Where to cash your savings bonds

You can cash savings bonds at most banks and credit unions, even if you don't have an account there. Walk in with the bonds and your ID, and the teller will verify the serial numbers, confirm you're the registered owner or authorized representative, and process the redemption on the spot. Some banks charge a small fee (typically $5 to $10) to cash bonds issued by someone else, but cashing your own bonds is usually free.

If you prefer not to visit a branch, you can redeem Series EE and Series I bonds online through TreasuryDirect, the U.S. Department of the Treasury's website. You'll need to set up a TreasuryDirect account, link your savings bonds to it, and request the redemption. The money deposits directly to your bank account within a few business days. Paper bonds can't be redeemed online—only bonds you purchased electronically through TreasuryDirect.

The Federal Reserve also redeems savings bonds by mail if you send them to a Federal Reserve Bank with a signed letter requesting redemption. This route takes longer (typically two to three weeks) and requires you to mail the actual bonds, so it's less common than the other two options.

Key Takeaways

  • Most banks and credit unions will cash your savings bonds in person without requiring an account, and the process takes minutes.
  • Series EE and Series I bonds purchased through TreasuryDirect can be redeemed online without visiting a bank.
  • You must be the registered owner or an authorized representative to redeem a bond, and you'll need to show ID.
  • Savings bonds can only be cashed after they reach their issue date plus 30 days, and you'll owe federal income tax on the interest earned.
  • Cashing a bond before it reaches final maturity means you forfeit the last three months of interest, so timing matters if you're close to a payment date.

The 30-day waiting period and early redemption penalties

You cannot cash a savings bond until at least 30 days have passed since the issue date. If you try to redeem it before that window closes, the bank will refuse the transaction. This rule applies to all savings bonds regardless of type or where you purchased them.

If you cash a bond before it reaches final maturity (which varies by bond type—typically 20 to 30 years), you lose the last three months of interest. So if a bond is scheduled to pay interest on the 15th of each month and you cash it on the 20th, you forfeit the interest that would have been paid on the 15th. This penalty is automatic and applies whether you're cashing the bond early by choice or because you need the money.

Series I bonds have an additional rule: if you redeem them within five years of purchase, you lose the last three months of interest. After five years, you can redeem without that penalty. Series EE bonds don't have a five-year lock-in, but the three-month interest forfeiture still applies.

What you need to bring to the bank

Bring the physical savings bond itself and a government-issued photo ID. The teller will check that the name on the bond matches the ID and that you're the registered owner or an authorized representative listed on the bond. If someone else is listed as a co-owner or beneficiary, they may need to be present or sign a form authorizing the redemption, depending on the bank's policy.

If you've lost the bond, you can request a replacement from the Treasury, but the process takes several weeks. In the meantime, you cannot redeem it. If you're redeeming a bond on behalf of someone else—as a parent cashing a bond issued to a minor child, for example—bring documentation showing your authority, such as a birth certificate or guardianship papers.

Tax reporting when you cash a bond

The interest you earned on a savings bond is subject to federal income tax. When you redeem the bond, the bank does not withhold taxes automatically—you owe the tax when you file your return. The Treasury will send you a Form 1099-INT in January of the year after you cash the bond, showing the interest amount. You report this on your tax return as ordinary income.

You can choose to report the interest in the year you cash the bond or in the year the bond reaches final maturity, whichever comes first. Most people report it when they redeem because that's when they receive the money. State income tax treatment varies by state—some states don't tax savings bond interest at all, while others do. Check your state's rules or ask a tax professional.

If you're cashing a bond that's been held for many years, the interest amount can be substantial. For example, a Series EE bond purchased 20 years ago may have doubled in value, meaning half the redemption amount is taxable interest. Factor this into your decision about when to cash the bond, especially if cashing it would push you into a higher tax bracket.

Redeeming bonds registered to a deceased person

If the bond owner has died, the redemption process depends on who is listed on the bond. If the bond names a beneficiary, that person can redeem it by presenting the death certificate and their ID. If there is no beneficiary, the bond becomes part of the estate, and the executor or administrator must handle the redemption as part of settling the estate.

Some banks will not redeem a bond without a death certificate and proof of the redeemer's authority (such as an executor's letter from the probate court). The process can take longer than a standard redemption because the bank needs to verify the legal right to the money. If you're in this situation, contact the bank ahead of time to ask what documents they need.

Online redemption through TreasuryDirect

If your bonds are in a TreasuryDirect account, you can redeem them without leaving home. Log in to your account, select the bond you want to redeem, and request the redemption. The system will confirm the current value (including accrued interest) and ask you to authorize the transaction. The money will be deposited into the bank account linked to your TreasuryDirect account within one to three business days.

TreasuryDirect only works for bonds you purchased electronically through the Treasury's website. If you own paper bonds, you must redeem them in person at a bank or through the Federal Reserve by mail. You cannot transfer paper bonds into a TreasuryDirect account, so if you have old paper bonds, the bank or Federal Reserve route is your only option.

What happens if you can't find your bond

If you've lost a savings bond, you can request a replacement from the Treasury. Contact the Bureau of the Fiscal Service (the division of the Treasury that manages savings bonds) and provide the bond's serial number, issue date, and denomination. They will verify that the bond was issued in your name and send you a replacement. This process typically takes four to six weeks.

Until you receive the replacement, you cannot redeem the bond. If you need the money urgently, this delay can be a problem. Keep your bonds in a safe place—a safe deposit box, home safe, or fireproof file—and consider keeping a list of serial numbers and issue dates in case you need to file a replacement request.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but policies vary. Call ahead to confirm, especially if you don't have an account at that bank. Some smaller institutions may decline or charge a higher fee. The bank where you have a checking or savings account is usually the easiest option.

What if the bond is in my child's name?

If you are the parent or legal guardian and the bond is registered to your child, you can redeem it by bringing the bond, your ID, and your child's birth certificate or other proof of guardianship. Some banks may require the child to be present if they are old enough to sign documents. Ask the bank about their specific requirements before you go in.

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

Savings bonds are redeemed as a whole—you cannot cash half a bond and keep the other half. When you redeem, you receive the full current value. If you want to keep some of the money invested, you would need to purchase a new bond with part of the proceeds.

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

In-person redemptions at a bank are typically processed immediately, and you can walk out with a check or deposit the funds to your account on the spot. Online redemptions through TreasuryDirect take one to three business days. Federal Reserve redemptions by mail take two to three weeks.

What if I cash a bond and then realize I made a mistake?

Once a bond is redeemed, the transaction is final. You cannot undo it or return the money to buy the bond back. If you cashed a bond by mistake, your only option is to use the proceeds to purchase a new bond through TreasuryDirect or at a bank. You will not recover any interest you lost by redeeming early.