You can cash savings bonds at most banks, through the Treasury Department, or by mail — the method depends on the bond type and where you hold it

Cashing in a savings bond is straightforward once you know which path to take. Series EE and Series I bonds held at a bank can usually be cashed at that bank's teller window. Bonds registered with the Treasury Department's TreasuryDirect system must be redeemed through your online account or by contacting the Bureau of the Fiscal Service directly. Paper bonds that you hold physically can be cashed at a bank or mailed to the Treasury.

The process takes different amounts of time depending on your method. A bank redemption typically completes in a few minutes. A TreasuryDirect redemption processes within one to three business days. Mailed paper bonds take one to two weeks after the Treasury receives them.

Key Takeaways

  • Bank-held bonds can be cashed at the issuing bank's teller window with your ID and the bond certificate or account information.
  • TreasuryDirect bonds are redeemed online through your account or by phone with the Bureau of the Fiscal Service at 844-284-2676.
  • Paper Series EE and Series I bonds can be cashed at most banks or mailed directly to the Treasury Department.
  • You must wait at least one year from purchase before redeeming any savings bond, and redeeming before five years means you lose the last three months of interest.
  • The Treasury will report interest earned on your 1099-INT form, which you owe taxes on in the year you cash the bond.

Cashing bonds held at a bank

If your savings bonds are registered with a bank — meaning the bank issued them or holds them in an account — go to that bank's branch with your government-issued ID and the bond certificate or your account number. The teller will verify the bond details, confirm you are the registered owner or an authorized representative, and process the redemption. You will receive the principal plus accrued interest in cash or as a deposit to your account.

Some banks require advance notice before redeeming large amounts, so call ahead if you are cashing more than a few bonds at once. A few banks have stopped selling new savings bonds but still redeem existing ones, so do not assume your bank cannot help you just because they do not advertise the service.

Redeeming bonds through TreasuryDirect

TreasuryDirect is the Treasury Department's online system for holding and managing savings bonds electronically. If your bonds are registered there, log into your TreasuryDirect account at treasurydirect.gov, select the bond you want to redeem, and follow the prompts to request the redemption. The funds will transfer to your linked bank account within one to three business days.

If you do not have online access or prefer to redeem by phone, contact the Bureau of the Fiscal Service at 844-284-2676. They will verify your identity, confirm the bond details, and process the redemption. You will need your Social Security number, the bond serial number or issue date, and the linked bank account information.

Cashing paper bonds in person or by mail

Physical paper Series EE and Series I bonds can be cashed at most banks without an account. Bring the bond certificate and your ID to any bank branch. The teller will examine the bond for authenticity, verify the serial number, and process the redemption. Not every bank handles paper bonds — credit unions and smaller regional banks sometimes decline — so call ahead if you are unsure.

If you prefer to mail the bond, send it with a signed letter stating your intent to redeem to the Treasury Department's address listed on the TreasuryDirect website. Include a copy of your ID and your bank account information for the deposit. The Treasury will verify the bond, process the redemption, and deposit the funds. This method takes one to two weeks after receipt.

Timing rules and interest penalties

You cannot redeem a savings bond until at least one year after you purchased it. If you redeem before five years have passed, you forfeit the last three months of interest. For example, if you bought a bond on January 15, 2023, and redeem it on December 15, 2024, you lose the interest that would have accrued from September 15 to December 15, 2024.

After five years, you can redeem without penalty and receive all accrued interest. The interest rate on Series I bonds changes every six months, so the longer you hold the bond, the more interest you earn — but only if you hold it past the five-year mark to avoid the penalty.

Tax reporting when you cash a bond

The interest you earn on a savings bond is subject to federal income tax. When you redeem the bond, the Treasury or the bank will report the interest earned on a Form 1099-INT sent to you and the IRS. You owe taxes on that interest in the year you cash the bond, even if you do not receive a 1099-INT until the following January.

You do not owe state or local income tax on savings bond interest, but you do owe federal tax. If you held the bond for many years, the accumulated interest can be substantial, so factor that into your tax planning. Some people redeem bonds gradually across multiple years to spread the tax burden, though the interest is taxed in the year of redemption regardless of when you spend the money.

What to do if you cannot find your bond or lost the certificate

If you own a bond through TreasuryDirect, you can redeem it online or by phone without the physical certificate — your account record is the proof of ownership. If you lost a paper bond certificate, contact the Treasury Department's customer service line at 844-284-2676. They can search their records by your name and Social Security number, verify ownership, and issue a replacement certificate or process a redemption directly.

Bring documentation of your identity and any proof of purchase you have — a receipt, a bank statement showing the purchase, or correspondence from the Treasury. The process takes longer than a standard redemption because the Treasury must verify that the bond was issued to you and that it has not already been cashed.

Frequently Asked Questions

Can I cash someone else's savings bond?

Only if you are named as a co-owner on the bond or if you have power of attorney or are the executor of an estate. The registered owner must be present with ID, or you must provide legal documentation of your authority. Banks and the Treasury verify ownership before processing any redemption.

What if I cash a bond before one year has passed?

You cannot. The Treasury will not process the redemption. You must wait at least one year from the purchase date. If you need the money sooner, you may be able to borrow against the bond value at some banks, though this is uncommon and not recommended.

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

You must redeem the entire bond. You cannot split a single bond into smaller amounts. If you own multiple bonds, you can redeem some and keep others.

How long does it take to get the money after I request a redemption?

Bank redemptions are immediate or same-day. TreasuryDirect redemptions take one to three business days to reach your linked bank account. Paper bonds mailed to the Treasury take one to two weeks after they arrive.

What happens if I cash a bond and then find out I owed taxes on it?

You report the interest on your tax return for the year you cashed the bond. If you did not have taxes withheld, you may owe when you file. The 1099-INT the Treasury sends will show the exact interest amount you owe taxes on.