Where and how to redeem your savings bonds

You can cash in savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury if you prefer not to use a financial institution. The method depends on whether your bonds are paper or digital, and whether you own them outright or jointly with someone else.

Paper bonds go to your bank's customer service desk or teller window. Bring the bonds themselves, a valid photo ID, and your Social Security number. Some banks may ask for a thumbprint or signature may provide depending on the bond's age and value. Digital bonds (those held in TreasuryDirect, the Treasury's online system) are redeemed entirely online through your account — no visit needed.

If you do not have a bank account or prefer to work directly with the Treasury, you can redeem bonds by mail. Send the paper bonds to the Bureau of the Fiscal Service at the address listed on the Treasury website, along with a completed Form PD 1522 (Request for Payment of Savings Bonds). Processing by mail typically takes four to six weeks.

Key Takeaways

  • Paper savings bonds can be cashed at any bank or credit union that offers this service, though not all branches do — call ahead to confirm.
  • Digital bonds held in TreasuryDirect are redeemed online through your account and appear in your linked bank account within one to three business days.
  • You will need a photo ID and your Social Security number at a bank, or your TreasuryDirect login credentials online.
  • Bonds redeemed before five years have passed lose their last three months of interest, so check your purchase date before cashing in.
  • If a bond is registered to a deceased person, the process requires additional paperwork and proof of your authority to redeem it.

What to bring to your bank

Bring the physical bond certificates themselves — the bank cannot process a redemption without them. You will also need a valid government-issued photo ID (driver's license, passport, or state ID) and your Social Security number. The teller will verify that the information on the bond matches your ID.

For bonds registered jointly (two names on the bond), both owners should be present if possible. If only one owner is present, the bank may require a signature may provide or notarization from the absent owner, depending on the bond's value and the bank's policy. Call your bank ahead of time to ask what they require for joint bonds.

Older bonds or those with high face values sometimes trigger additional verification steps. Some banks ask for a thumbprint or require you to sign the bond in front of the teller. These are standard anti-fraud measures and do not delay the process significantly.

Redeeming bonds online through TreasuryDirect

If your bonds are held in TreasuryDirect (the Treasury's digital platform), log into your account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the bonds you want to redeem. You will see the current value and the interest earned to date.

Confirm the redemption, and the Treasury will deposit the funds into the bank account you have linked to your TreasuryDirect account. This transfer typically takes one to three business days. You will receive an email confirmation of the transaction, and the redeemed bonds will no longer appear in your account.

If you have not yet linked a bank account to TreasuryDirect, you will need to do that before you can redeem. The process takes a few minutes and requires your routing number and account number, which you can find on a blank check or by logging into your bank's website.

The interest penalty for early redemption

Savings bonds held for less than five years lose their last three months of interest when redeemed. This means if you bought a bond on March 15, 2023, and redeem it on March 14, 2028 (just before the five-year mark), you will receive interest only through December 14, 2027. The three-month penalty applies regardless of when you actually redeem the bond.

Series EE and Series I bonds both carry this same penalty. If you are close to the five-year mark, waiting a few months can mean keeping that final interest payment. The bank or TreasuryDirect will show you the exact redemption value before you confirm, so you can see whether the penalty applies.

Bonds held for five years or longer have no penalty — you receive all accrued interest up to the redemption date. After 30 years, Series EE bonds stop earning interest entirely, so there is no benefit to holding them longer.

Redeeming bonds registered to a deceased owner

If the bond is registered only to a deceased person and you are their heir or executor, you will need to provide proof of your authority to redeem it. This typically means a death certificate, a copy of the will or trust naming you as executor or beneficiary, and your own photo ID.

Take these documents to your bank along with the bond itself. Some banks will handle this in-house; others may require you to work through the probate court first. Call ahead to ask what your specific bank requires — policies vary widely.

If the bond was registered jointly (the deceased person and another living person), the surviving owner can usually redeem it without probate paperwork, though the bank may ask for a death certificate to confirm the co-owner's status.

What happens after you redeem

If you redeemed at a bank, you will receive the funds as a check, direct deposit to your account, or cash, depending on the bank's policy and the amount. Ask the teller which options are available. Large redemptions may be subject to the bank's internal reporting requirements, but this does not affect your ability to cash the bond.

If you redeemed through TreasuryDirect, the funds go directly to your linked bank account. Check your bank account one to three business days after the redemption to confirm the deposit arrived.

The Treasury does not send you a separate confirmation document, but you can download a transaction history from your TreasuryDirect account at any time. Keep this record for your tax records, since the interest earned on the bonds is taxable income in the year you redeem them.

Tax reporting for redeemed bonds

The interest you earned on the bonds is subject to federal income tax. You can choose to report it in the year you redeem the bond, or you can report it annually as the interest accrues (if you have been doing that all along). Most people report it in the redemption year because it is simpler.

The Treasury will send you a Form 1099-INT if the interest earned exceeds $10 in a calendar year. You will receive this form by January 31 of the following year. Even if you do not receive a 1099-INT, you are still required to report the interest on your tax return.

State and local taxes on bond interest vary by location. Some states exempt U.S. savings bond interest from state income tax; others do not. Check your state's tax rules or consult a tax professional if you are unsure.

Frequently Asked Questions

Can I redeem a savings bond before five years without losing all the interest?

No. If you redeem before five years have passed, you lose the last three months of interest. After five years, you keep all accrued interest with no penalty. The five-year clock starts from the bond's issue date, not from when you purchased it.

What if I lost my paper savings bond?

Contact the Bureau of the Fiscal Service at treasurydirect.gov or call 844-284-2676. You will need to file a claim with proof of purchase (like a receipt or bank statement showing the purchase). The process can take several months, and you may be required to post a bond or provide an indemnity agreement before the Treasury replaces the lost bond.

Do I have to redeem all my bonds at once?

No. You can redeem some bonds and keep others. At a bank, tell the teller which specific bonds you want to cash in. In TreasuryDirect, select only the bonds you want to redeem — the rest will remain in your account.

Can someone else redeem my bonds for me?

Not without your permission and signature. If you want someone else to redeem your bonds, you can give them power of attorney, or you can sign the back of the paper bond and have it notarized. For TreasuryDirect bonds, only you can log in and redeem them unless you have set up a beneficiary or authorized representative in your account.

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

At a bank, you receive the funds immediately (as a check or cash) or within one business day (if deposited to your account). Through TreasuryDirect, the deposit takes one to three business days. By mail, expect four to six weeks.