You redeem a savings bond by submitting it to a bank or the U.S. Treasury, along with proof of ownership

The process depends on whether you own a paper bond or a digital one held through TreasuryDirect. Paper bonds go to your bank or a Federal Reserve Bank; digital bonds are redeemed entirely online through your TreasuryDirect account. You'll need to prove you own the bond — usually a photo ID — and you must wait until the bond has reached its final maturity date or you've held it long enough to cash it without penalty.

Most savings bonds can be cashed after one year of ownership. If you cash before five years have passed, you lose the last three months of interest as a penalty. After five years, there is no penalty. Once a bond reaches its final maturity — typically 30 years from issue — it stops earning interest and you should redeem it.

Key Takeaways

  • Paper bonds are redeemed at a bank or Federal Reserve Bank; digital bonds are redeemed through your TreasuryDirect account online.
  • You can cash a bond after holding it for one year, but redeeming before five years costs you the last three months of interest.
  • You will need a photo ID and proof of ownership, such as the bond certificate itself or your TreasuryDirect login.
  • The redemption process takes a few business days for paper bonds and is immediate for digital bonds.
  • Once a bond reaches final maturity (usually 30 years), it stops earning interest and should be cashed in.

Redeeming paper savings bonds at a bank

Take your paper bond certificate and a photo ID to any bank where you have an account. Not all banks redeem savings bonds — call ahead to confirm. The bank will verify the bond's serial number, check that you are the registered owner, and process the redemption. You'll receive the cash value, which is the purchase price plus all accrued interest.

The bank may ask for your Social Security number and will likely report the transaction to the IRS. If you're redeeming a bond registered to someone else (such as a deceased parent's estate), bring documentation proving you have the legal right to do so — a will, power of attorney, or court order. Processing usually takes three to five business days.

Redeeming paper bonds through a Federal Reserve Bank

If your bank won't redeem the bond, or if you don't have a bank account, you can mail the bond directly to a Federal Reserve Bank. Contact the Federal Reserve's Bureau of the Fiscal Service at treasurydirect.gov or call 844-284-2676 to find the address for your region and get the required form.

You'll mail the bond certificate, a completed form, and a copy of your photo ID. Include a letter stating the amount you expect to receive and your preferred payment method — direct deposit or a check mailed to your address. The Federal Reserve will verify ownership and mail you a check or deposit the funds directly to your bank account within two to three weeks.

Redeeming digital bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the bond you want to redeem. The system will show the current value, including all accrued interest. Click "Redeem" and confirm the transaction.

The funds are deposited directly into the bank account linked to your TreasuryDirect account, usually within one business day. You do not need to mail anything or visit a bank. If you've forgotten your TreasuryDirect password, use the "Forgot Password" link on the login page to reset it before you begin.

Understanding the early redemption penalty

If you redeem a savings bond before you've held it for five years, the Treasury deducts the last three months of interest from your payout. For example, if a bond has earned $100 in interest but you redeem it after three years, you receive only $75 — the penalty is $25.

This penalty applies to Series EE, Series I, and Series E bonds. After five years, you can redeem without losing any interest. If you're uncertain whether the penalty applies to your specific bond, check the bond's issue date or ask your bank. The five-year clock starts from the bond's issue date, not from when you received it as a gift.

What to do if you've lost the bond certificate

If you own a paper bond but have lost the physical certificate, contact the Federal Reserve's Bureau of the Fiscal Service at 844-284-2676. You'll need to provide the bond's serial number (if you have it), the issue date, and the denomination. The Bureau can search their records to confirm you are the registered owner.

Once confirmed, the Bureau will issue a replacement certificate or process a redemption directly. This process takes longer than a standard redemption — typically four to six weeks — because the Bureau must verify ownership without the physical certificate. If you don't have the serial number, bring any documentation you have, such as old bank statements or gift letters that mention the bond.

Redeeming bonds held in an estate or trust

If you are redeeming a bond that belonged to someone who has died, you'll need to prove your authority to act on their behalf. Bring the death certificate, a copy of the will or trust document naming you as executor or beneficiary, and your photo ID to the bank. Some banks require additional paperwork, such as letters testamentary from the probate court.

If the bond is large or the estate is complex, the Federal Reserve may require a court order before processing the redemption. Contact the Bureau of the Fiscal Service to ask what documents they need before you submit anything. The process is slower for estate bonds — allow six to eight weeks.

Tax reporting when you redeem

The interest you earn on a savings bond is subject to federal income tax. When you redeem, the bank or Federal Reserve will report the transaction to the IRS using Form 1099-INT if the interest exceeds $10. You must report this interest on your federal tax return for the year you redeem the bond.

You can choose to report the interest each year as it accrues, rather than all at once when you redeem — this spreads the tax burden over time. To do this, you must file Form 8818 with your tax return. Most people wait and report all the interest in the year they redeem, which is simpler but results in a larger tax bill that year. Consult a tax professional if you're redeeming a large bond or have questions about how to report it.

Frequently Asked Questions

Can I redeem a savings bond before one year?

No. All savings bonds must be held for at least one year before you can redeem them. If you try to redeem earlier, the bank or Treasury will refuse the request. Plan ahead if you know you'll need the money.

What if I don't know the exact value of my bond?

The bank or Federal Reserve will calculate the exact value when you redeem, including all accrued interest. You don't need to know it beforehand. If you want to check the value before redeeming a digital bond, log into TreasuryDirect and the system will display it.

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

You must redeem the entire bond. You cannot cash in a portion and keep the rest earning interest. If you want to keep some money invested, you'll need to purchase a new bond after redeeming.

What happens if I redeem a bond after it reaches final maturity?

The bond stops earning interest once it reaches final maturity, usually 30 years after issue. You should redeem it at that point because holding it longer gains you nothing. The redemption process is the same — you'll receive the purchase price plus all interest earned up to the maturity date.

Can someone else redeem my bond if I give them permission?

No. Only the registered owner can redeem a savings bond. If you want someone else to handle it, you must set up a power of attorney through your state's legal system and bring that document to the bank. A simple written note is not enough.