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 depends on whether you have a relationship with a financial institution and how quickly you need the money.

Most banks and credit unions will cash Series EE and Series I bonds for customers without charge. Call ahead to confirm they handle savings bonds — not all branches do, and some require an appointment. Bring the bond certificate itself, a valid photo ID, and your Social Security number. The teller will verify the bond's authenticity and current value, then issue you a check or deposit the funds directly to your account.

If you do not have a bank account or prefer to work directly with the government, you can redeem bonds through TreasuryDirect, the Treasury's online platform. This requires setting up a TreasuryDirect account and linking it to a U.S. bank account. The process takes a few business days, but there is no middleman and no fees.

Key Takeaways

  • Most banks and credit unions cash savings bonds for free if you have an account there, though you should call first to confirm they offer this service.
  • You will need the physical bond certificate, a valid photo ID, and your Social Security number to cash a bond in person.
  • Series EE bonds must be at least one year old to cash; Series I bonds have the same one-year minimum but lose the last three months of interest if cashed before five years.
  • TreasuryDirect allows you to redeem bonds online without visiting a bank, though the funds take several business days to reach your account.
  • If a bond is lost, stolen, or destroyed, you can file a claim with the Treasury, but the process takes weeks and requires proof of ownership.

Timing rules: when you can actually cash a bond

Series EE bonds must be at least one year old before you can cash them. If you try to redeem one before that anniversary date, the bank or Treasury will refuse. After one year, you can cash at any time with no penalty.

Series I bonds also have a one-year holding period. However, if you cash an I bond before it reaches five years old, you lose the last three months of interest. This is a real cost — on a bond earning 5% annually, three months of interest is roughly 1.25% of the bond's value. If you need the money before five years, you will take that hit.

Both bond types continue earning interest until you redeem them, so the longer you hold, the more you receive. The Treasury updates interest rates for I bonds every six months (in May and November), so the rate your bond earns can change over time.

What happens at the bank: the step-by-step process

When you walk into a bank to cash a savings bond, bring the bond certificate itself, a government-issued photo ID (driver's license, passport, or state ID), and know your Social Security number. The teller will ask you to sign the back of the bond in their presence — do not sign it beforehand.

The teller will then look up the bond's current value using the Treasury's redemption tables. For Series EE bonds, this is straightforward: the Treasury publishes the exact value each month. For Series I bonds, the value depends on when you bought it and what interest rates were in effect during each six-month period you held it. The bank has access to these tables and will calculate it for you.

Once the value is confirmed, you will receive either a check or a direct deposit to your account, depending on the bank's policy and your preference. Some banks process this the same day; others take one to two business days. Ask before you leave the counter so you know when to expect the funds.

Cashing bonds through TreasuryDirect online

TreasuryDirect is the Treasury's website where you can manage savings bonds without visiting a bank. To redeem a bond there, you must first set up a TreasuryDirect account at treasurydirect.gov and link a U.S. bank account for deposits.

Once your account is active, you can add your paper bonds to your TreasuryDirect portfolio by entering the bond's series, denomination, and serial number. The Treasury will then track the bond and allow you to redeem it online. The funds are deposited directly to your linked bank account within three to five business days.

This method works well if you have multiple bonds or prefer not to visit a bank. However, it requires internet access and a bit of setup time. If you have only one or two bonds and a nearby bank that cashes them, the in-person route is usually faster.

What to do if your bond is lost, stolen, or damaged

If a paper bond is lost or stolen, contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 or file a claim online through treasurydirect.gov. You will need to provide the bond's series, denomination, serial number, and the date you purchased it. If you do not have the certificate, provide as much information as you can remember.

The Treasury will investigate and, if they confirm you owned the bond, issue a replacement or pay you its current value. This process typically takes four to eight weeks. In the meantime, the bond cannot be cashed by anyone else — the Treasury freezes it once a claim is filed.

If a bond is damaged but still readable, most banks will still cash it. If it is severely damaged or illegible, the bank may refuse and direct you to file a claim with the Treasury instead. Bring the damaged bond to the bank first; they can tell you whether it is redeemable or whether you need to file a claim.

Taxes you owe when you cash a bond

The interest you earn on savings bonds is subject to federal income tax. When you cash a bond, you do not pay tax at that moment — instead, you report the interest on your federal tax return for the year you redeem it.

The bank or Treasury does not issue a 1099 form automatically. You are responsible for calculating the interest earned (the amount you received minus what you paid for the bond) and reporting it on your return. If you bought a $50 Series EE bond for $25 and cashed it for $52, you owe tax on $27 of interest.

Series I bonds have a special option: you can choose to report the interest each year as it accrues, rather than all at once when you cash the bond. This requires filing Form 8818 with your tax return each year. Some people use this strategy to spread the tax burden across multiple years, though it requires more paperwork. Consult a tax professional if you have a large bond or are unsure how to report it.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions cash savings bonds, but not all branches do. Call ahead to confirm. If your bank does not offer this service, try another bank in your area or redeem through TreasuryDirect instead.

What if I lost the bond certificate?

You cannot cash a bond without the certificate. Contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 to file a claim for a lost bond. Provide the series, denomination, serial number, and purchase date if you have them. The process takes several weeks.

Do I pay taxes when I cash a bond?

No tax is withheld when you cash a bond. However, you owe federal income tax on the interest earned, which you report on your tax return for the year you redeem it. State and local taxes may also apply depending on where you live.

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

At a bank, you usually receive a check or deposit the same day or within one to two business days. Through TreasuryDirect, the funds take three to five business days to reach your linked bank account.

Can I cash a bond for someone else?

No. The person whose name is on the bond must be present to sign it and provide a photo ID. If the bondholder is deceased or incapacitated, the process is more complex and typically requires legal documentation or a court order. Contact the Treasury or your bank for guidance.