You can cash savings bonds at most banks, credit unions, and the U.S. Treasury

The place you cash a bond depends on the type you own and whether you have the physical certificate or a digital record. Paper bonds (Series EE and I bonds issued before 2012) can be cashed at your bank, credit union, or the U.S. Treasury. Digital bonds (issued through TreasuryDirect since 2012) must be cashed through your TreasuryDirect account online — you cannot walk into a bank with them.

Not every bank will cash bonds. Smaller branches sometimes refuse because the process requires them to verify the bond's authenticity and your identity, and they may not have the equipment or training. Call ahead and ask whether the specific branch handles savings bond redemptions. Credit unions are often more willing than large banks, especially if you have an account there.

Key Takeaways

  • Paper bonds can be cashed at your bank, credit union, or directly through the U.S. Treasury by mail or in person at a Federal Reserve Bank.
  • Digital bonds held in TreasuryDirect can only be redeemed through your online account; no bank can cash them for you.
  • You must wait at least one year after purchase to cash any savings bond, and bonds cashed before five years will lose the last three months of interest.
  • Bring the bond certificate and a government-issued ID to a bank; the teller will verify the bond and process the redemption on the spot.
  • The U.S. Treasury processes mail redemptions in about four weeks and pays by check or direct deposit to your bank account.

Cashing paper bonds at a bank or credit union

Bring the physical bond certificate and a government-issued photo ID (driver's license, passport, or state ID) to the teller. The bank will examine the bond to confirm it is genuine, verify your identity, and check that you are the registered owner or an authorized representative. If the bond is registered to someone else, that person must be present or you will need a power of attorney document.

The teller will fill out a form (usually a redemption request) and process the payment. Most banks pay by check on the spot, though some offer direct deposit to your account if you have one there. The entire process typically takes 15 to 30 minutes. If the bank refuses to cash the bond, they must tell you why — common reasons are that they do not handle bond redemptions or they suspect the bond is counterfeit (which is rare but does happen with very old certificates).

Redeeming digital bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the bond you want to redeem. The system will show you the current value, including accrued interest, and ask you to confirm the redemption. Once you submit, the Treasury processes the request and deposits the money into the bank account you have on file with TreasuryDirect.

Redemptions through TreasuryDirect typically post to your bank account within three to five business days. You do not need to visit a bank or provide any physical documents. If you have forgotten your TreasuryDirect login, you can reset it on the website using your Social Security number and email address.

Cashing bonds directly through the U.S. Treasury

If your bank refuses to cash a paper bond or you prefer to work directly with the government, you can mail the bond to the Treasury or visit a Federal Reserve Bank in person. To mail a bond, send the certificate and a completed Form PD 1522 (Request for Payment of Savings Bond) to the address listed on the Treasury website. Include a copy of your ID (not the original) and a letter stating your name, address, and the reason for redemption.

The Treasury processes mailed redemptions in approximately four weeks and sends payment by check or direct deposit. If you live near a Federal Reserve Bank, you can also visit in person with your bond and ID during business hours. Federal Reserve Banks are located in major cities across the country; check the Federal Reserve's website to find the one nearest you.

Timing rules and interest penalties

You must hold a savings bond for at least one year before you can cash it. If you redeem a bond before it has been held for five years, you will forfeit the last three months of interest. For example, if you bought a bond on January 15 and cash it on October 15 of the same year, you lose the interest earned from July 15 onward.

After five years, you can cash the bond without losing any interest. Series EE bonds reach final maturity at 30 years, and Series I bonds at 30 years as well; after that point they stop earning interest, so there is no benefit to holding them longer. Check your bond's issue date and purchase date to calculate when you can cash it penalty-free.

What happens to the money after you cash

The redemption value you receive includes the bond's face value plus all accrued interest. You will receive a Form 1099-INT from the Treasury or your bank showing the interest portion, which you must report on your federal income tax return. The interest is subject to federal income tax but not state or local income tax (in most states).

If you cashed the bond through a bank, keep the receipt or confirmation number. If you redeemed through TreasuryDirect, the transaction appears in your account history. Save these records for your tax file.

What to do if you cannot find your bond or lost the certificate

If you own a paper bond but cannot locate the physical certificate, contact the Treasury's Savings Bond Division at 1-844-284-2676 or visit savingsbonds.gov. They can search their records using your Social Security number and the bond's series and denomination. If they find a record of your bond, they can issue a replacement certificate or process a redemption without the original.

For digital bonds, if you cannot access your TreasuryDirect account, reset your password on the website or call the TreasuryDirect customer service line. If you believe your account has been compromised, contact them immediately to secure it before attempting a redemption.

Frequently Asked Questions

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

No. All savings bonds have a one-year holding period. You cannot redeem a bond before that time, even if you need the money urgently. After one year, you can cash it, but you will lose the last three months of interest if you do so before the five-year mark.

What if the bank says they cannot verify the bond is real?

If a bank suspects a bond is counterfeit or damaged beyond verification, they will refuse to cash it. Ask them to explain their concern in writing. You can then contact the Treasury's Savings Bond Division with the bank's explanation and your bond. The Treasury can verify authenticity and process the redemption if the bond is genuine.

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

Savings bonds are redeemed as a whole unit. You cannot cash half a bond or a portion of its value. When you redeem, you receive the full current value of that bond, including all accrued interest.

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

If you cash at a bank, you usually receive payment the same day by check or within one to two business days if by direct deposit. Through TreasuryDirect, the deposit takes three to five business days. By mail to the Treasury, expect about four weeks.

Will I owe taxes on the interest from my savings bond?

Yes. The interest portion of your redemption is subject to federal income tax. You will receive a Form 1099-INT showing the interest earned, which you report on your tax return. State and local income tax treatment varies by location, so check your state's rules.