Where and how to cash your savings bonds

You can cash a US savings bond at most banks and credit unions, or directly through the US Treasury if your financial institution won't do it. Walk in with the bond itself, your ID, and a completed Form 8888 (if you want the money split between accounts) or just your ID if you want a single payment. The bank or credit union will verify the bond's serial number, check that you're the registered owner or an authorized representative, and process the redemption on the spot — you'll usually get your money the same day or within one business day.

If your bank declines to cash the bond, you can redeem it directly through TreasuryDirect, the Treasury's online system. Log in with your account, navigate to the bond you want to cash, and request the redemption. The money goes into your linked bank account within a few business days. You can also mail the bond to the Federal Reserve Bank in your region with a completed Form PD 1048, though this takes longer and requires you to include a copy of your ID.

Key Takeaways

  • Most banks and credit unions will cash savings bonds on the spot if you bring the bond, your ID, and proof you own it.
  • You must wait until a bond reaches its final maturity date or you will lose all accrued interest — cashing early means you forfeit years of earnings.
  • Series EE and I bonds have a one-month penalty if cashed before five years of ownership, which reduces your principal by one month of interest.
  • TreasuryDirect lets you redeem bonds online without visiting a bank, and the money arrives in your account within a few business days.
  • If you inherit a bond or are cashing one for a minor, you will need additional paperwork proving your authority to redeem it.

Understanding the five-year holding requirement and early redemption penalty

Series EE bonds and Series I bonds cannot be cashed before you have owned them for five years without a penalty. If you try to redeem one before that five-year mark, the Treasury deducts one month of interest from your payout — meaning you lose money you already earned. For example, if a Series I bond has accrued $50 in interest and you cash it at year three, you receive the original purchase price plus $50 minus one month's worth of that interest.

Series HH bonds and older bond series have different rules. Series HH bonds mature after 20 years and cannot be cashed before maturity at all — you must either hold them until they mature or exchange them for other Treasury securities. Check the bond's issue date and series letter to know which penalty applies to yours. The Treasury's website has a bond search tool where you can look up your specific bond and see its maturity date and current value.

What happens if you cash a bond before maturity

If you cash a bond before its final maturity date, you receive the current redemption value — which is the original purchase price plus all interest earned up to that point, minus any applicable penalty. You do not receive interest that would have accrued after the redemption date. For Series I bonds, this means you lose the interest that would have been paid in the next six-month period.

The redemption value is not the same as the face value printed on the bond. A $50 Series I bond purchased at a discount might have a current value of $62 if it has earned interest, but if you cash it before five years you get $62 minus the one-month penalty. Always ask the bank or check TreasuryDirect for the exact current value before you decide to redeem.

Cashing bonds registered to someone else or inherited bonds

If a bond is registered in someone else's name, you cannot cash it unless you are listed as a co-owner or authorized representative. If you inherited a bond after the original owner died, you will need to provide a death certificate and proof that you are the executor or beneficiary of the estate. Some banks will not handle inherited bonds and will direct you to redeem through TreasuryDirect or the Federal Reserve Bank instead.

If a bond is registered to a minor, a parent or legal guardian must redeem it on the child's behalf. Bring the child's birth certificate or Social Security card, your ID, and a statement showing your relationship to the minor. The redemption value goes into an account in the minor's name, and you as the guardian control how it is used until the child reaches the age of majority in your state.

Tax reporting when you redeem a savings bond

The interest you earn on a savings bond is subject to federal income tax, but not state or local income tax. When you cash the bond, the bank or Treasury does not automatically withhold taxes — you are responsible for reporting the interest on your tax return. The amount of interest is the redemption value minus the original purchase price.

If you have owned the bond for multiple years, all the interest accrues and becomes taxable in the year you cash it, unless you chose to report the interest annually when you owned the bond. Most people do not report annually, so they owe taxes on the full amount in the redemption year. Keep your bond purchase receipt and the redemption statement so you can calculate the interest correctly when you file.

Using TreasuryDirect to redeem bonds online

TreasuryDirect is the easiest way to redeem a bond if you already have an account and the bond is registered there. Log in, find the bond in your portfolio, and click the option to redeem or sell. You will see the current value and any penalties that apply. Confirm the redemption, and the money goes into the bank account you linked to your TreasuryDirect account within two to three business days.

If you do not have a TreasuryDirect account, you can open one at treasurydirect.gov. You will need a Social Security number, a valid email address, and a US bank account. Once your account is set up and verified, you can add bonds to it by providing their serial numbers, and then redeem them online. This route takes longer upfront but gives you permanent access to manage your bonds without visiting a bank.

What to bring when you cash a bond in person

Bring the physical bond certificate itself — the bank cannot process a redemption without it. Bring a government-issued photo ID such as a driver's license or passport. If the bond is in your name and you are the only owner, that is all you need. If you are redeeming on behalf of someone else, bring proof of your authority: a power of attorney document, a guardianship order, or an executor's certificate if the original owner has died.

Some banks may ask for a completed Form 8888 if you want the redemption money split between multiple accounts or if you want part of it in a check and part in a direct deposit. Call your bank ahead of time to ask whether they require this form or any other documents. A few banks have stopped cashing savings bonds altogether, so it is worth confirming that your bank still offers this service before you make a trip.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most large banks and credit unions will cash savings bonds, but some smaller institutions or online-only banks do not. Call your bank first to confirm they offer this service. If they decline, you can redeem through TreasuryDirect or mail the bond to the Federal Reserve Bank in your region.

What if I lost the physical bond certificate?

If you purchased the bond through TreasuryDirect, you do not have a physical certificate — you can redeem it online through your account. If you have a paper bond and lost it, contact the Treasury's Bureau of the Fiscal Service to report it lost or stolen and request a replacement. This process takes several weeks.

Do I have to pay taxes when I cash the bond?

The bank does not withhold taxes when you redeem. You owe federal income tax on the interest earned, which you report on your tax return in the year you cash the bond. State and local taxes do not apply to savings bond interest.

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

If you redeem in person at a bank, you usually get the money the same day or within one business day. If you redeem through TreasuryDirect, the money arrives in your linked bank account within two to three business days. Mailing a bond to the Federal Reserve takes one to two weeks.

Can I redeem only part of a savings bond?

No. You must redeem the entire bond at once. You cannot cash half of a bond and keep the other half earning interest. If you want to keep some money invested, you would need to purchase a new bond separately.