How to redeem a savings bond

You can redeem a savings bond at most banks and credit unions, or through the U.S. Department of the Treasury's online system called TreasuryDirect. The method depends on whether your bond is paper or digital, and whether you have the physical certificate. Paper bonds issued before 2012 can be cashed at a financial institution; digital bonds held in TreasuryDirect must be redeemed online. You'll need to wait until the bond has reached its final maturity date or the earliest redemption date (usually one year after purchase) — cashing it before then means you lose the last three months of interest.

The process itself is straightforward once you know which route applies to you. A bank teller can handle a paper bond in minutes. An online redemption through TreasuryDirect takes a few business days to reach your linked bank account. Either way, you receive the full face value plus all accrued interest up to the redemption date.

Key Takeaways

  • Paper savings bonds can be cashed at most banks and credit unions; digital bonds must be redeemed through TreasuryDirect online.
  • You must wait at least one year from purchase before redeeming, and redeeming before the final maturity date costs you the last three months of interest.
  • Bring your bond certificate and a valid photo ID to a bank, or log into TreasuryDirect with your username and password to redeem online.
  • The bank receives your bond and sends payment to your account within a few business days; TreasuryDirect deposits funds directly to your linked bank account.

Redeeming a paper bond at a bank or credit union

Walk into any bank or credit union branch with your physical bond certificate and a valid photo ID. The teller will verify the bond's serial number, check that it has reached the earliest redemption date, and confirm the current value using Treasury tables. They will then give you a check or deposit the funds directly into an account you hold at that institution.

You do not need to have an account at the bank where you redeem — many will cash a bond for a non-customer, though some may charge a small fee. Call ahead if you want to confirm the branch's policy. Bring the bond itself; you cannot redeem it by mail or phone at most banks, though some larger institutions may offer mail-in redemption if you call and ask.

The entire transaction usually takes less than 15 minutes. The bank keeps the physical certificate once it is redeemed.

Redeeming a digital bond through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "ManageDirect" section and select the bond you want to redeem. Confirm the redemption amount (which includes all accrued interest through the redemption date) and authorize the transaction.

The Treasury will verify that the bond has reached its earliest redemption date. If it has, the redemption is processed immediately. The funds are deposited into the bank account you linked to your TreasuryDirect account within one to three business days. You do not receive a physical certificate or check — the transaction is entirely digital.

If you have forgotten your TreasuryDirect password, use the "Forgot Password" link on the login page. If you cannot access your account, call the TreasuryDirect customer service line at 844-284-2676 during business hours.

What happens if you redeem before maturity

Series EE and Series I bonds can be redeemed as early as one year after purchase, but redeeming before the final maturity date (usually 30 years) costs you the last three months of interest. For example, if you redeem a bond 29 years and 9 months after purchase, you receive the value as of 29 years and 6 months — you forfeit three months of accrued interest.

This penalty applies whether you redeem at a bank or through TreasuryDirect. The bank or Treasury will calculate the adjusted value automatically; you do not have to do the math yourself. If you are uncertain whether the penalty applies to your specific bond, ask the bank teller or contact TreasuryDirect before you redeem.

Verifying your bond's current value before redeeming

The Treasury publishes updated bond values monthly. You can look up the current value of a paper bond using the Savings Bond Calculator at treasurydirect.gov. Enter the bond series (EE or I), the issue date, and the denomination, and the calculator shows what the bond is worth today and what it will be worth at maturity.

For a digital bond in TreasuryDirect, log into your account and view the "My Holdings" section. The system displays the current value, the purchase price, the accrued interest, and the next interest-posting date. You can also download a statement showing all your bonds and their values.

If you have a paper bond and cannot find the issue date or series, look at the certificate itself — this information is printed on the front. If the certificate is damaged or the printing is faded, bring it to a bank anyway; the teller can often read it or help you locate the information.

Tax reporting when you redeem

When you redeem a savings bond, you owe federal income tax on the interest you earned. The amount of interest is the redemption value minus the price you paid. You do not owe tax on the principal — only on the earnings.

The Treasury does not automatically report the redemption to the IRS. You are responsible for reporting the interest on your tax return. Keep the redemption receipt or statement from TreasuryDirect as proof of the transaction. If you redeemed a paper bond at a bank, ask for a receipt showing the redemption amount.

You can choose to report the interest in the year you redeem the bond, or you can defer reporting until the bond reaches final maturity. Most people report it in the year of redemption to avoid a large tax bill later. If you are unsure how to report it, consult a tax professional or refer to IRS Publication 550, which covers investment income.

What to do if you cannot find your bond certificate

If you have a paper bond but cannot locate the physical certificate, contact the Treasury's Bureau of the Fiscal Service at 844-284-2676. Explain that you have lost the bond and provide as much information as you can: the series, denomination, approximate issue date, and the name on the bond. The Treasury can search their records and may be able to issue a replacement certificate or process a redemption without the original.

The process takes longer than a standard redemption — typically several weeks — because the Treasury must verify your ownership and ensure the bond has not already been cashed. You will need to provide proof of identity and may need to sign an affidavit stating that you are the legitimate owner.

If the bond is held in a TreasuryDirect account, you do not have a physical certificate to lose. Your account is your proof of ownership, and you can redeem directly through the website.

Frequently Asked Questions

Can I redeem a savings bond before one year has passed?

No. All U.S. savings bonds must be held for at least one year before redemption. If you try to redeem before that date, the bank or TreasuryDirect will reject the request. This rule applies to all bond types and cannot be waived.

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

You must redeem the entire bond. You cannot split a bond or redeem a portion of it. If you own multiple bonds, you can choose which ones to redeem and leave others untouched.

What if the bank says they cannot redeem my bond?

Some smaller banks do not redeem savings bonds or have stopped doing so. If your bank declines, try another bank or credit union in your area — most larger institutions still offer this service. You can also redeem through TreasuryDirect online if the bond is digital, or contact the Treasury directly for help with a paper bond.

How long does it take to receive the money after I redeem?

At a bank, you receive payment immediately — usually the same day. Through TreasuryDirect, the funds are deposited into your linked bank account within one to three business days, depending on your bank's processing time.

Will I owe state income tax on the interest from my savings bond?

No. Savings bond interest is exempt from state and local income tax. You owe only federal income tax on the earnings. This is one of the tax advantages of holding savings bonds.