Where and how to redeem a savings bond

You can redeem a savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether your bond is a paper bond or a digital bond held in TreasuryDirect.

For paper bonds, walk into any bank or credit union where you have an account and ask to redeem it. Bring the physical bond and a valid ID. Most institutions will cash it the same day, though some may require a few business days to process. If you don't have a bank account, you can redeem paper bonds at a Federal Reserve Bank — find the one nearest you on the Federal Reserve's website.

For digital bonds held in TreasuryDirect (the Treasury's online platform), log into your account at treasurydirect.gov, select the bond you want to redeem, and request the redemption. The money goes directly to your linked bank account within one to two business days. You cannot redeem digital bonds at a physical bank.

Key Takeaways

  • Paper savings bonds can be redeemed at any bank or credit union where you have an account, or at a Federal Reserve Bank if you don't.
  • Digital bonds in TreasuryDirect must be redeemed through your online account and take one to two business days to reach your bank account.
  • You must wait until a bond reaches its final maturity date or pay a penalty equal to the last three months of interest if you redeem early.
  • Bring the physical bond and a valid ID to a bank; no appointment is needed for most institutions.
  • The Treasury will send you a 1099-INT form for tax purposes if your bond earned more than $10 in interest during the year.

Penalties for redeeming before maturity

Most savings bonds have a holding period before you can redeem them without penalty. Series EE and Series I bonds cannot be redeemed in the first year you own them. If you redeem them between year one and year five, you lose the last three months of interest.

After five years, you can redeem without penalty. Once a bond reaches its final maturity date (typically 30 years from issue), it stops earning interest, and you should redeem it. The Treasury will not automatically cash it for you.

If you are unsure whether your bond has reached five years or final maturity, check the issue date printed on the bond itself or look it up in TreasuryDirect. The penalty is automatic — the bank or Treasury will deduct it from your redemption amount.

What happens to the interest you earned

When you redeem a bond, you receive the full face value plus all interest earned to that point. The interest is included in the cash payment; it is not separated out. For example, if you redeem a $100 Series I bond that earned $15 in interest, you receive $115 total.

That interest is taxable income in the year you redeem the bond. The Treasury will issue you a Form 1099-INT if the bond earned more than $10 in interest during the tax year. You report this on your federal tax return. Some states also tax savings bond interest, so check your state's rules.

If you bought the bond with money from a minor's account or as a gift, the interest may be taxable to the person who owns the bond, not the person who bought it. Keep your redemption records so you can match them to the 1099-INT when it arrives.

Redeeming bonds held in someone else's name

If you are the registered owner or co-owner of a bond, you can redeem it. If the bond is registered in someone else's name only, you cannot redeem it without their permission and signature, even if you have physical possession of the bond.

If the bond owner has died, the redemption process depends on whether the bond is in TreasuryDirect or paper form. For digital bonds, the estate or authorized representative must contact the Treasury with a death certificate and proof of authority. For paper bonds, bring the bond, a death certificate, and proof that you are authorized to act on behalf of the estate (such as letters testamentary or a court order) to a bank or Federal Reserve Bank.

If you are unsure whether you have the right to redeem a bond, contact the Treasury's Savings Bonds customer service at 844-284-2676 before attempting to redeem it at a bank.

Lost, stolen, or damaged bonds

If a paper bond is lost or stolen, contact the Treasury immediately at 844-284-2676. Provide the bond's serial number if you have it, along with the issue date and denomination. The Treasury can place a stop on the bond to prevent someone else from cashing it and can issue you a replacement.

If a paper bond is damaged but still readable, most banks will still accept it for redemption. If it is too damaged to read, bring it to a bank anyway — they can contact the Treasury to verify the bond's details and process the redemption.

Digital bonds in TreasuryDirect cannot be lost or stolen in the traditional sense because they exist only in your online account. If someone gains unauthorized access to your account, change your password immediately and contact the Treasury's customer service line.

Redeeming bonds through a financial advisor or attorney

You do not need a financial advisor or attorney to redeem a savings bond — the process is straightforward enough to do yourself. However, if you own a large number of bonds or the redemption is part of an estate settlement, an attorney or financial advisor can handle it on your behalf.

If you use a representative, you will need to sign a power of attorney form authorizing them to redeem the bonds. The bank or Treasury will require this document along with a copy of your ID. Make sure the power of attorney is specific to savings bond redemption and is notarized if the bank or Treasury requests it.

Some banks charge a small fee to redeem bonds on behalf of someone else, so ask before you authorize the transaction. For TreasuryDirect bonds, you can grant limited access to your account to a representative without giving them full control.

Frequently Asked Questions

Can I redeem a savings bond at any bank, or only the one where I have an account?

Most banks will redeem savings bonds for non-customers, but policies vary. Call ahead to confirm. If a bank refuses, try a different bank or go to a Federal Reserve Bank, which will redeem bonds for anyone with a valid ID.

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

Contact the Treasury at 844-284-2676 with the serial number, issue date, and denomination. They can verify the bond exists and issue a replacement or process a redemption directly. You will need to provide proof of ownership.

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

Savings bonds are redeemed as a whole — you cannot cash in a portion. If you own a $100 bond, you redeem all $100 (plus interest) or none of it.

How long does it take to get the money after I redeem a bond?

At a bank or Federal Reserve Bank, you usually receive cash or a check the same day. For TreasuryDirect digital bonds, the money reaches your linked bank account within one to two business days.

Will redeeming a savings bond affect my taxes or benefits?

The interest you earn is taxable income and must be reported on your federal tax return. If you receive means-tested benefits like Supplemental Security Income, the redemption may affect your benefit amount — contact your benefits administrator to ask.