Where to redeem your savings bond

You can redeem a savings bond 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 handle savings bonds, they can tell you which banks in your area do.

If you prefer not to visit a bank in person, you can redeem bonds electronically through TreasuryDirect, the Treasury's online system. This works only for bonds you already own in a TreasuryDirect account. Paper bonds you hold physically must go through a bank or the Treasury's mail-in process.

The Treasury also accepts bonds by mail if you send them to the Bureau of the Fiscal Service with a completed form. This takes longer — typically two to four weeks — but works if no local bank will redeem them for you.

Key Takeaways

  • Most banks and credit unions will cash savings bonds for you in person with just your ID, usually the same day.
  • Series EE and Series I bonds must reach their final maturity date or you will lose unpaid interest, so check your bond's issue date before cashing it early.
  • You owe federal income tax on the interest your bond earned, but not state or local tax, and you can choose to report it all in the year you cash it or spread it across the years you held it.
  • If you redeem a Series I bond within five years of purchase, you lose the last three months of interest as a penalty.

What happens when you redeem a bond

When you hand a bond to a bank teller, they verify it is genuine, check that it has reached maturity or that you meet the conditions for early redemption, and then issue you a check or deposit the funds into your account. The bank does not charge you a fee for this service.

The amount you receive depends on the type of bond and how long you have held it. Series EE bonds earn interest monthly, and Series I bonds earn interest every six months. If you redeem before the bond reaches its final maturity — 30 years for most bonds — you will receive the purchase price plus all interest earned to date, minus any early-redemption penalty.

The bank will ask for your Social Security number so the Treasury can report the transaction to the IRS. This is normal and required by law.

Early redemption penalties and waiting periods

Series EE bonds can be redeemed as soon as one year after purchase, but if you cash them before five years have passed, you lose the last three months of interest. This penalty applies even if the bond has earned far more than three months' worth. After five years, you can redeem without penalty.

Series I bonds have the same five-year penalty rule. If you redeem within five years of the issue date, you forfeit the last three months of interest. After five years, redemption is penalty-free.

Series HH bonds and older bond types have different rules. Check the bond itself or the Treasury's website for the specific terms of your bond, since rules vary by series and issue date.

Tax reporting when you redeem

The interest your bond earned is subject to federal income tax. You do not owe state or local tax on it. When you redeem, the bank reports the transaction to the IRS using your Social Security number, and you will receive a Form 1099-INT showing the interest amount.

You have a choice in how to report this income. You can report all the interest in the year you redeem the bond, or you can report it spread across all the years you held the bond — whichever benefits your tax situation. If you choose to spread it, you must report it that way consistently for all your bonds of that series.

If you inherited a bond from someone else, the interest earned before you inherited it is taxable to the previous owner's estate, not to you. Only interest earned after you became the owner is your responsibility.

What to bring and what to expect

Bring the physical bond and a government-issued photo ID. The teller will examine the bond to confirm it is not damaged, forged, or reported lost or stolen. They will also verify that you are listed as the owner or authorized payee on the bond.

If the bond is registered to someone else and you are not listed, you cannot redeem it. If the original owner has died, the bond must go through their estate or be transferred to an authorized heir before redemption.

The process usually takes 10 to 15 minutes. Some banks may ask you to wait while they verify the bond's authenticity with the Treasury, which can add time. If the bank cannot verify it immediately, they may ask you to return later or use the mail-in process instead.

Redeeming bonds through TreasuryDirect online

If your bonds are registered in a TreasuryDirect account, you can redeem them without leaving home. Log into your account, select the bond you want to cash, and request redemption. The Treasury deposits the funds into the bank account you have linked to your TreasuryDirect profile, usually within one business day.

This option is only available for bonds you purchased directly through TreasuryDirect or bonds that have been transferred into a TreasuryDirect account. Paper bonds you hold physically cannot be redeemed this way unless you first transfer them into TreasuryDirect, which requires the original owner to initiate the transfer.

TreasuryDirect charges no fee for redemption and processes the transaction immediately. You will still receive a Form 1099-INT for tax reporting purposes.

What to do if a bank refuses to redeem your bond

Some banks, especially smaller ones, do not handle savings bond redemptions because they are infrequent transactions. If your bank declines, ask them which banks in your area do redeem bonds. Larger banks and credit unions are more likely to offer this service.

If you cannot find a bank willing to redeem your bond, you can mail it to the Bureau of the Fiscal Service with Form PD F 1522 (the Savings Bond Redemption Request form). Include a copy of your ID and a letter explaining the situation. The Treasury will send you a check by mail, which typically arrives within two to four weeks.

Do not mail a bond without the proper form and documentation — the Treasury will not process it and may return it damaged. Download the form from the Treasury's website or call 844-284-2676 to request it by mail.

Frequently Asked Questions

Can I redeem a savings bond before it reaches maturity?

Yes, but with restrictions. Series EE and Series I bonds can be redeemed after one year of ownership, though you lose the last three months of interest if you redeem before five years have passed. Other bond types have different rules — check your bond's terms or the Treasury's website for specifics.

What if my savings bond is damaged or torn?

A slightly damaged bond can usually still be redeemed at a bank if the serial number and denomination are readable. Severely damaged bonds must be sent to the Treasury with a letter explaining the damage. They will examine it and either redeem it or send it back if it cannot be verified as genuine.

Do I have to redeem all my bonds at once?

No. You can redeem one bond, some bonds, or all of them whenever you choose. Each bond is redeemed separately, and you can space them out over time. This can be useful for managing your tax liability across multiple years.

What if I lost my savings bond?

Report the loss to the Treasury immediately by calling 844-284-2676 or filing a claim through TreasuryDirect if the bond was registered there. The Treasury can place a stop on the bond so it cannot be cashed by someone else. You will need to provide the bond's series, denomination, and issue date to file a claim.

Can someone else redeem my savings bond for me?

Only if they are listed as a co-owner or authorized payee on the bond. The bank will require that person to show ID and sign the redemption form. If you want someone to redeem a bond on your behalf and they are not listed, you must authorize them in writing or have them present a power of attorney document.