Most banks will cash savings bonds, but not all of them, and some charge fees

Your bank can cash a savings bond if you have an account there, but the answer depends on which bank and which bond. Large national banks like Chase, Bank of America, and Wells Fargo typically cash savings bonds for account holders at no charge. Credit unions often do the same. However, smaller regional banks may decline, and some banks charge a fee—usually $5 to $25—even for account holders.

The safest approach is to call your bank's customer service line before you go in. Ask whether they cash savings bonds, whether you need to be an account holder, and whether there is a fee. If your bank declines or charges a fee you do not want to pay, you have other options that cost nothing.

Key Takeaways

  • Large national banks and most credit unions cash savings bonds for free if you have an account, but you should call ahead to confirm your specific bank's policy.
  • The U.S. Treasury will cash any savings bond for free through TreasuryDirect or by mail, with no account requirement and no fee.
  • Your bond's issuing bank—the bank printed on the bond itself—may cash it even if you do not have an account there, though policies vary.
  • Savings bonds must be at least one year old to cash, and you will owe federal income tax on the interest earned, though not state or local tax.

Cashing bonds at the bank that issued them

If your savings bond was issued by a specific bank—the name appears on the bond itself—that bank may cash it even if you do not have an account. This is especially true for older bonds issued decades ago. Call that bank's main number and ask whether they will cash a savings bond issued in their name.

Be aware that this policy is not may provide. Some banks have stopped cashing bonds issued by predecessor banks that merged or closed. If the issuing bank no longer exists or declines, move to the Treasury option below.

Cashing bonds through TreasuryDirect (online, no fee)

The U.S. Treasury will cash any savings bond through TreasuryDirect, the federal government's online bond platform, at no cost. You do not need a bank account, and there is no fee. To do this, you must first set up a TreasuryDirect account at treasurydirect.gov, then link a bank account where the proceeds will be deposited.

Once your TreasuryDirect account is open, you can submit your bond for redemption online. The Treasury will mail you a form to sign and return, or you may be able to sign electronically depending on your bond type. Processing typically takes one to two weeks after the Treasury receives your signed form. The money goes directly to your linked bank account.

Cashing bonds by mail to the Treasury (no fee, slower)

If you do not want to use TreasuryDirect or do not have internet access, you can mail your bond directly to the Treasury. Send the bond, a completed Form PD 1522 (available at treasurydirect.gov), and a copy of your ID to the address listed on the form. Include a letter stating the amount you want to redeem and the bank account where you want the money sent.

Mail your package to the Bureau of the Fiscal Service, Parkersburg, WV 26106-1328. Processing takes four to six weeks from the date the Treasury receives your package. This method is free but slower than TreasuryDirect or a bank.

What you need to bring to a bank

If you are cashing a bond at your bank in person, bring the bond itself, a government-issued photo ID, and your account number if you are an account holder. Some banks may ask for additional information, such as your Social Security number or proof of address, so calling ahead helps you know what to expect.

If the bond is in someone else's name, you will need that person present with ID, or you will need a power of attorney or court order authorizing you to redeem it. Banks are strict about this because bonds are negotiable instruments.

Fees and when they apply

The Treasury charges no fee to cash a bond through TreasuryDirect or by mail. Banks may charge a fee if you are not an account holder, if the bond is very old, or if the bank has a general policy of charging for bond redemptions. Some banks waive the fee for account holders but charge $10 to $25 for non-account holders.

A few banks have stopped cashing savings bonds altogether, particularly if they are small institutions without the infrastructure to process them. This is why calling ahead is worth the five minutes—you may save yourself a trip and a fee.

Tax implications when you cash

When you cash a savings bond, you owe federal income tax on the interest you earned, but not state or local tax. You do not pay the tax at the moment of redemption; instead, you report the interest on your federal tax return for the year you cash the bond. The bank or Treasury will not withhold tax automatically unless you request it.

If you have been deferring the interest on an older bond for many years, the interest amount can be substantial. You may want to consult a tax professional before cashing a large bond to understand your tax liability for that year.

Frequently Asked Questions

Can I cash a savings bond that is less than one year old?

No. All savings bonds must be at least one year old before you can redeem them. If you cash a bond before it reaches one year, you will lose the last three months of interest as a penalty. After one year, you can cash at any time.

What if my savings bond is damaged or torn?

Banks may refuse to cash a damaged bond. The Treasury will usually accept damaged bonds through TreasuryDirect or by mail if you include a letter explaining the damage. Contact the Treasury directly at treasurydirect.gov or call 844-284-2676 to ask about your specific bond.

Can I cash someone else's savings bond?

Only if you have legal authority—you are the co-owner, the named beneficiary, or you hold power of attorney or a court order. The bond owner must be present with ID, or you must provide documentation of your authority. Banks will not cash a bond in someone else's name without proof.

Do I have to cash the whole bond, or can I cash part of it?

Most banks and the Treasury require you to cash the entire bond. You cannot redeem a partial amount. If you need only part of the value, you may want to explore other options, such as using the bond as collateral for a loan, though this is uncommon.

How long does it take to get my money after I cash a bond at the bank?

If you cash in person at your bank, the funds are usually available the same day or within one business day. TreasuryDirect takes one to two weeks after you submit the form. Mailing to the Treasury takes four to six weeks.