Where and how to cash your bond

You can cash a savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route for most people is their own bank — walk in with the bond and a valid ID, and they will process it on the spot. Some banks charge a small fee (usually $5 to $10) to cash a bond that was not issued through them, so call ahead if you want to avoid that.

If you prefer not to visit a bank, you can cash the bond through TreasuryDirect, the government's online system. You will need to set up an account, transfer the bond into it (which takes a few days), and then request the cash transfer to your bank account. This route takes longer but costs nothing.

Paper bonds issued before 2012 cannot be cashed online — they must go to a bank or the Treasury's processing center in Parkersburg, West Virginia. If you have an older paper bond and want to mail it, you will need to fill out Form PD 1522 and send it with the bond itself. The Treasury will mail you a check, which typically arrives within four to six weeks.

Key Takeaways

  • Your own bank will cash a savings bond for free if it was issued through them; other banks may charge $5 to $10.
  • Series EE and I bonds issued after 2012 can be cashed online through TreasuryDirect without a fee.
  • You must wait until a bond reaches its final maturity date or pay an early-redemption penalty, except for Series I bonds after five years.
  • The Treasury will send you a 1099-INT form at tax time if you cashed a bond that earned more than $10 in interest.

When you can cash a bond without penalty

The timing rules differ by bond type. Series EE bonds can be cashed anytime after you own them, but if you cash before 20 years have passed, you lose the last three months of interest. After 20 years, you can cash without penalty. Series EE bonds stop earning interest after 30 years, so holding them longer than that gains you nothing.

Series I bonds have a stricter rule: you must hold them at least one year before cashing. If you cash between one and five years, you lose the last three months of interest. After five years, you can cash without any penalty. Like Series EE, they stop earning after 30 years.

Both types will reach a final maturity date printed on the bond itself — usually 30 years from issue. After that date, the bond no longer earns interest and you should cash it. The Treasury will not automatically send you money; you have to request it.

What happens to the interest you earned

When you cash a bond, you receive the face value plus all the interest it has earned. For example, a $100 Series I bond purchased five years ago might be worth $130 if it earned $30 in interest. You get the full $130 in one payment.

That interest is taxable income in the year you cash the bond. If the bond earned more than $10 in interest, the bank or Treasury will send you a Form 1099-INT at tax time, and you will report that income on your federal tax return. You may also owe state income tax on the interest, depending on where you live.

If you held the bond for many years, all the accumulated interest becomes taxable in a single year, which can push you into a higher tax bracket. Some people cash bonds in different years to spread the tax hit, or cash them in years when their income is lower.

Cashing a bond in someone else's name

If the bond is registered in your name only, you can cash it yourself. If it is registered in two names (yours and a co-owner's), either of you can usually cash it without the other's permission — but check the bond itself, because some are issued as "and" (either can cash) versus "or" (both must agree).

If the bond owner has died, the person handling their estate will need to cash it as part of settling the estate. This requires a death certificate and proof of authority (like letters testamentary from probate court). The bank or Treasury can tell you exactly what documents they need.

If you are the guardian of a minor and the bond is in the child's name, you can cash it on their behalf, but the interest will be taxable income to the child, not to you. You may need to file a tax return for the child that year.

What to bring to the bank

Bring the physical bond itself and a valid government-issued ID (driver's license, passport, or state ID). If the bond is in two names, both people should go to the bank together, or one person should bring a notarized power of attorney from the other.

If you are cashing a bond for someone else's estate, bring the death certificate, your ID, and whatever document proves you have authority to act (letters testamentary, a court order, or a certified copy of the will). Call the bank first to ask what they specifically need — requirements vary.

For online cashing through TreasuryDirect, you will need your Social Security number and the bond's serial number. You will also need to verify your identity, which usually means answering security questions or uploading a photo ID.

If your bond is lost or damaged

A damaged bond can usually still be cashed if enough of it is legible — the bank or Treasury can read the serial number and issue date. Bring what you have and ask. If the bond is completely lost, you can file a claim with the Treasury using Form PD 1048. They will investigate and may replace it, but this takes time and requires proof you owned it (like old bank statements or purchase records).

If you lost a bond that was issued through a bank, contact that bank first — they may have a record of the purchase and can help you file a replacement claim.

Frequently Asked Questions

Can I cash a savings bond before it matures?

Yes, but with a penalty. Series EE bonds lose three months of interest if cashed before 20 years. Series I bonds must be held at least one year, and lose three months of interest if cashed before five years. After those periods, you can cash without penalty.

Do I have to report the interest when I cash a bond?

Yes. If the bond earned more than $10, you will receive a 1099-INT form and must report the interest as income on your tax return. The interest is taxable in the year you cash the bond, not the year you bought it.

What if I want to cash a bond but avoid paying taxes on the interest this year?

You cannot avoid the tax, but you can spread it across years by cashing bonds in different years. Some people also cash bonds in years when their income is lower to reduce the tax impact. Talk to a tax professional about your specific situation.

Can I cash a bond online if it's a paper bond from 2005?

No. Paper bonds issued before 2012 can only be cashed at a bank or by mailing them to the Treasury with Form PD 1522. You cannot transfer them to TreasuryDirect. Take it to your bank for the fastest result.

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

You can cash it as the parent or guardian, but the interest is taxable income to the child. You may need to file a tax return for them that year, even if they have no other income. The bank can tell you what documents they need to verify your authority.