You redeem savings bonds through your bank or the U.S. Treasury, depending on the bond type and how long you've held it

Redeeming a savings bond means converting it to cash. The process is straightforward for most bonds, but the exact steps depend on whether you own a paper bond or a digital one, and which Treasury program issued it. Paper bonds issued before 2012 go through your bank; digital bonds bought through TreasuryDirect go back through that same online account. You'll need the bond itself (or proof you own it), a valid ID, and in some cases a signature may provide from your bank.

The timing matters. Series EE and Series I bonds cannot be redeemed in the first year you own them. If you cash them in before five years have passed, you lose the last three months of interest. After five years, you can redeem without penalty. Series HH bonds (no longer sold) have different rules tied to their maturity date.

Key Takeaways

  • Paper bonds are redeemed at your bank; digital bonds are redeemed through your TreasuryDirect account online.
  • Series EE and I bonds cannot be cashed before one year of ownership, and redeeming before five years costs you three months of accrued interest.
  • You will need the bond certificate (or proof of ownership), a government-issued ID, and sometimes a signature may provide from your financial institution.
  • The Treasury processes digital redemptions within a few business days; paper bonds through banks typically take one to two weeks.

Redeeming paper bonds at your bank

If you own a physical paper bond, take it to any bank where you have an account. Bring your government-issued ID and the bond certificate itself. The bank will verify the bond's serial number, confirm you are the registered owner, and process the redemption. Some banks charge a small fee for this service, typically $5 to $25, though many waive it for customers with established accounts.

If the bond is registered to two people (joint ownership), both owners must be present to redeem it, or one owner must bring a notarized power of attorney from the other. If the registered owner has died, the person redeeming it will need to bring a death certificate and proof they are the legal heir or executor.

The bank will issue you a check or deposit the funds directly to your account. Processing usually takes one to two weeks. If your bank does not handle savings bonds (some smaller institutions don't), ask them to refer you to a bank that does, or contact the Treasury directly.

Redeeming digital bonds through TreasuryDirect

Digital bonds purchased through TreasuryDirect are redeemed entirely online. Log into your TreasuryDirect account, navigate to the "Manage My Securities" section, and select the bond you want to redeem. Confirm the redemption request. The Treasury will deposit the funds into the bank account linked to your TreasuryDirect profile within a few business days.

You do not need to mail anything or visit a bank. The entire transaction happens in your account. Make sure the bank account information in your TreasuryDirect profile is current before you request the redemption, because the Treasury will deposit to whatever account is listed there.

What happens if you redeem before five years

Redeeming a Series EE or Series I bond before the five-year mark costs you the last three months of interest you earned. For example, if you bought a bond 3 years ago and it has earned $150 in interest, you will receive the principal plus roughly $112.50 (three-quarters of the interest). The Treasury calculates this automatically when you redeem.

This penalty does not apply after five years have passed. Once you reach the five-year anniversary, you can redeem at any time and receive all accrued interest with no reduction. If you are uncertain whether your bond has reached five years, check the issue date on the certificate or in your TreasuryDirect account.

Redeeming bonds registered to a minor or deceased owner

If a bond is registered in a child's name, the parent or legal guardian can redeem it at the bank by bringing the child's birth certificate or adoption papers along with their own ID. The child does not need to be present. If the bond is in both the parent's and child's names, both must be present or one must have a notarized power of attorney.

When the registered owner dies, the person handling their estate can redeem the bond by bringing the death certificate, proof of their authority (such as letters testamentary or an executor's certificate), and their own ID. Some banks require a signature may provide from a notary or another financial institution to process a redemption for a deceased owner's estate.

Lost or damaged bonds

If your paper bond is lost, stolen, or damaged beyond recognition, you can still redeem it through the Treasury. Contact the Bureau of the Fiscal Service at 1-844-284-2676 or visit their website. You will need to provide the bond's serial number, issue date, and denomination. The Treasury will verify ownership through their records and issue a replacement or process a redemption.

If you cannot locate the serial number, provide as much information as you remember: the approximate year it was issued, the series (EE, I, or HH), and the amount. The Treasury's customer service team can search their database using this information. The process typically takes several weeks.

Tax reporting when you redeem

When you redeem a savings bond, the interest you earned is subject to federal income tax. The Treasury does not withhold tax automatically, so you will owe it when you file your tax return. If you redeemed bonds during the year, you should receive a Form 1099-INT from the Treasury showing the interest earned, usually by January 31 of the following year.

State and local taxes do not apply to savings bond interest, but federal tax does. If you redeemed multiple bonds or received other interest income, all of it combines on your tax return. Keep records of the redemption date and the interest amount for your tax records.

Frequently Asked Questions

Can I redeem a savings bond before one year?

No. Series EE and I bonds cannot be redeemed during the first year you own them. You must wait at least 12 months from the issue date. After one year, you can redeem, but you will lose the last three months of interest if you do so before the five-year mark.

What if I lost the bond certificate?

Contact the Bureau of the Fiscal Service at 1-844-284-2676 with the bond's serial number and issue date. They can verify ownership through their records and process a replacement or redemption without the physical certificate. If you do not have the serial number, provide the issue year and denomination and they can search for it.

Do I have to pay taxes when I redeem?

Yes. The interest earned on savings bonds is subject to federal income tax. You will receive a Form 1099-INT showing the interest amount, and you will owe tax on it when you file your return. The Treasury does not withhold tax automatically.

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

Digital bonds through TreasuryDirect typically deposit within a few business days. Paper bonds redeemed at a bank usually take one to two weeks. If you redeemed through the Treasury directly (for a lost bond, for example), allow several weeks for processing.

Can I redeem a bond if someone else's name is on it?

If the bond is registered only in another person's name, you cannot redeem it without their permission or a legal document like a power of attorney. If both names are on the bond, both owners must be present or one must have a notarized power of attorney. If the owner has died, the executor or heir can redeem it with a death certificate and proof of authority.