Where to redeem your savings bonds

You can redeem US savings bonds at most banks and credit unions, or directly through the US Department of the Treasury if your financial institution won't handle it. The easiest route is usually your own bank — call ahead and ask if they redeem savings bonds, because not all branches do, and some have limits on how many they'll cash in one day.

If your bank declines, the Treasury's TreasuryDirect website lets you redeem Series I and EE bonds online if you hold them in a TreasuryDirect account. For paper bonds or bonds held elsewhere, you'll need to mail them to a Federal Reserve Bank along with a form. The Federal Reserve Banks process paper bond redemptions; you can find the address for your region on the Treasury website.

Some credit unions and savings banks have restrictions — they may redeem only bonds issued by the Treasury in the last five years, or only bonds worth under a certain amount. Ask about their specific rules before you visit.

Key Takeaways

  • Series I and EE bonds held in TreasuryDirect can be redeemed online through your account, usually within one business day.
  • Paper bonds can be cashed at most banks and credit unions, but you should call first because not all branches handle them and some have daily limits.
  • If your bank won't redeem your bonds, you can mail them to the Federal Reserve Bank in your region with a completed form.
  • You must wait at least one year after purchase before redeeming any savings bond, and redeeming before five years means you lose the last three months of interest.
  • Bring a photo ID and the bond itself (or your TreasuryDirect login) — the financial institution or Federal Reserve will verify the bond's value and your ownership.

The one-year and five-year rules

You cannot redeem a savings bond until at least one year after you bought it. This applies to every type of savings bond — Series EE, Series I, and older series. If you try to redeem before that year is up, the bank or Treasury will refuse.

If you redeem between one and five years after purchase, you lose the last three months of interest. So if you bought a bond on March 15, 2023, and redeem it on March 15, 2024, you'll get the full year's interest. But if you redeem on March 15, 2025 (two years later), you'll receive interest only through December 15, 2024 — the last three months are forfeited. After five years, you keep all accrued interest no matter when you redeem.

The redemption date that matters is the date the bank or Treasury processes your request, not the date you submit it. If you mail a paper bond to the Federal Reserve, the date they receive it is the redemption date.

What you need to bring or provide

For paper bonds at a bank or credit union, bring the physical bond and a photo ID. The teller will verify that the bond is genuine, check that you meet the age and ownership requirements, and confirm the current value. You don't need anything else — no original purchase receipt or proof of purchase.

If you're redeeming through TreasuryDirect online, you just need to log into your account and request the redemption. The money goes to the bank account linked to your TreasuryDirect account, usually within one business day.

If you're mailing paper bonds to a Federal Reserve Bank, you'll need to complete Form PD F 1522 (Request for Payment of Savings Bonds). Include the form, the bonds themselves, and a copy of your photo ID. Mail everything to the Federal Reserve Bank that serves your region — the address is on the Treasury website. Processing takes several weeks by mail.

How the redemption payment works

When you redeem at a bank, you receive cash or a deposit to your account that same day or within one business day. The teller calculates the bond's current value (principal plus all accrued interest) and gives you that amount. There's no fee for redeeming at your own bank.

Some banks charge a small fee if you're not a customer, or if you're redeeming a large number of bonds. Ask about fees when you call to confirm they redeem bonds.

If you redeem through TreasuryDirect, the money is deposited directly to your linked bank account. If you mail bonds to the Federal Reserve, they send a check to the address you provide on the form. The check is issued in the name of the bond owner; if the bond is registered to two people, both names appear on the check and both may need to endorse it.

Redeeming bonds registered to someone else

If a bond is registered in your name only, you can redeem it by presenting it and your ID. If a bond is registered to two people (for example, "John Smith or Jane Smith"), either person can redeem it alone — the "or" means either owner can act independently.

If a bond is registered as "John Smith and Jane Smith" (with "and" instead of "or"), both owners must be present to redeem it in person, or both must sign the redemption form if you're mailing it. Some banks will accept a notarized power of attorney from one owner authorizing the other to redeem alone, but this varies by institution.

If you're redeeming a bond that was registered to someone who has died, the process is more complex. You'll need to provide a death certificate and proof that you're authorized to act on the deceased's behalf — usually a will, court order, or power of attorney. Contact the Federal Reserve Bank in your region for specific instructions, because requirements vary.

What happens if your bond is lost or destroyed

If you have a paper bond that's lost, stolen, or damaged beyond recognition, you can request a replacement or redemption through the Treasury. You'll need to file a claim with the Federal Reserve Bank, providing as much information as you can about the bond — the series, denomination, issue date, and serial number if you have it.

The Federal Reserve will search their records to verify the bond existed and that it hasn't already been redeemed. If they confirm it, they can either issue a replacement bond or redeem it and send you a check. This process takes several months. If you have the bond number or a photo of the bond, include that with your claim.

Tax reporting when you redeem

When you redeem a savings bond, the financial institution does not automatically report the interest to the IRS. You are responsible for reporting the interest income on your tax return. The interest is taxable at the federal level; whether it's taxable at the state level depends on your state.

Keep a record of the redemption amount and the original purchase price so you can calculate the interest earned. If you redeemed bonds in the past and never reported the interest, you can still file amended returns. Many people redeem bonds without realizing the interest is taxable, so this is common.

If you're redeeming a Series EE or I bond that was used for education expenses, you may be able to exclude some or all of the interest from your taxable income under the Education Savings Bond Program. This requires meeting specific conditions and filing Form 8815 with your tax return. A tax professional can help you determine if you may have access to.

Frequently Asked Questions

Can I redeem a savings bond before one year?

No. Every savings bond has a one-year holding period from the date of purchase. You cannot redeem it before that date, even if you need the money urgently. After one year, you can redeem it anytime, but you'll lose the last three months of interest if you redeem before five years have passed.

What if I lost the bond number or serial number?

You don't need the serial number to redeem a bond at a bank — the teller can look it up using the bond itself. If the bond is damaged and the number is illegible, bring it anyway and explain the damage. If the bond is completely lost, contact the Federal Reserve Bank in your region to file a claim and request a replacement or redemption.

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

At a bank or credit union, you get the money the same day or within one business day. Through TreasuryDirect online, the deposit arrives within one business day. If you mail bonds to the Federal Reserve, allow four to six weeks for processing and delivery of the check.

Do I pay taxes when I redeem a savings bond?

You don't pay taxes at the time of redemption. The interest you earned is taxable income that you report on your federal tax return for the year you redeemed the bond. You may also owe state income tax depending on your state. Keep your redemption records so you can calculate the interest correctly.

Can I redeem a bond that's in someone else's name?

Only if you're listed as an owner on the bond. If the bond is registered to two people with "or" between the names, either person can redeem it alone. If it says "and," both owners must be present or both must sign the redemption form. If the owner has died, you'll need a death certificate and proof of authority to act on their behalf.