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

The easiest place to cash a savings bond is usually your own bank or credit union. Most financial institutions will cash them for free during business hours, and you'll get your money the same day. If your bank won't cash them, the U.S. Treasury will, though that route takes longer and requires mailing the bonds.

Where you can cash depends on the bond's age and type. Series EE bonds and Series I bonds can be cashed at any point after you've held them for one year. If you cash before five years have passed, you lose the last three months of interest as a penalty. Paper bonds and digital bonds (held in TreasuryDirect) have different cashing procedures, so you'll need to know which one you own.

Key Takeaways

  • Your bank or credit union is the fastest way to cash paper savings bonds, usually the same day with no fee.
  • You must have owned the bond for at least one year to cash it, and cashing before five years costs you three months of interest.
  • Digital bonds held in TreasuryDirect can only be cashed through your TreasuryDirect account online, not at a bank.
  • The U.S. Treasury will cash bonds by mail if your bank refuses, but the process takes several weeks.
  • You'll owe federal income tax on the interest earned, though not state or local tax.

Cashing paper bonds at your bank or credit union

Bring your paper bond and a valid photo ID to any branch of your bank or credit union. The teller will verify the bond's serial number and your identity, then deposit the cash into your account or give it to you in person. Most banks process this instantly and charge no fee. Some credit unions may ask you to be a member, but many will cash bonds for non-members as well.

Call ahead if you're cashing a large number of bonds or a bond worth more than a few thousand dollars. Some branches keep limited cash on hand and may need to order it. A few banks have stopped cashing bonds altogether, so if you get turned away, ask if they can refer you to another branch or institution that will.

Cashing digital bonds through TreasuryDirect

If you own bonds in a TreasuryDirect account, you cannot cash them at a bank. Instead, log into your TreasuryDirect account at treasurydirect.gov, navigate to the "Manage My Securities" section, and select the bond you want to redeem. The system will walk you through the redemption process online.

The money will be deposited directly into the bank account linked to your TreasuryDirect account within one to three business days. You cannot receive a paper check or cash withdrawal. If you need to change the bank account on file, do that before you start the redemption process.

Cashing bonds through the U.S. Treasury by mail

If your bank refuses to cash your paper bond, you can mail it directly to the Treasury. Send the bond, a completed Form PD 1048 (Request to Redeem Series EE or Series I Savings Bonds), and a copy of your ID to the address listed on the form. You can download the form from treasurydirect.gov or request it by phone at 844-284-2676.

The Treasury will mail you a check, which typically arrives four to six weeks after they receive your package. Use certified mail with return receipt so you have proof of delivery. The Treasury does not cash bonds in person at any office, and there is no way to speed up the mail process.

What happens to the interest when you cash

When you cash a bond, you receive the principal (the amount you paid) plus all the interest it has earned. The interest is subject to federal income tax in the year you cash the bond. You do not owe state or local income tax on savings bond interest, even if you live in a state with an income tax.

If you cashed the bond before it reached five years old, you forfeit the last three months of interest as a penalty. For example, if you cashed a bond at four years and nine months, you would receive interest only through four years and six months. The Treasury calculates this automatically when you redeem.

Tax reporting when you cash bonds

The financial institution that cashes your bond will not send you a tax form. Instead, you are responsible for reporting the interest on your federal tax return. Keep records of how much interest you received, which you can find on your bond's redemption statement or in your TreasuryDirect account history.

If you have been holding the bond for many years, the interest may be substantial. Some people choose to cash bonds in a year when their income is lower to reduce their tax burden. You can also spread the tax across multiple years by cashing bonds gradually rather than all at once.

What to do if you've lost a bond or it's damaged

If your paper bond is lost, stolen, or too damaged to cash, you can file a claim with the Treasury. Complete Form PD 1048-1 (Claim for Loss of Savings Bond) and mail it with any documentation you have — a photo of the bond, your purchase records, or a statement from your bank. The Treasury will investigate and may issue a replacement or refund.

The process takes several months. If the bond was registered in your name only (not jointly), the claim is stronger. Keep copies of everything you send. If the bond was jointly registered and the other owner has already cashed it, your claim will be denied.

Frequently Asked Questions

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

No. All savings bonds must be held for at least one year before you can cash them. If you try to redeem before that, the bank or Treasury will refuse. This is a federal rule that applies to all bonds.

What if my bank says they don't cash savings bonds anymore?

Ask the teller for the name of another bank in the area that does, or call ahead to nearby branches. If no local bank will cash it, you can mail the bond to the U.S. Treasury with Form PD 1048. This takes four to six weeks but always works.

Do I have to report the interest when I cash the bond?

Yes. The interest is taxable federal income in the year you cash the bond. You report it on your tax return. The bank or Treasury will not send you a form, so keep your redemption statement as proof of how much interest you received.

Can someone else cash my bond if I give them permission?

No. Only the person whose name is on the bond can cash it. If the bond is registered to two people, either one can cash it alone. If you want someone else to cash it, you would need to add them as a co-owner before you try to redeem, which is not possible after the bond is issued.

What if I cash a bond and then change my mind?

Once a bond is cashed, it cannot be reversed. The Treasury will not reissue it or refund the transaction. If you cashed it by mistake, your only option is to contact the bank or Treasury immediately to explain, though they are unlikely to undo the transaction.