Where to cash your savings bonds

You can cash U.S. savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury if your financial institution won't process them. The easiest route is your own bank — call ahead to confirm they handle savings bonds, because some smaller institutions don't. Bring the bond itself, a valid photo ID, and your Social Security number or tax ID.

If your bank declines, the Treasury's Bureau of the Fiscal Service will cash them by mail. You'll fill out Form PD 1522 (for Series EE and I bonds) or Form PD 1523 (for older series), include a copy of your ID, and mail everything to the address on the form. Processing takes about two weeks after the Treasury receives your package.

Some credit unions and savings banks have limits on how many bonds they'll cash at once, or charge a small fee. Ask about their policy before you go in. If you're cashing a large quantity, the Treasury route may be more straightforward, even though it takes longer.

Key Takeaways

  • Your own bank or credit union is the fastest way to cash savings bonds if they offer the service — call first to confirm.
  • You need the physical bond, a valid photo ID, and your Social Security number or tax ID at the time of cashing.
  • If your bank won't cash them, mail Form PD 1522 or PD 1523 directly to the Treasury's Bureau of the Fiscal Service with a copy of your ID.
  • Series I bonds and EE bonds issued after May 2003 must be held for at least one year, and cashing them before five years costs you the last three months of interest.
  • The Treasury will send you a 1099-INT form for tax purposes if the interest earned exceeds $10 in a calendar year.

What you need to bring or provide

At a bank or credit union, you'll need the bond itself in your possession — you cannot cash someone else's bond without a power of attorney or legal guardianship. Bring a government-issued photo ID (driver's license, passport, or state ID card) and know your Social Security number or tax ID. Some institutions may ask for your account number if you're a customer, but it's not required.

If you're cashing bonds by mail through the Treasury, you don't need the original ID in person, but you must include a photocopy. The form itself (PD 1522 or PD 1523) asks for your name, address, Social Security number, and the bond's series, denomination, and serial number. You can find this information printed on the bond itself.

For bonds registered to a minor or held in a trust, the rules are stricter. A parent or guardian must sign, and for trust-held bonds you may need to provide a copy of the trust document. Call the Treasury or your bank first if this applies to you.

Penalties for cashing before the holding period ends

Series EE bonds and Series I bonds must be held for at least one year before you can cash them. If you try to cash them before that year is up, your bank will refuse. After one year, you can cash them anytime, but there's a cost if you do it before five years have passed.

If you cash an EE or I bond before the five-year mark, you lose the last three months of interest. For example, if you cash a bond at three years and six months, you'll receive interest only through three years and three months. Older bond series (A through D, and older H and HH bonds) have different rules — check the Treasury website or ask your bank about the specific series you hold.

This penalty is automatic and applies to all bonds cashed early, regardless of the reason. The bank will calculate it and reduce your payout accordingly. There's no way around it, so factor this into your decision if you're thinking about cashing before five years.

How the interest is taxed

The interest you earn on savings bonds is subject to federal income tax, but not state or local income tax. You report this interest on your federal tax return in the year you cash the bond. The Treasury will send you a Form 1099-INT if the interest earned in a calendar year exceeds $10 — this form arrives in January of the following year.

You have two choices for when to report the interest: you can report it all in the year you cash the bond (the most common approach), or you can report it each year as it accrues. Most people don't track annual accrual, so they report everything when they cash. If you choose the accrual method, you must report it that way for all your savings bonds going forward — you can't switch back and forth.

Keep the 1099-INT form with your tax records. If you cash bonds in December but the 1099-INT doesn't arrive until January, the interest still counts as income for the year you cashed them, not the year you receive the form.

Cashing bonds registered to someone else

You cannot cash a savings bond unless your name is on it as the owner or co-owner. If the bond is registered only to another person, you'll need legal authority. A power of attorney document signed by the bond owner allows you to cash it on their behalf. A court-issued guardianship or conservatorship order also works.

If the bond owner has died, the bond becomes part of their estate. The executor or administrator of the estate can cash it, but they'll need to provide a death certificate and proof of their authority (usually a court document). If there's no formal estate process, the rules vary by state — contact the Treasury or your bank for guidance on your specific situation.

Bonds held in a trust are cashed by the trustee named in the trust document. The trustee brings the bond, their ID, and a copy of the trust (or a certification of trust) to the bank. The process is the same as for an individual, but the bank will verify the trustee's authority before processing.

What happens after you cash the bond

At a bank, you'll receive the cash or a deposit to your account on the spot, or within one business day if you're depositing to an account. The bank will take the bond and destroy it — you won't get it back. Keep your receipt as proof of the transaction.

If you mail the bond to the Treasury, they'll send you a check to the address you provided on the form. The check is mailed from the Bureau of the Fiscal Service in Parkersburg, West Virginia. It typically arrives within two to three weeks of the Treasury receiving your package, though delays can happen. Don't send cash through the mail — the Treasury only sends checks.

Once a bond is cashed, it stops earning interest immediately. If you cashed it before the five-year mark, the interest penalty has already been applied to your payout. You won't receive any additional payments or statements related to that bond.

Replacing a lost, stolen, or damaged bond

If your bond is lost, stolen, or too damaged to cash, you can file a claim with the Treasury to have it replaced or the value paid out. You'll need to fill out Form PD 1048 and provide as much information as you can about the bond: the series, denomination, issue date, and serial number if you have it. If you don't have all this information, the Treasury can sometimes look it up if you provide your name and Social Security number.

The Treasury will investigate to make sure the bond hasn't already been cashed. This process takes several weeks. Once they confirm the bond is still valid, they'll either issue a replacement bond or pay you the current value, depending on what you request and the bond's status.

If a bond was damaged by fire, water, or wear, bring it to your bank first — they may be able to cash it as-is. If the bank refuses because it's too damaged to verify, that's when you file Form PD 1048 with the Treasury.

Frequently Asked Questions

Can I cash a savings bond at any bank, or only my own bank?

Most banks will cash savings bonds even if you don't have an account there, but it's not may provide. Call ahead to confirm. Some smaller institutions or credit unions don't handle them. Your own bank is the safest bet, but if they decline, the Treasury will cash them by mail.

What if I lost the bond but remember the serial number?

The serial number helps, but you'll still need to file Form PD 1048 with the Treasury to claim it. Provide whatever information you have — series, denomination, issue date, and serial number if you have it. The Treasury can look up bonds using your name and Social Security number even if you don't have the serial number.

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

Savings bonds are all-or-nothing — you cash the whole bond or none of it. You cannot cash a portion. If you have multiple bonds, you can cash some and keep others.

How long does it take to get my money if I mail the bond to the Treasury?

The Treasury typically takes two to three weeks to process a mailed bond after they receive it. Mail delivery adds time on both ends, so plan for four to five weeks total from the time you send it. There's no way to speed this up, so don't mail a bond if you need the money urgently.

Will I owe taxes on the interest when I cash the bond?

You'll owe federal income tax on the interest, but you don't pay it when you cash the bond — you report it on your tax return. The amount depends on your tax bracket. State and local income tax do not apply to savings bond interest.