How to redeem a Patriot Bond

A Patriot Bond is a Series EE savings bond issued by the U.S. Treasury between May 2001 and December 2004. To cash one in, you contact the Treasury directly through TreasuryDirect (the official online platform) or your bank, provide proof of ownership, and request redemption. The Treasury then sends you a check or deposits the money into your bank account.

The process takes about four weeks from the time you submit your request. You do not need to wait until the bond reaches full maturity to redeem it — you can cash it in at any time after you have owned it for one year. If you redeem it before five years have passed, you will lose the last three months of interest as a penalty.

Key Takeaways

  • Patriot Bonds can be redeemed through TreasuryDirect online, by mail, or through a bank that holds them for you.
  • You must own the bond for at least one year before you can redeem it; cashing it in before five years costs you three months of accrued interest.
  • The Treasury processes redemption requests in about four weeks and sends payment by check or direct deposit.
  • You will need to prove ownership with a Social Security number or tax ID and the bond's serial number or issue date.

Redeeming through TreasuryDirect online

If your Patriot Bond is registered in your TreasuryDirect account, you can redeem it without leaving your computer. Log in to TreasuryDirect.gov, navigate to the "ManageSecurity" section, and select the bond you want to cash in. Choose your redemption date and whether you want the money sent by check or deposited directly into your bank account. Submit the request.

TreasuryDirect will display the amount you will receive before you confirm the transaction. This amount includes all accrued interest minus the three-month penalty if you are redeeming before the five-year mark. Once you submit, you cannot cancel the request, so double-check the bond serial number and redemption date before you confirm.

Redeeming a physical bond through the mail

If you hold a paper Patriot Bond certificate, you will need to mail it to the Treasury along with a redemption form. Download Form PD F 1522 (the "Request to Surrender Savings Bonds") from the Bureau of the Fiscal Service website or request it by phone at 844-284-2676. Fill in your name, address, Social Security number, and the bond's serial number and issue date.

Mail the completed form and the physical bond certificate to the address listed on the form — typically the Bureau of the Fiscal Service in Parkersburg, West Virginia. Include a copy of your ID to prove ownership. Send everything by certified mail so you have proof of delivery. The Treasury will process the request and mail you a check within four weeks.

Redeeming through a bank

Some banks hold Patriot Bonds in safekeeping for their customers. If your bond is held this way, contact the bank's bond department and ask to redeem it. The bank will handle the paperwork and send the request to the Treasury on your behalf. You will typically receive your payment within two to four weeks after the bank submits the request.

Banks may charge a small fee for this service — usually between $25 and $50 — so ask about the cost before you proceed. This route is useful if you are uncomfortable using TreasuryDirect online or if you want someone else to manage the transaction for you.

What happens to the interest if you redeem early

Patriot Bonds earn interest for 30 years, but the Treasury penalizes early redemption. If you cash in the bond before it has been five years since issue, you lose the last three months of interest. This penalty applies no matter when you redeem — at one year, two years, or four years and 11 months.

For example, if a bond has earned $500 in interest but you redeem it at three years, you will receive the principal plus $375 (the interest minus three months' worth). After five years, there is no penalty, and you receive all accrued interest. The Treasury displays the exact amount you will receive before you confirm the redemption, so you can see the penalty in dollars.

Reporting the interest on your taxes

The interest you earn on a Patriot Bond is subject to federal income tax. You can choose to report the interest each year as it accrues, or you can wait and report all the interest when you redeem the bond. Most people wait until redemption because it is simpler.

When you redeem, the Treasury will send you a Form 1099-INT showing the total interest earned. You report this amount on your federal tax return for the year you redeem the bond. State and local taxes may also apply depending on where you live. Keep the 1099-INT with your tax records.

What to do if you have lost the bond or cannot find it

If you own a Patriot Bond but have lost the physical certificate, you can still redeem it. Contact the Bureau of the Fiscal Service at 844-284-2676 and provide your name, Social Security number, and as much information as you remember about the bond — the issue date, the amount, and the state where it was issued. The Treasury can search its records and issue a replacement certificate or process a redemption directly.

If the bond is in someone else's name or you inherited it, the process is different. The current owner or the executor of an estate must request redemption. You will need to provide a death certificate if the original owner has passed away, and the Treasury may require additional documentation to prove your right to the bond.

Frequently Asked Questions

Can I redeem a Patriot Bond before one year has passed?

No. The Treasury requires you to hold the bond for at least one year before you can redeem it. If you need the money sooner, you will have to wait or explore other options.

What is the three-month interest penalty, and when does it apply?

If you redeem before five years have passed since the bond was issued, you forfeit the last three months of accrued interest. After five years, there is no penalty. The Treasury calculates this automatically and shows you the net amount before you confirm.

How long does it take to receive my money after I redeem?

The Treasury typically processes redemption requests within four weeks. If you redeem through TreasuryDirect and choose direct deposit, the money may arrive faster. Mailed requests may take longer depending on mail delivery time.

Do I have to pay taxes on the interest from a Patriot Bond?

Yes. The interest is subject to federal income tax and possibly state and local tax. You report it on your tax return for the year you redeem the bond. The Treasury sends a Form 1099-INT showing the amount.

What if I cannot remember the serial number of my bond?

If you have the physical certificate, the serial number is printed on it. If you have lost the certificate, contact the Bureau of the Fiscal Service at 844-284-2676 with your name, Social Security number, and the issue date. They can look up the bond in their system.