Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, even if you don't have an account there. Walk in with the bond itself and a valid photo ID, and the teller can process it on the spot — most banks cash them the same day. If the bond is registered in someone else's name, that person must be present with their ID, or you'll need a power of attorney document.

If you can't visit a bank in person, you can mail the bond to the U.S. Department of the Treasury's Bureau of the Fiscal Service. Send it with a completed FS Form 1522 (the form for cashing bonds by mail) and a copy of your ID to the address listed on the form. Mail delivery takes longer — typically two to four weeks — and you won't have the cash in hand until it arrives.

Some employers offer payroll deduction for savings bonds, and a few will cash them for you directly, though this is less common. Call your HR or payroll department to ask if they offer this service.

Key Takeaways

  • Most banks and credit unions will cash a savings bond for you without requiring an account, and the process usually takes one business day.
  • You need the physical bond and a valid photo ID; if the bond is in someone else's name, that person must be present or you need a power of attorney.
  • Series EE and Series I bonds have a penalty if you cash them before five years have passed — you lose the last three months of interest.
  • If you've held the bond for less than one year, you cannot cash it at all; you must wait until the one-year mark.
  • Cashing a bond triggers a tax bill on the interest earned, which you'll report on your federal tax return the year you cash it.

The one-year holding requirement

You cannot cash a savings bond until you have owned it for at least one year. This rule applies to all savings bonds — Series EE, Series I, and older series. If you try to cash a bond before that year is up, the bank will refuse.

The one-year clock starts from the issue date printed on the bond itself, not from the date you received it. If someone gave you a bond as a gift and the issue date was six months ago, you still have to wait another six months before you can cash it.

Early redemption penalties

If you cash a bond between one and five years after the issue date, you will lose the last three months of interest. This is a fixed penalty — it applies whether you cash the bond at one year and one day, or at four years and 11 months. The bank will calculate what you're owed and subtract those three months automatically.

After five years have passed, there is no penalty. You receive the full value of the bond plus all interest earned, with no deduction.

Series I bonds have an additional consideration: if you cash them before five years, you also forfeit the last three months of interest. However, Series I bonds are often held longer because their interest rate adjusts every six months, and many owners keep them to take advantage of higher rates.

What happens to the interest you've earned

When you cash a bond, you receive the face value plus all the interest it has earned up to that point. The bank will give you a single check or deposit for the total amount. You don't receive the interest separately — it's all combined.

That interest is taxable income to you in the year you cash the bond. You'll receive a Form 1099-INT from the bank or the Treasury showing how much interest was paid, and you'll report that on your federal tax return. If the bond was in a child's name, the interest is taxable to the child, not the parent.

Some people hold savings bonds specifically to defer taxes — they cash them in a year when their income is lower, which can mean paying tax at a lower rate. This is a legitimate strategy, but you still owe the tax eventually.

Bonds registered to two people or a minor

If a bond is registered to two people (listed as "John Smith or Jane Smith"), either person can cash it alone. The bank doesn't require both to be present. If it says "and" instead of "or," both owners must be present or one must have power of attorney.

If a bond is registered to a minor, a parent or legal guardian must cash it on the child's behalf. Bring the child's birth certificate or Social Security card along with your ID. The interest will still be reported as the child's income for tax purposes.

If a bond was issued to someone who has died, the person handling the estate can cash it, but they'll need to bring a death certificate and proof they have authority to act on behalf of the estate — usually a will or court document. Some banks have specific procedures for this, so call ahead.

What to bring to the bank

Bring the physical bond itself and a valid photo ID — a driver's license, passport, or state ID card. That's the minimum. Some banks may ask for additional information like your Social Security number or address, but they can verify these against your ID.

If you're cashing a bond that belongs to someone else, that person must be present with their own ID, or you need a signed power of attorney document. A simple handwritten note saying "I authorize John to cash my bond" is not enough — it needs to be a legal power of attorney, which you can get from an attorney or sometimes from a legal document service.

If the bond is damaged, faded, or torn, bring it anyway. The bank can usually still process it, but if the serial number is illegible, they may need to contact the Treasury to verify it's real.

If you've lost the bond or it's damaged

If you've lost a savings bond, you can still get the money. Contact the Bureau of the Fiscal Service directly with the bond's serial number (if you have it), the issue date, and the face value. They can look up the bond in their system and issue a replacement or process a claim. This takes longer than walking into a bank — usually several weeks — but the bond is still yours.

If the bond is water-damaged, faded, or torn but still readable, most banks will cash it as-is. If it's so damaged that the serial number can't be read, the bank will likely send it to the Treasury for verification, which adds time to the process.

Keep your bond in a safe place — a safe deposit box, a home safe, or with important documents. If you know the serial number and issue date, write that information down separately and store it somewhere secure. That way, if the bond itself is lost, you have the information needed to file a claim.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but not all. Call ahead or ask the teller when you arrive. If your bank won't do it, try another bank in your area — the larger national banks almost always cash them. You don't need to have an account at the bank.

What if I want to cash only part of a bond?

You cannot cash part of a savings bond. Bonds are all-or-nothing — you either cash the entire bond or you don't. If you need only some of the money, you'll have to cash the whole bond and keep the rest, or leave it uncashed.

How long does it take to get the money?

If you cash it in person at a bank, you'll have the money the same day or the next business day. If you mail it to the Treasury, allow two to four weeks for processing and delivery. Some banks may hold the check for a few days if the amount is large, but this is rare for savings bonds.

Do I have to pay taxes when I cash a bond?

You don't pay taxes at the moment of cashing — the bank doesn't withhold anything. But the interest you earned is taxable income, and you'll report it on your federal tax return for that year. You may owe taxes depending on your total income and tax bracket.

What if the bond was a gift and I don't know when it was issued?

Look at the bond itself — the issue date is printed on it. If you can't read it, take the bond to a bank and ask them to help you locate it. If the date is completely illegible, contact the Treasury with the serial number and they can look it up in their records.