Where to cash your savings bonds

You can cash savings bonds 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 — that's usually enough. Some banks may ask for your Social Security number or a thumbprint, and a few larger institutions require you to be a customer, so calling ahead saves a trip.

If you can't get to a bank, you can mail bonds to the Treasury Department's Bureau of the Fiscal Service. Send them to the address listed on the Treasury website along with a form requesting payment. This takes longer — typically four to six weeks — and you'll receive a check by mail. Keep a copy of everything you send and consider using certified mail so you have proof of delivery.

For Series EE and Series I bonds purchased through TreasuryDirect (the government's online platform), you can also redeem them directly through your TreasuryDirect account without visiting a bank at all. Log in, select the bonds you want to cash, and the money goes to your linked bank account within a few business days.

Key Takeaways

  • Most banks and credit unions will cash your bonds for free, even if you don't bank there, as long as you bring the physical bond and a photo ID.
  • Series EE and Series I bonds held in TreasuryDirect can be redeemed online without leaving home, with funds deposited to your bank account in a few business days.
  • Mailing bonds to the Treasury takes four to six weeks but works if you have no local banking options.
  • Savings bonds must reach their issue date before you can cash them; cashing early may mean losing accrued interest or paying a penalty.
  • You'll receive a 1099-INT form at tax time if your bond interest exceeds $10, and you owe federal income tax on all interest earned.

When you can actually cash your bond

The timing depends on the type of bond. Series EE bonds can be cashed anytime after one year from purchase, but if you cash them before five years have passed, you lose the last three months of interest. Series I bonds have the same one-year minimum, with the same three-month interest penalty if cashed before five years.

Series HH bonds (older bonds, no longer sold) can be cashed anytime after six months, with no interest penalty. If you have bonds from decades ago, check the issue date on the bond itself — that's when the one-year or six-month clock started, not when you received it.

Bonds stop earning interest 30 years after issue. After that point, there's no reason to hold them. If you find old bonds in a drawer, check the issue date: if it's been 30 years or more, cash them immediately since they're earning nothing.

What happens to the interest you've earned

When you cash a bond, you receive the full value — the original purchase price plus all interest earned. For Series EE bonds, the interest is the difference between what you paid and what you receive. For Series I bonds, the interest is built into the redemption value and shown on your TreasuryDirect account before you cash.

The interest is taxable income. You owe federal income tax on it, and most states tax it too. You don't pay tax when the bond matures or when you cash it — you pay when you file your tax return for the year you cashed it. The bank or Treasury will send you a 1099-INT form if the interest exceeds $10, but you may owe tax on smaller amounts too.

Some people hold bonds specifically to use them for education expenses, because there's a federal tax break available: if you cash Series EE or Series I bonds in the same year you pay for may have access to education costs, you may not owe federal tax on the interest. This only works if your income is below a certain threshold, which changes yearly. Talk to a tax professional if you're considering this route.

Cashing bonds held in someone else's name

If you're the registered owner or a co-owner on the bond, you can cash it. If the bond is registered only in someone else's name and they're still living, you need their permission and their signature. Bring both IDs to the bank.

If the bond owner has died, you'll need a death certificate and proof that you're authorized to handle their estate — usually a will, a letter of administration from probate court, or a power of attorney they granted before death. Different banks have different requirements, so call ahead and ask what documents they need. The process is slower than cashing your own bond, sometimes taking several weeks.

What to do if your bond is lost or damaged

If a bond is lost, stolen, or destroyed, you can request a replacement from the Treasury. You'll need to fill out Form PD F 1048 and send it to the Bureau of the Fiscal Service with proof of loss (a police report for theft, for example). The Treasury will verify the bond in their records and issue a replacement, though this can take several months.

If the bond is damaged but still readable, most banks will cash it anyway. If it's so damaged that the serial number or issue date is unclear, the bank may refuse it and direct you to mail it to the Treasury with an explanation of the damage.

Cashing bonds before they mature

You can cash a Series EE or Series I bond anytime after the first year, but the penalty for early redemption is real: you lose the last three months of interest. If a bond has been earning interest for four years and nine months, you get back only four years and six months of interest.

For some people, this penalty is worth it — if you need the money, losing three months of interest is better than not having access to it. For others, it makes sense to wait. Do the math: if you're close to the five-year mark, waiting a few months might be worth more than the cash right now.

Series HH bonds have no interest penalty for early redemption, but they're older bonds and most people no longer own them. If you do, you can cash anytime after six months with no loss.

Reporting the cash-out on your taxes

The interest you earn on savings bonds is subject to federal income tax. You report it on your tax return for the year you cash the bond, not the year you bought it. If you cash a bond in January 2024 that you bought in 2015, you report the interest on your 2024 tax return.

If the interest is $10 or more, the bank or Treasury sends you a 1099-INT form showing the amount. If it's less than $10, you still owe tax on it, but you won't receive a form. Keep your own records of what you cashed and when.

State income tax varies. Some states don't tax savings bond interest, while others do. Check your state's tax rules or ask a tax professional. The interest is never subject to Social Security tax or Medicare tax, only income tax.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash bonds, but policies vary. Some require you to be a customer, and a few have stopped cashing them altogether. Call ahead to confirm. If your bank won't cash it, try another bank or credit union in your area — at least one usually will.

What if I lost the physical bond?

Contact the Treasury's Bureau of the Fiscal Service and file a claim for a lost or stolen bond. You'll need to fill out Form PD F 1048 and provide proof of loss. The process takes several months, but the Treasury can issue a replacement if they find the bond in their records.

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

You cash the entire bond at once — you can't split it. If you own multiple bonds, you can cash some and keep others. If you need only part of the value, you'd have to cash the whole bond and reinvest the rest elsewhere.

What if the bond is worth more than the bank can pay in cash?

Banks can issue a check instead of cash. For very large amounts, ask the bank in advance whether they can process it. If they can't, the Treasury will mail you a check, though this takes longer.

Can I cash a bond online if I don't have a TreasuryDirect account?

Only bonds purchased through TreasuryDirect can be redeemed online. Physical bonds (paper bonds) must be cashed in person at a bank or by mail to the Treasury. If you have an old paper bond, you'll need to visit a bank or mail it in.