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

You can cash a US savings bond at most banks and credit unions, even if you don't have an account there. Walk in with the bond itself, your government-issued ID, and your Social Security number or tax ID. The teller will verify the bond's serial number and current value, then give you cash or deposit the proceeds into an account. Most banks process this same day, though some may take one to three business days if they need to verify the bond with the Treasury.

Not every branch handles savings bonds — call ahead to confirm. Larger branches and main offices are more likely to have staff trained in bond redemption than smaller locations. If your bank refuses, ask for the name of a bank in your area that does; most communities have at least one institution that handles them regularly.

Credit unions often have fewer restrictions than banks and may be more willing to cash bonds for non-members. Call your local credit union first to ask about their policy and any fees they charge.

Key Takeaways

  • Banks and credit unions can cash your bond the same day if you bring the physical bond, a government ID, and your Social Security number.
  • The Treasury Department can mail you a check if no local bank will cash your bond, though this takes two to four weeks.
  • Series EE and I bonds have penalties if you cash them before five years, so check your purchase date before you go.
  • You will owe federal income tax on the interest your bond earned, but not state or local tax.
  • If you lost the bond or it was damaged, the Treasury can issue a replacement, but the process takes several weeks.

The Treasury Department as a backup if banks won't help

If no bank or credit union in your area will cash your bond, you can redeem it directly through the US Treasury. Mail the bond to the Bureau of the Fiscal Service along with a form requesting redemption. You'll need to include a copy of your ID and sign the form in front of a notary public or bank officer.

Send everything to the address listed on the Treasury's website for your state. The Treasury will mail you a check within two to four weeks of receiving your request. This route takes longer than a bank but works if you have an older bond or an unusual type that local institutions don't handle.

What happens if your bond is lost or damaged

A torn, faded, or water-damaged bond can still be cashed at a bank if the serial number is readable and the bond is otherwise intact. If the bond is too damaged to read or has been lost entirely, contact the Treasury directly. You'll need to provide proof of purchase — usually a receipt or bank statement showing the original purchase — and your ID.

The Treasury will research their records to confirm you own the bond, then issue a replacement. This process takes four to eight weeks. If you can't find proof of purchase, the Treasury may still help, but verification takes longer. Start this process as soon as you realize the bond is missing or damaged, since there's no time limit but the sooner you report it, the sooner you can access your money.

Early redemption penalties for Series EE and I bonds

Series EE bonds and Series I bonds have a five-year holding period. If you cash either type before five years have passed, you lose the last three months of interest. For example, if you cash a bond at four years and eleven months, you'll only receive interest through four years and eight months.

Series HH bonds and older bond types have different rules — some have no penalty for early redemption, while others require you to hold them longer. Check your bond's series letter and the purchase date before you cash it. The bank teller can look up the specific terms, or you can check the Treasury's bond information page online.

If you're close to the five-year mark, waiting a few weeks or months can save you real money, especially on bonds with higher interest rates. Calculate whether the interest you'll earn outweighs any urgency you have to cash the bond now.

Tax reporting when you cash a bond

The interest your bond earned is subject to federal income tax in the year you cash it. You don't owe state or local tax on savings bond interest, even if you live in a state with income tax. The bank will not withhold taxes automatically — you'll report the interest on your tax return when you file.

If the bond earned a large amount of interest, you may want to set aside money for taxes or make a quarterly estimated tax payment to the IRS. The Treasury will send you a Form 1099-INT in January showing the interest earned; use this when you file your taxes.

Some people hold bonds specifically to pay for education expenses, because there's a federal tax break for Series EE and I bonds used that way. If you think you might may have access to, talk to a tax professional before you cash the bond, since you have to meet specific requirements to claim the exclusion.

Cashing bonds held in someone else's name or in an estate

If you're trying to cash a bond that was registered in a deceased person's name, you'll need to provide a death certificate and proof that you have the authority to handle their estate — usually a will, trust document, or court order naming you as executor or administrator. The bank will verify these documents before processing the redemption.

If a bond was registered in two names (the original owner and a beneficiary), either person can cash it during the original owner's lifetime. After the owner dies, only the beneficiary can redeem it. Bring the death certificate and your ID to the bank, along with the bond itself.

If the estate is complicated or the bank asks for documents you don't have, contact the Treasury directly. They can walk you through what's needed and may accept different forms of proof depending on your situation.

What to bring and what to expect at the bank

Bring the physical bond itself — you cannot cash a bond based on a photo or a copy. Bring a government-issued photo ID (driver's license, passport, or state ID card). Bring your Social Security number or tax ID written down, since you'll need to provide it. If you're cashing a bond for someone else, bring their ID and written authorization, or a power of attorney document if you have one.

The teller will examine the bond to confirm it's genuine and check the serial number against Treasury records. They'll calculate the current value based on the bond's series, purchase date, and interest rate. The whole process usually takes 15 to 30 minutes. You can take the money as cash or ask them to deposit it into a bank account.

If the teller says they can't process it, ask why — it may be a training issue, a system problem, or a genuine reason like the bond being counterfeit or already redeemed. If you believe the bond is legitimate, ask for the manager or try a different bank.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks can cash savings bonds, but not all branches do. Call ahead to confirm the bank handles bond redemptions. If your bank won't, try a larger branch, a different bank, or a credit union. The Treasury can mail you a check if no local institution will help.

What if I don't have the physical bond anymore?

Contact the Treasury immediately with proof of purchase (receipt or bank statement). They'll research their records and issue a replacement bond or check. This takes several weeks. If you've already cashed it, you won't be able to redeem it again.

Do I have to pay taxes when I cash a bond?

Yes, the interest is subject to federal income tax in the year you cash it. You'll report it on your tax return using the Form 1099-INT the Treasury sends you. State and local taxes do not apply to savings bond interest.

What if my bond is worth more than I expected?

Savings bonds earn interest monthly and compound semiannually. Older bonds, especially those held for decades, can be worth significantly more than their face value. The bank will calculate the exact current value when you bring it in. You can also check the value yourself using the Treasury's savings bond calculator online.

Can I cash a bond if I'm not the registered owner?

Only the registered owner or a named beneficiary can cash a bond during the owner's lifetime. If the owner has died, only the beneficiary can redeem it. If you have power of attorney or are the executor of an estate, bring those documents along with the death certificate.