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, your ID, and a form of payment authorization (usually a Social Security number). The teller will verify the bond's serial number and current value, then issue you a check or deposit the money directly into an account you provide.

If your bank won't cash it — some smaller institutions decline — the U.S. Treasury will cash it by mail. You'll mail the physical bond to the Treasury Retail Securities Site in Parkersburg, West Virginia, along with a form requesting payment. This takes two to four weeks. You can also cash certain bonds through TreasuryDirect, the government's online platform, if the bond was originally purchased there and you have an active account.

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 whether they offer this service.

Key Takeaways

  • Most banks and credit unions will cash your bond in person without requiring an account, using only your ID and the bond itself.
  • You cannot cash a bond before its final maturity date, but Series EE and I bonds stop earning interest after 30 years and should be cashed or redeemed by then.
  • If you cash a bond before five years have passed, you lose the last three months of interest as a penalty.
  • The interest you earn on savings bonds is subject to federal income tax but exempt from state and local taxes.
  • The Treasury will cash your bond by mail if your bank refuses, though the process takes several weeks.

Understanding the early redemption penalty

If you cash a Series EE or I bond before it has been held for five years, you forfeit the last three months of interest. This is the only penalty — you still receive the full principal plus any interest earned up to that point, minus those three months. For example, if you've held the bond for two years and earned $50 in interest, you'd receive your principal plus $40 (losing three months' worth).

After five years, you can cash the bond anytime without penalty. The interest you've earned continues to accrue until you actually redeem it, so waiting longer means more money, but there's no financial punishment for cashing early once you've hit the five-year mark.

Series HH bonds, which are older and less common, have different rules — they mature after 20 years and cannot be cashed before that point. If you own one, check the issue date on the bond itself to confirm when you can redeem it.

What to bring to the bank

Bring the physical bond certificate and a government-issued photo ID. The teller will need to see both. You'll also need to provide either a bank account number (if you want the money deposited) or authorize a check to be issued in your name.

If the bond is registered in someone else's name but you're authorized to cash it — for instance, as a custodian or executor — bring documentation of that authority. A power of attorney, guardianship papers, or court-issued letter of testamentary will be required. Call the bank ahead of time if you're in this situation, because not all branches handle these cases.

If the bond is in joint names and both owners are present, both should bring ID. If only one owner is present, that person can usually cash it alone, but policies vary by bank — call first to confirm.

Cashing bonds by mail through the Treasury

Request Form PD F 1522 (the "Request for Payment of Savings Bond") from the Treasury's website or by calling 1-844-284-2676. Fill it out completely, including the bond's serial number, series, denomination, and issue date — all printed on the bond itself. Sign and date the form in front of a notary public or bank officer (a witness signature alone is not sufficient).

Mail the form and the original bond to the Treasury Retail Securities Site, 200 Third Street, Parkersburg, WV 26106-1328. Include a cover letter stating your name, address, and the amount you expect to receive. The Treasury will verify the bond, confirm it's may be able to access for redemption, and mail you a check within two to four weeks.

Keep a copy of everything you send. If the check doesn't arrive within six weeks, contact the Treasury at the phone number above with your tracking information.

Tax reporting and what you owe

The interest earned on your savings bond is subject to federal income tax. You report it on your tax return for the year you cash the bond, even if you've held it for decades. The bank or Treasury will not issue a 1099 form automatically — you're responsible for calculating and reporting the interest yourself.

To find out how much interest you've earned, subtract the purchase price from the current redemption value. If you bought a $50 Series EE bond for $25 and it's now worth $48, your interest is $23. That $23 is taxable income in the year you cash it.

Savings bond interest is exempt from state and local income taxes, which can be a meaningful advantage if you live in a high-tax state. Federal tax is unavoidable, but you won't owe state or local tax on the earnings.

Redeeming bonds through TreasuryDirect

If you purchased your bond through TreasuryDirect (the Treasury's online platform) and still have an active account, you can redeem it electronically without visiting a bank or mailing anything. Log into your TreasuryDirect account, select the bond you want to redeem, and request payment. The money will be deposited into the bank account linked to your TreasuryDirect account within one to two business days.

This is the fastest method available, but it only works for bonds bought through TreasuryDirect. Older paper bonds or bonds purchased through a bank or employer cannot be redeemed this way — they must be cashed in person or by mail.

If you've lost access to your TreasuryDirect account, you'll need to recover it or contact the Treasury before you can redeem. The recovery process can take several days, so plan ahead if you're in a hurry.

What happens if your bond is lost or destroyed

If your physical bond certificate is lost, stolen, or damaged, you can request a replacement or immediate payment from the Treasury. Contact the Treasury Retail Securities Site at 1-844-284-2676 and provide as much information as you can about the bond: the series, denomination, issue date, and serial number if you have it.

The Treasury will research the bond in its records using your Social Security number and the details you provide. If they locate it, they can issue a replacement certificate or process a redemption directly. This process typically takes several weeks. If the bond was destroyed in a disaster (fire, flood, etc.), bring documentation of the loss along with your claim.

Frequently Asked Questions

Can I cash a savings bond before it reaches maturity?

You can cash most savings bonds anytime after they've been held for one year, though you'll lose the last three months of interest if you cash before five years have passed. Series HH bonds cannot be cashed before their 20-year maturity date. Check your bond's series and issue date to confirm when you're may be able to access.

What if the bank says they won't cash my bond?

Some banks decline to cash savings bonds due to staffing or policy. You have two options: try another bank (credit unions are often more willing), or mail the bond to the Treasury Retail Securities Site with Form PD F 1522. The Treasury will always cash it, though the process takes two to four weeks.

Do I have to report the interest on my taxes?

Yes. The interest you earn is federal taxable income in the year you redeem the bond. You calculate it yourself by subtracting what you paid for the bond from its redemption value. The interest is exempt from state and local taxes but not federal tax.

Can someone else cash my bond if I give them permission?

A bank will not cash a bond based on verbal permission alone. The person cashing it must either be registered as an owner or have legal documentation (power of attorney, guardianship order, or executor's letter). Bring that documentation to the bank along with the bond and the authorized person's ID.

How do I know what my bond is worth right now?

Visit the Treasury's Savings Bond Calculator at treasurydirect.gov, enter your bond's series, denomination, and issue date, and it will show you the current redemption value. You can also call the Treasury at 1-844-284-2676 and provide the same information over the phone.