank and cash it. The bank will require proof that you have legal authority to act on behalf of the deceased. This usually means a death certificate, a copy of the will or trust, and sometimes letters testamentary from the probate court.

Bring these documents to the bank along with the physical bonds. The process takes longer than a standard redemption—typically two to four weeks—because the bank must verify your authority and coordinate with the Treasury. If the bonds are in TreasuryDirect, you will need to contact the Bureau of the Fiscal Service to request a transfer of ownership to the estate or to yourself as the authorized representative.

If the deceased owned bonds jointly with you (as "owner and beneficiary"), you may be able to redeem them more quickly by presenting the death certificate and proof of the joint ownership. Ask the bank what documents they need before you visit.

Replacing lost or destroyed bonds

If you own a paper savings bond that you have lost, damaged beyond recognition, or that was destroyed in a fire or flood, you can request a replacement from the Bureau of the Fiscal Service. You will need to complete Form PD F 1048 (Application for Relief—Bonds) and provide as much information as you can about the bond: the series, denomination, approximate issue date, and the name and Social Security number of the owner.

The Bureau will search their records to confirm the bond exists and that it has not already been redeemed. If they find it, they will issue a replacement certificate or, if you prefer, deposit the value into your TreasuryDirect account. The process typically takes four to eight weeks.

If you cannot provide enough information to identify the bond, the Bureau may deny the request. Keep your bond purchase receipts or statements in a safe place so you have proof of what you own if this ever happens.

Tax reporting when you redeem bonds

When you cash a savings bond, the bank or TreasuryDirect does not issue a 1099-INT form automatically. You are responsible for reporting the interest income on your federal tax return. If you redeemed bonds totaling more than $1,500 in interest during the year, the financial institution may issue a 1099-INT, but this is not may provide.

Keep a record of every bond you redeem: the purchase price, the redemption date, and the total amount received. Subtract the purchase price from the total to calculate the interest earned. Report this interest on Schedule B (Interest and Ordinary Dividends) of your Form 1040.

If you have questions about how to report the interest or whether you owe state taxes on the redemption, consult a tax professional. The rules vary by state, and some states do not tax savings bond interest at all.

Timing and processing: bank vs. TreasuryDirect

If you redeem paper bonds at a bank, you typically receive the money the same day or within one to three business days. The bank verifies the bonds against the Treasury's records, confirms they are not reported as lost or stolen, and processes the payment. Bring your ID and the physical bonds; some banks may require you to have an account with them, though many will cash bonds for non-customers for a small fee.

If you redeem electronic bonds through TreasuryDirect, the money is transferred to your linked bank account within three to five business days. You initiate the redemption online, and there is no in-person step. The delay is longer because the Treasury batches redemptions and processes them in cycles.

Plan ahead if you need the money by a specific date. If you redeem on a Friday through TreasuryDirect, the money may not arrive until the following Wednesday or Thursday. If you need cash urgently, a bank redemption of paper bonds is faster.

Frequently Asked Questions

Can I cash a savings bond before it reaches final maturity?

Yes. Series EE bonds reach final maturity at 30 years, and Series I bonds at 30 years as well. You can redeem them anytime after you own them, but if you redeem before five years of ownership, you lose the last three months of interest. After five years, there is no penalty.

What if my bank says they cannot cash my savings bond?

Some smaller banks or credit unions do not redeem savings bonds. If this happens, try another bank in your area, or redeem the bond through TreasuryDirect if it is electronic. For paper bonds, you can also mail them directly to the Bureau of the Fiscal Service with a completed Form PD F 1522, though this takes several weeks.

Do I have to pay taxes on savings bond interest right away?

No. You report the interest on your tax return for the year you redeem the bond. You do not owe taxes until you file your return, which is typically the following April. If you expect a large tax bill, you can make estimated quarterly tax payments to avoid penalties.

What if I inherited savings bonds from a parent?

You will need a death certificate and proof that you are the beneficiary or executor. Bring these to the bank along with the bonds, or contact the Bureau of the Fiscal Service if they are electronic. The bank or Treasury will verify your authority and process the redemption, which takes longer than a standard redemption.

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

No. Savings bonds are registered to a specific owner, and only that owner can redeem them. If you are unable to redeem the bond yourself due to illness or incapacity, you can authorize someone through a power of attorney, but they will need to present that document to the bank along with your ID.