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

You can cash a savings bond at a bank, credit union, or the U.S. Treasury, depending on which type you own and how old it is. Series EE and Series I bonds (the most common types) can be redeemed at most financial institutions without an appointment, though some banks limit the amount they'll cash in one day. If your bank won't cash it, the Treasury will always accept it by mail.

The key difference is timing: you can cash most bonds immediately, but Series EE and I bonds issued less than one year ago cannot be cashed at all. If you cash a Series EE or I bond before five years have passed, you'll lose the last three months of interest as a penalty.

Key Takeaways

  • Most savings bonds can be cashed at any bank or credit union, but call ahead to confirm they accept the type you own and the amount you're redeeming.
  • Series EE and I bonds must be held for at least one year before you can cash them, and cashing before five years costs you three months of accrued interest.
  • If a bank refuses to cash your bond, you can mail it directly to the Treasury Department with a form and get paid by check within a few weeks.
  • Bring the physical bond certificate and a valid ID; some institutions may ask for your Social Security number or a thumbprint for bonds over a certain amount.

Cashing at a bank or credit union

Walk into any bank or credit union branch with your bond certificate and a valid photo ID. The teller will verify the bond's serial number, check that it hasn't been reported lost or stolen, and confirm you're the registered owner or an authorized representative. Most institutions process the redemption on the spot and pay you by check or deposit the funds directly into your account.

Call your bank before you go. Some banks have daily limits on how much they'll cash in savings bonds—often $5,000 or $10,000—and a few no longer cash them at all. Credit unions are often more flexible than large banks. If your bank won't do it, ask if they can refer you to a branch that will, or move to the Treasury option.

Bring the original bond certificate, not a photocopy. If the bond is registered to two people, both owners should be present, or one owner should bring a notarized power of attorney from the other. If you're cashing a bond on behalf of a deceased owner, bring the death certificate and proof that you're an authorized representative of the estate.

Mailing your bond to the Treasury

If no bank near you will cash the bond, or if you prefer not to visit in person, you can redeem it by mail through the Bureau of the Fiscal Service, which is the Treasury office that handles savings bonds. Download Form PD 1239 from the Treasury website (treasurydirect.gov), fill it out completely, and mail it with your bond certificate to the address listed on the form.

Include a copy of your photo ID and sign the form in front of a notary public or a bank officer—the Treasury requires a witness signature. Mail everything by certified mail with return receipt requested so you have proof it arrived. The Treasury will send you a check within two to four weeks, though processing can take longer during high-volume periods.

This method is slower but reliable. The Treasury cannot lose your bond or deny the redemption if the paperwork is correct. Keep your receipt and tracking number until the check arrives.

What happens if your bond is lost, stolen, or damaged

If your bond certificate is lost or stolen, contact the Treasury immediately by calling 844-284-2676 or visiting treasurydirect.gov. The Treasury can place a stop on the bond so no one else can cash it, and they can issue a replacement certificate. You'll need to provide the bond's series, denomination, and serial number if you have it, plus proof of ownership.

If the certificate is damaged but readable, most banks will still cash it. If it's too damaged to read or verify, the Treasury can replace it if you provide the original purchase information. This process takes longer than a normal redemption, so plan for several weeks.

Understanding the one-year and five-year rules

Series EE and Series I bonds cannot be cashed during the first year you own them. If you try to redeem one before the one-year anniversary of purchase, the bank or Treasury will refuse. This is a hard rule with no exceptions.

If you cash a Series EE or I bond between one and five years after purchase, you lose the last three months of interest. For example, if you've held the bond for two years and four months, you'll receive interest only through the one-year-and-nine-month mark. After five years, you can cash the bond without this penalty.

Series HH bonds and older bond types have different rules. Series HH bonds, for instance, mature after 20 years and stop earning interest, so holding them longer doesn't increase their value. Check the bond's issue date and series letter to understand which rule applies to yours.

Tax reporting when you redeem

When you cash a savings bond, you owe federal income tax on the interest you earned, but not on the original amount you paid. The bank or Treasury does not withhold taxes automatically—you report the interest on your tax return for the year you cash the bond.

If you cashed the bond at a bank, ask for a 1099-INT form if the interest exceeds $10. If you redeemed through the Treasury, they will mail you a 1099-INT. Keep this form with your tax records. State income tax rules vary, so check your state's requirements.

You can defer federal tax on Series EE and I bonds if you use the proceeds to pay for may have access to education expenses in the same year you redeem the bond. This requires filing Form 8815 with your tax return. Consult a tax professional if you think you may have access to.

What to do if the bank won't accept your bond

Some banks have stopped cashing savings bonds because the volume is low and the liability is high. If your bank refuses, ask the manager whether another branch in the network will do it. Large national banks sometimes have a central redemption desk that handles bonds for all branches.

If no bank will take it, the Treasury will always redeem it by mail. This is your may provide fallback. You can also contact your state's unclaimed property office if the bond has been lost for many years and you're unsure of its status—they may have a record of it.

Frequently Asked Questions

Can I cash a savings bond if I'm not the registered owner?

Only if you have legal authority. If the bond is registered to a deceased person, you need a death certificate and proof you're the executor or beneficiary. If it's registered to someone else and you have power of attorney, bring the notarized document. Otherwise, the owner must be present or sign a notarized authorization.

What if I don't know the serial number or issue date?

The bank or Treasury can look it up if you provide your name, Social Security number, and the bond's series and denomination. You may need to provide additional proof of ownership. Call the Treasury at 844-284-2676 if you're unsure.

Do I have to cash the entire bond at once?

Yes. Savings bonds cannot be partially redeemed. You must cash the whole certificate. If you own multiple bonds, you can cash them one at a time or all together.

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

At a bank, usually the same day or within one business day if you deposit it into your account. By mail through the Treasury, expect two to four weeks from the time they receive your paperwork.

Will cashing a savings bond affect my benefits or taxes?

Cashing a bond counts as income for that tax year, which could affect your tax bracket or certain benefit programs. If you receive means-tested benefits like SNAP or Medicaid, the interest income may be counted. Consult a tax professional or your benefits administrator before cashing a large bond.