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 — that's the basic requirement. Many banks will cash it on the spot, though some may ask you to wait a day or two while they verify the bond's authenticity through the Treasury Department.

If you don't want to visit a bank in person, you can cash the bond through the mail by sending it to the Federal Reserve Bank in your region. The Treasury website lists which Federal Reserve Bank handles your state. Include a letter stating your name, address, and the bond's serial number, along with a copy of your ID. Mail it certified so you have proof of delivery. The process takes two to four weeks.

For Series I and Series EE bonds purchased after 2003, you also have the option to cash them online through TreasuryDirect, the government's bond management platform. You'll need to set up an account, link your bank account, and transfer the bonds into it before you can redeem them. This method is fastest if you already use TreasuryDirect.

Key Takeaways

  • Banks and credit unions will cash savings bonds for you in person with just the bond and a photo ID, usually the same day or within a few days.
  • You can mail a bond to your regional Federal Reserve Bank with a copy of your ID and a letter stating which bond you're cashing, taking two to four weeks.
  • Series I and Series EE bonds bought after 2003 can be cashed online through TreasuryDirect if you set up an account first.
  • You will owe federal income tax on the interest your bond earned, but not state or local tax, and you can choose to report it all in the year you cash it or spread it across the years you held it.

What happens to the interest when you cash

The amount you receive includes both what you paid for the bond and all the interest it earned over the years you held it. The bank will give you a single check for the total. You don't pay tax at the moment of cashing — instead, you report the interest on your federal tax return for that year.

The interest is subject to federal income tax but not state or local tax, regardless of where you live. This is one reason savings bonds are sometimes used for education savings: the interest can be tax-free if you meet specific conditions (using the money for may have access to education expenses in the same year you cash the bond), but that requires separate paperwork and planning.

If you held the bond for many years, the interest may push you into a higher tax bracket for that year. Some people choose to cash bonds in different years to spread the tax burden, which is allowed — you don't have to cash all your bonds at once.

Cashing a bond before it reaches full maturity

Series EE and Series I bonds can be cashed anytime after you've held them for one year. If you cash before five years have passed, you'll lose the last three months of interest as a penalty. So if you've held a bond for two years, you get interest for only 21 months instead of 24.

Series HH bonds (older bonds, no longer sold) have different rules: they can't be cashed at all — they can only be exchanged for other bonds. If you own an HH bond, contact the Federal Reserve Bank in your region for instructions on exchanging it.

The one-year minimum and five-year penalty apply to every bond individually. If you own ten bonds, you can cash some while keeping others, and each one's timeline starts from when you bought it.

What to do if you've lost the physical bond

If you own a paper bond and can't find it, you can file a claim with the Treasury Department to have it replaced or cashed. You'll need to fill out Form 8888 (Statement of Claimant) and provide as much information as you can: the series, denomination, serial number if you have it, and the approximate date you bought it.

Send the form to the Bureau of the Fiscal Service, which handles lost and damaged bonds. The process takes several months. If you bought the bond through a bank or employer savings plan, contact them first — they may have records that speed things up.

For bonds held in TreasuryDirect, a lost password or account access is simpler to fix. Log into the TreasuryDirect website and use the account recovery tools, or call their customer service line for help regaining access.

Cashing bonds owned by someone else or a minor

If you're cashing a bond that's registered in someone else's name, you'll need a power of attorney or proof that you're the legal guardian or executor of their estate. A bank will not cash a bond in another person's name without this documentation.

For a bond owned by a minor, a parent or legal guardian can cash it by presenting the bond, their own ID, and proof of guardianship (usually a birth certificate). Some banks may require additional paperwork, so call ahead to ask what they need.

If the bond owner has passed away, the person handling their estate (the executor or administrator) can cash it by providing the death certificate and proof of their authority to act on behalf of the estate.

Tax reporting when you cash

When you cash a savings bond, the bank does not withhold taxes or send you a tax form. You are responsible for reporting the interest on your federal tax return. The interest counts as ordinary income, taxed at your regular income tax rate.

You have two choices for when to report the interest. You can report all of it in the year you cash the bond, or you can report it spread across all the years you held the bond (called the accrual method). Most people report it all in the year of cashing because it's simpler, but if the interest is large, spreading it might lower your tax burden. Talk to a tax professional if you're unsure which method makes sense for your situation.

Keep records of the bond's purchase price and the amount you received when you cashed it. The difference is your interest, and that's what you report to the IRS.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds for non-customers, but policies vary. Call ahead to confirm they offer this service and ask what ID they need. Some smaller banks may decline or ask you to come back another day while they verify the bond.

What if the bank says the bond is fake or damaged?

If a bank refuses to cash your bond, ask them to explain why in writing. You can then contact the Federal Reserve Bank in your region or file a claim with the Bureau of the Fiscal Service. Bring any documentation of when and how you bought the bond.

Do I have to cash the entire bond at once?

Yes. Savings bonds cannot be partially cashed. You cash the whole bond or none of it. If you own multiple bonds, you can cash some and keep others.

What if I'm cashing a bond for someone else?

You'll need legal authority: power of attorney, guardianship papers, or proof you're the executor of an estate. The bank will ask to see these documents along with your ID and the bond itself.

How long does it take to get the money?

At a bank in person, usually the same day or within a few business days. By mail to the Federal Reserve, two to four weeks. Through TreasuryDirect online, one to three business days after you submit the redemption request.