Where to cash your savings bonds

You can cash savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route for most people is their own bank — walk in with the bond and your ID, and they will cash it on the spot. If your bank does not offer this service (some smaller institutions don't), you can mail the bond to the Treasury or visit a Federal Reserve Bank branch in person.

The Treasury's official redemption page at treasurydirect.gov lists Federal Reserve locations and explains the mail-in process. If you mail bonds, include a signed letter requesting redemption and your Social Security number. The Treasury processes mailed bonds in about four weeks.

Key Takeaways

  • Your own bank is usually the fastest way to cash a savings bond — bring the bond and a photo ID and you can walk out with the money the same day.
  • Series EE and I bonds must reach their issue date before you can cash them; cashing before five years costs you the last three months of interest.
  • The Treasury will mail you a check if your bank will not cash the bond, but the process takes about four weeks.
  • You will owe federal income tax on the interest your bond earned, though not state or local tax.

When you can actually cash a bond

You cannot cash a savings bond the day you buy it. Series EE bonds and Series I bonds both have a one-year holding period — you must own the bond for at least one year before the Treasury will let you redeem it. After that first year, you can cash it whenever you want.

There is a penalty for cashing before five years have passed: you lose the last three months of interest. So if you bought a bond on January 15, 2023, and cash it on January 14, 2028 (just before five years), you get your principal back plus interest through October 2027 — you forfeit the interest from October through December 2027. If you wait until January 15, 2028 or later, you keep all the interest earned.

Series HH bonds (older bonds, no longer sold) work differently and have their own rules. If you own one, the Treasury's website has the specific terms for your bond series.

What happens to the interest when you cash

When you redeem a savings bond, you receive your original purchase price plus all the interest it earned. The Treasury sends you one check for the total amount. You do not get a separate accounting of principal versus interest — it is one payment.

You will owe federal income tax on the interest portion. You do not owe state or local tax on savings bond interest, even if you live in a state with income tax. The Treasury does not withhold the tax automatically, so you will report the interest on your federal tax return the year you cash the bond. If you cashed multiple bonds in the same year, add up all the interest and report it as income.

If you are cashing a bond that has been earning interest for many years, the interest can be substantial. For example, a Series I bond bought ten years ago will have earned interest at the rates that were in effect during each six-month period it was held. You can check how much interest your specific bond has earned by logging into TreasuryDirect or asking your bank when you bring it in to cash.

Cashing bonds owned by a minor or in a trust

If a bond is registered in a child's name, the child must be present to cash it (or a parent with power of attorney). Bring the child's birth certificate or Social Security card as proof of identity. The interest will be reported on the child's Social Security number, not the parent's.

If a bond is held in a trust or estate, the trustee or executor can cash it, but they will need to bring documentation showing their authority — typically the trust document or letters testamentary from the court. Different banks have different requirements, so call ahead and ask what paperwork they need.

What to bring to the bank

Bring the physical bond certificate and a photo ID — a driver's license, passport, or state ID card. Some banks may also ask for your Social Security number. If you are cashing someone else's bond (as a guardian or trustee), bring your ID plus the document that proves you have authority to do so.

Call your bank before you go. Not every branch cashes bonds, and some banks have stopped offering the service entirely. A quick phone call to the branch manager will confirm whether they can do it and whether you need an appointment.

If your bond is lost, stolen, or damaged

If a bond is lost or stolen, contact the Treasury immediately at 1-844-284-2676 or through TreasuryDirect. The Treasury can place a stop on the bond so no one else can cash it, and they can issue a replacement. This process takes time, so report it as soon as you notice it is missing.

If a bond is damaged but still readable, most banks will still cash it. If it is too damaged to read the serial number or issue date, the Treasury can verify your ownership through TreasuryDirect records and issue a replacement bond.

Cashing bonds you inherited

If you inherited a savings bond, you can cash it the same way as any other bond — bring it to a bank with your ID. The interest earned after the original owner's death will be reported on your tax return, not theirs. Interest earned before the death is reported on the deceased person's final tax return (usually handled by the estate or executor).

If the bond was in a safe deposit box or you do not have the physical certificate, the Treasury can look up the bond using the deceased owner's Social Security number and issue a replacement certificate to you as the new owner. You will need to provide proof that you are the rightful heir — usually a will, trust document, or court order.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most large banks and credit unions will cash savings bonds, but not all. Some smaller banks or credit unions have stopped offering the service. Call your bank first to confirm they do it, because you may need to go to a specific branch or make an appointment.

What if I lost the bond certificate?

Contact the Treasury at 1-844-284-2676 or log into TreasuryDirect. They can look up the bond using your Social Security number and issue a replacement certificate. You will need to provide proof of ownership, usually your purchase confirmation or account records.

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

You owe federal income tax on the interest your bond earned, but the Treasury does not withhold it automatically. You report the interest as income on your tax return the year you cash the bond. You do not owe state or local tax on savings bond interest.

What if I cash a bond before it has been five years?

You can cash it, but you lose the last three months of interest. So if you bought a bond on March 1, 2023, and cash it on February 28, 2028, you get interest only through November 2027. Wait until March 1, 2028 or later to keep all the interest.

How much will I get when I cash my bond?

You will receive your original purchase price plus all the interest it earned (minus three months if you cash before five years). You can check the current value of a specific bond by logging into TreasuryDirect or asking your bank when you bring it in.