Banks and credit unions are your fastest option for cashing savings bonds

Most people cash savings bonds at their own bank or credit union, and this is usually the simplest route. You walk in with the bond, your ID, and sometimes a signature may provide form (depending on the bond's age and value), and the teller processes it on the spot. The funds appear in your account the same day or within one business day.

Not every bank will cash bonds issued by someone else — some require you to be a customer, and some have dollar limits on how much they'll cash at once. Call ahead before you go. If you don't have a bank account or your bank won't help, you have other options that work just as well.

Key Takeaways

  • Your own bank or credit union is the fastest place to cash a savings bond if you have an account there.
  • The U.S. Treasury will cash bonds by mail through the Federal Reserve Bank of your state, and this takes one to two weeks.
  • You need the physical bond certificate, your ID, and sometimes a signature may provide form if the bond is old or worth more than a few thousand dollars.
  • Some bonds require you to wait until maturity or pay a penalty if you cash them early, so check the bond's issue date and type before you go.
  • If you've lost the bond certificate, the Treasury can issue a replacement, but the process takes several weeks.

Cashing bonds through the Federal Reserve by mail

If your bank won't cash the bond or you prefer not to use a bank, you can send the bond directly to the Federal Reserve Bank that serves your state. The Treasury maintains a list of which Federal Reserve Bank handles each state. You'll mail the bond with a form (FS Form 1522 for Series EE and I bonds, or the appropriate form for your bond type) and your ID copy.

Processing takes one to two weeks, and the Treasury will send you a check or deposit the funds into a bank account you specify. This route costs nothing and requires no account, but it's slower than walking into a bank. You also lose the bond certificate in the mail, so keep a copy of everything you send.

What documents you need to bring or send

The exact paperwork depends on the bond's age, value, and who owns it. For a simple case — a bond you own, issued within the last few years, worth under $5,000 — you may need only the bond itself and a photo ID. For older bonds or larger amounts, you'll need a signature may provide, which is a bank officer's or broker's certification that your signature is genuine.

If someone else owns the bond (a parent, grandparent, or deceased person's estate), the rules change. A bond owned by a minor requires a parent or guardian to sign. A bond from a deceased person's estate requires a death certificate and proof that you have authority to cash it — usually a will, trust document, or court order. Ask your bank what they need before you bring the bond in.

Early redemption penalties and maturity dates

Series EE and I bonds have a maturity date — the date when the Treasury stops paying interest. You can cash them before maturity, but Series EE bonds issued before May 2003 lose the last three months of interest if cashed before five years have passed. Series I bonds have no early redemption penalty, but you lose the last three months of interest if you cash them before one year has passed.

Check your bond's issue date before you cash it. If you're close to the five-year or one-year mark, waiting a few weeks might save you money. The bond certificate itself will show the issue date and the maturity date. If you're unsure, the Treasury's website has a tool to look up your bond's terms by series and issue date.

Replacing a lost or damaged bond certificate

If you've lost the physical bond or it's damaged, you can request a replacement from the Treasury. You'll file a claim with the Bureau of the Fiscal Service (the Treasury department that handles savings bonds) and provide proof of ownership — usually your purchase records, tax returns showing the bond, or a bank statement from when you bought it.

The replacement process takes several weeks, and the Treasury may ask for additional proof if your records are incomplete. Once they issue a replacement certificate, you can cash it using the same process as an original bond. Keep copies of all documents you submit, and expect to wait at least a month from the time you file.

Cashing bonds held in a trust or estate

If the bond is part of a trust or an estate you're managing, the bank or Federal Reserve will need to see the trust document or a court order showing you have authority to act. For a revocable living trust, bring a certified copy of the trust agreement. For an estate in probate, bring the death certificate and either the will or a court order naming you as executor.

Some banks will cash these bonds without probate if the amount is small and your state has a simplified procedure for small estates. Ask your bank whether they can do this, and if not, contact the Federal Reserve Bank for your state — they may have more flexibility. The process is slower than cashing your own bond, but it's straightforward once you have the right paperwork.

Tax reporting when you cash a bond

When you cash a savings bond, the interest you've earned is subject to federal income tax. The bank or Federal Reserve doesn't withhold tax automatically — you report it when you file your tax return. If the bond earned more than $10 in interest, the Treasury will send you a Form 1099-INT showing the amount.

You can choose to report the interest in the year you cash the bond, or you can report it in the year the bond matures (if you've been reporting interest annually). Most people report it when they cash the bond. State and local taxes may also apply depending on where you live. Keep the Form 1099-INT with your tax records.

Frequently Asked Questions

Can I cash a savings bond at any bank, or does it have to be my bank?

Most banks will cash bonds only for their own customers, though some will make exceptions for large amounts or bonds issued by the bank itself. Call your bank first. If they won't help, try a credit union you belong to, or use the Federal Reserve mail-in process instead.

What if the bond is in someone else's name but they've given me permission to cash it?

The person whose name is on the bond must be present to sign it, or they must sign a power of attorney form authorizing you to cash it. A bank won't cash a bond in someone else's name without their signature or a legal document proving you can act on their behalf.

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

The Federal Reserve typically processes mailed bonds within one to two weeks. Add time for mail delivery both ways. If you need the money faster, cashing at a bank in person is your best option — usually same-day or next business day.

Do I have to pay taxes on the interest when I cash the bond?

Yes, the interest is taxable income in the year you cash the bond (or the year it matures, depending on how you've been reporting it). You'll receive a Form 1099-INT if the interest is over $10. Report it on your federal tax return; state and local taxes may also apply.

What happens if I cash a Series EE bond before five years?

You lose the last three months of interest if the bond was issued before May 2003. Bonds issued after May 2003 have no early redemption penalty. Check your bond's issue date, and if you're close to the five-year mark, waiting a few weeks might be worth it.