You can cash most savings bonds at your bank, through the U.S. Treasury, or by mail
The place you cash your bond depends on which type you hold and whether you want to do it in person or by mail. A bank is usually the fastest option if you have an account there — most will cash Treasury bonds without charging a fee. If your bank won't cash it, the U.S. Treasury will process it directly, though that takes longer. Paper bonds issued before 2012 can also go through the mail to a Federal Reserve Bank.
The bond itself must be in your name or you must be listed as a co-owner. If someone else owns it, they have to be the one to cash it, or they need to sign a power of attorney form giving you permission. You'll need to bring identification and the physical bond certificate.
Key Takeaways
- Your bank is usually the fastest place to cash a savings bond, and most banks do this for free if you have an account there.
- The U.S. Treasury will cash bonds directly through TreasuryDirect or by mail, but processing takes several weeks.
- Paper bonds require the original certificate; digital bonds held in TreasuryDirect can be cashed online without a physical document.
- You must be the owner or a co-owner of the bond, and you'll need a government-issued ID to prove your identity.
- Cashing a bond before its maturity date may mean you lose accrued interest, depending on the bond's age and type.
Cashing a bond at your bank
Call your bank first and ask if they cash U.S. savings bonds. Most do, but some smaller banks or credit unions may not. If they do, bring the bond certificate, your government-issued ID (driver's license or passport), and your account information. The teller will verify the bond, check that you're the registered owner, and process the payment into your account or as cash.
Banks typically complete this same day or within one business day. They don't charge a fee for this service. If the bond is registered to someone else, that person must be present with their ID, or they must have signed a power of attorney authorizing you to cash it on their behalf.
Cashing through TreasuryDirect online
If your bond is held in a TreasuryDirect account (digital bonds issued after 2012), you can cash it directly through the TreasuryDirect website without leaving home. Log in to your account, navigate to the bond you want to redeem, and select the cash option. The money goes to the bank account linked to your TreasuryDirect account.
Processing takes three to five business days after you submit the request. You don't need the physical certificate because the bond exists only in digital form. This method works only for bonds you purchased through TreasuryDirect or that were transferred into that account — paper bonds cannot be added to TreasuryDirect.
Mailing a paper bond to a Federal Reserve Bank
If you have an older paper bond and your bank won't cash it, you can mail it to a Federal Reserve Bank. The Federal Reserve Bank serving your region will process it and send payment by check to your address. You'll need to include a letter stating your name, the bond's serial number, and the amount you're requesting. Sign the letter and include a copy of your ID.
Mail the bond and letter to the Federal Reserve Bank in your district. Processing takes two to four weeks, and you won't receive the bond back — the Federal Reserve destroys it after payment. This is slower than using a bank or TreasuryDirect, so use this method only if the other options aren't available to you.
What happens if you cash a bond early
Savings bonds earn interest over time, and the amount you receive depends on when you cash it. If you cash a bond before it reaches final maturity, you'll receive the current redemption value, which includes all interest earned up to that point. However, some bonds impose an interest penalty if you cash them within the first five years — you may lose the last three months of interest.
Series EE bonds and Series I bonds both have this five-year rule. If you bought the bond less than five years ago, you'll forfeit the most recent three months of interest when you cash it. After five years, there's no penalty. Check your bond's issue date and the current date to know whether this applies to you.
Cashing a bond you inherited or received as a gift
If the bond is registered in someone else's name, you cannot cash it yourself. The registered owner must cash it, or they must sign a power of attorney form authorizing you to do so. If the owner has died, the bond becomes part of their estate and must go through probate or be handled according to their will — you'll need court documents or a letter of administration to prove your authority.
If the bond is registered as "owner or beneficiary," the beneficiary can cash it if the owner has died. Bring the death certificate and your ID to the bank, along with the bond. The bank will verify the registration and process the payment to you.
What to bring when you cash a bond
| Cashing Method | What You Need | Processing Time |
|---|---|---|
| Bank in person | Bond certificate, government ID, account information | Same day or next business day |
| TreasuryDirect online | Login credentials, linked bank account | 3–5 business days |
| Mail to Federal Reserve | Bond certificate, signed letter, copy of ID | 2–4 weeks |
Frequently Asked Questions
Can I cash a savings bond at any bank, or only the one where I have an account?
Most banks will cash a savings bond even if you don't have an account there, but policies vary. Call ahead to confirm. Some banks limit this service to account holders. If your bank won't do it, try another bank in your area or use TreasuryDirect or the Federal Reserve.
What if I lost the physical bond certificate?
If you have a digital bond in TreasuryDirect, you don't need the certificate — you can cash it online. For a lost paper bond, contact the U.S. Treasury at 844-284-2676 or visit treasurydirect.gov to request a replacement. You'll need to provide the bond's serial number, issue date, and proof of ownership.
Do I have to pay taxes when I cash a savings bond?
Yes. The interest you earned on the bond is subject to federal income tax. You don't pay tax when you cash it, but you report the interest on your tax return for the year you redeem it. State and local taxes may also apply depending on where you live. Keep records of the redemption value and the original purchase price.
Can someone else cash my bond if I give them permission?
Only if they have a signed power of attorney from you. The power of attorney must be notarized and specifically authorize them to redeem your savings bonds. Bring the original power of attorney document, your ID, and their ID to the bank. Without this document, they cannot cash the bond on your behalf.
What if the bond is registered to two people?
If the bond says "owner and beneficiary," either person can cash it alone. If it says "owner or beneficiary," either person can also cash it. If it lists two owners without "or," both people must be present with their IDs, or one must have a notarized power of attorney from the other.