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

Most people cash savings bonds at their own bank or credit union. Walk in with the bond itself, your ID, and proof of Social Security number (your Social Security card, tax return, or driver's license with the number on it). The teller will verify the bond's serial number, confirm you own it, and give you cash or deposit it to your account on the spot. This takes 15 minutes to an hour depending on how busy the branch is.

Not every bank will cash bonds issued by someone else — many require you to be a customer or to have the original owner present. Call ahead and ask whether they cash savings bonds and what documents you'll need. Credit unions are often more flexible than banks, especially if you're a member.

If you don't have a bank account or your bank won't cash the bond, you can open a basic checking account at most banks specifically to deposit the bond proceeds. Some banks waive the minimum opening deposit if you're depositing a savings bond.

Key Takeaways

  • Your own bank or credit union will cash a savings bond in one visit if you bring the bond, ID, and proof of your Social Security number.
  • The U.S. Treasury will cash bonds by mail through the Bureau of the Fiscal Service, though the process takes two to four weeks.
  • If the bond is in someone else's name and they're deceased, you'll need a death certificate and proof you're an authorized heir or executor.
  • Savings bonds cannot be cashed before their issue date, and early redemption before five years may result in a three-month interest penalty.
  • Keep the receipt or confirmation number the financial institution gives you, especially for bonds worth more than $5,000.

The U.S. Treasury's mail-in process for bonds you can't cash locally

If no bank near you will cash your bond, you can send it directly to the Bureau of the Fiscal Service, which is the federal office that manages savings bonds. You'll mail the bond along with a form called FS Form 1522 (Request for Payment of Savings Bond), your ID copy, and a letter explaining why you're requesting payment by mail.

Send everything to the address listed on the form — currently the Bureau of the Fiscal Service in Parkersburg, West Virginia, though you should verify the current mailing address on treasurydirect.gov. The Treasury will send you a check in the mail, which typically arrives two to four weeks after they receive your package. This route is slower but works if you live in a remote area or your bank refuses.

Do not send the original bond through regular mail. Use certified mail with return receipt so you have proof it arrived. Keep a copy of the form and your letter for your records.

What to do if the bond is in a deceased person's name

A savings bond in someone else's name requires proof that you have the right to cash it. If the bond names you as a co-owner or beneficiary, bring that documentation along with your ID. If you're the executor of an estate or the legal heir, you'll need a certified copy of the death certificate and either the will (if you're named executor) or a court order establishing your right to the funds.

Banks handle these situations differently. Some will cash the bond on the spot with a death certificate and ID. Others require a court order or letters testamentary (a document from probate court confirming you're the executor). Call the bank first and ask what they need — this can save you a trip to the courthouse.

If the bank won't handle it, the Treasury's mail-in process also works for inherited bonds. Include the death certificate, proof of your relationship to the deceased, and a letter explaining your authority to cash the bond. The process takes longer but doesn't require a court order in most cases.

Cashing bonds at the Federal Reserve if you're a business or institution

If you're a business, nonprofit, or government agency holding savings bonds, you can cash them at a Federal Reserve Bank. Contact the Federal Reserve Bank in your region directly — they handle large redemptions and institutional accounts differently than retail banks do.

Individual savers rarely need this route. It exists for organizations that hold bonds as reserves or investments and need to redeem them in volume. If you're an individual, your bank or the Treasury mail-in process will be simpler.

Understanding the penalties and timing for early redemption

Savings bonds have a minimum holding period before you can cash them without penalty. Series EE and Series I bonds cannot be redeemed before one year from the issue date — if you try, the bank will refuse. If you redeem before five years, you lose the last three months of interest as a penalty.

For example, if you bought a Series EE bond on January 1, 2020, and cashed it on March 1, 2023, you'd lose the interest earned from December 1, 2022 through February 28, 2023. The bank will calculate this automatically and deduct it from your payout. After five years, you can cash the bond anytime without penalty.

Check the bond's issue date before you go to the bank. If it's less than a year old, the bank cannot cash it. If it's between one and five years old, ask the teller to show you the interest penalty before you sign off on the transaction.

What happens if the bond is lost, stolen, or damaged

A lost or stolen bond can be replaced through the Treasury, but the process takes time. File a report with the Bureau of the Fiscal Service and provide proof of ownership — your purchase records, bank statements showing the purchase, or a copy of the bond if you have one. The Treasury will investigate and issue a replacement bond if they confirm you owned it.

A damaged bond (torn, water-damaged, faded) can usually be cashed at your bank if enough of it is legible to verify the serial number and issue date. Bring it in and ask the teller whether they can process it. If the damage is too severe, the bank will send it to the Treasury for verification, which adds two to three weeks to the process.

Keep your savings bonds in a safe place — a safe deposit box, home safe, or fireproof container. If you lose one, you'll need proof you owned it, which is harder to gather after the fact.

Taxes and reporting when you cash a bond

When you cash a savings bond, the financial institution does not withhold taxes automatically. You owe federal income tax on the interest the bond earned, but you pay it when you file your tax return, not when you cash the bond. Some states also tax bond interest — check your state's tax rules.

The bank or Treasury will send you a Form 1099-INT (Interest Income) the following January if the interest was more than $10. Use this form to report the income on your tax return. If you don't receive one and the interest was under $10, you still owe tax on it — you just report it based on your own records.

Keep the receipt from cashing the bond and any Form 1099-INT you receive. If you cashed multiple bonds in the same year, add up all the interest and report the total.

Frequently Asked Questions

Can I cash a savings bond at any bank, or only at my own bank?

Most banks will cash a savings bond only if you're a customer or if the original owner is present with ID. Some credit unions are more flexible. Call ahead to ask — don't assume your bank will do it. If your bank won't, the Treasury's mail-in process works for anyone.

What if I lost the physical bond but have the serial number?

The serial number alone isn't enough to cash the bond. You need the physical bond itself or proof from the Treasury that you own it. If you lost it, contact the Bureau of the Fiscal Service with your purchase records or bank statements showing the purchase. They can verify ownership and issue a replacement, but this takes several weeks.

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

You don't pay taxes at the moment of cashing — the bank doesn't withhold anything. You owe federal income tax on the interest when you file your tax return. Some states tax bond interest too. The bank will send you a Form 1099-INT if the interest was over $10, which you use to report it on your return.

Can I cash a savings bond if it's been more than 30 years since I bought it?

Yes. Savings bonds stop earning interest after 30 years, but you can still cash them anytime after that. There's no penalty for redeeming after 30 years — you just won't earn any more interest. Bring it to your bank with your ID and cash it like any other bond.

What if the bond is worth more than $5,000?

Banks can cash bonds of any amount, but they may ask for additional verification for large redemptions. Bring extra ID or proof of address. Keep the receipt or confirmation number the bank gives you. For bonds over $10,000, some banks may file a Currency Transaction Report with the federal government — this is routine and not a problem if the money is yours.