How to Cash In Your Paper Savings Bonds

Where to redeem paper savings bonds

You can redeem paper 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 bonds and your ID, and staff will process the redemption on the spot. If your bank does not handle savings bonds (some smaller institutions don't), ask them to refer you to a bank in your area that does, or contact the Treasury directly.

The Treasury's official redemption path is through TreasuryDirect, their online platform, but paper bonds cannot be redeemed there. Instead, you mail the bonds to the Treasury's Bureau of the Fiscal Service, or you can redeem them in person at a Federal Reserve Bank branch if one is near you. This route takes longer — typically two to four weeks by mail — so it is best used only if your bank cannot help.

Key Takeaways

Your own bank or credit union is the fastest way to redeem paper savings bonds; most can process them the same day you walk in.
You will need the physical bonds, a government-issued ID, and proof of ownership if someone other than the registered owner is redeeming them.
Series EE and Series I bonds have different maturity schedules and penalties for early redemption, so check your bond's issue date before you cash it.
If you redeem before the bond reaches final maturity, you may lose accrued interest or face a penalty, depending on the bond type and how long you have held it.
The Treasury will send you a check by mail if you redeem through the Federal Reserve or by mail, which adds two to four weeks to the process.

What you need to bring to the bank

Bring the physical paper bonds themselves, a government-issued ID (driver's license, passport, or state ID), and your Social Security number. The bank will verify that you are the registered owner or an authorized representative. If the bonds are registered in someone else's name — for example, a deceased parent's — you will need additional paperwork: a death certificate, proof of your relationship, and sometimes a court document showing you have authority over the estate.

If the bonds are registered in two names (joint ownership), both owners should be present if possible. If only one owner can attend, the bank may require a notarized letter from the absent owner authorizing the redemption, or they may require both signatures on the redemption form itself. Call your bank ahead of time to ask what they need — requirements vary by institution.

Understanding early redemption penalties and waiting periods

Series EE bonds can be redeemed after one year, but if you cash them before five years have passed, you lose the last three months of interest. So if you redeem a Series EE bond at year three, you receive interest only through year 2 and nine months. After five years, there is no penalty — you get all accrued interest. Series EE bonds continue earning interest for 30 years from issue.

Series I bonds (inflation bonds) also require a one-year holding period before redemption. If you redeem before five years, you lose the last three months of interest, just like Series EE. After five years, you can redeem without penalty and receive all accrued interest. Series I bonds earn interest for 30 years.

Check the issue date printed on your bond to know how long you have held it. If you are close to a penalty threshold — say, at four years and eleven months on a Series EE bond — waiting a few weeks might preserve three months of interest. The bank can tell you the exact redemption value for your specific bond if you show them the issue date.

How the bank calculates your redemption value

The bank does not calculate the value themselves. They look up your bond's series, denomination, and issue date in the Treasury's official redemption tables, which are updated monthly. The redemption value includes the face value of the bond plus all accrued interest, minus any penalty if you are redeeming early.

For example, a $100 Series EE bond issued in January 2020 and redeemed in January 2025 would be worth more than $100 because it has earned interest for five years. The exact amount depends on the interest rate that was in effect when the bond was issued — Series EE bonds issued at different times earn at different rates. The bank's system will show you the exact redemption value before you sign anything.

What happens after you redeem

If you redeem at your bank in person, you typically receive a check the same day or within one business day. Some banks offer to deposit the funds directly into your account instead, which is faster and safer than carrying a check. Ask the teller which options they offer.

If you redeem by mail through the Treasury or at a Federal Reserve Bank branch, the Treasury will mail you a check. This process takes two to four weeks from the date they receive your bonds. Include a letter with your name, address, Social Security number, and the bond details, and mail everything to the Bureau of the Fiscal Service address (available on the Treasury's website). Do not send bonds by regular mail without tracking — use certified mail or a carrier that provides proof of delivery.

Redeeming bonds registered to a minor

If the bonds are registered in a child's name, a parent or legal guardian can redeem them, but the bank will require proof of guardianship — usually a birth certificate showing the parent's name, or a court order if guardianship is not automatic. The redemption value is treated as income to the child for tax purposes in the year it is redeemed, so the parent may need to report it on the child's tax return.

Some parents hold bonds in a child's name as a savings tool and wait until the child is an adult to redeem them. If that is your plan, you can transfer the bonds to the child's name once they reach the age of majority in your state (usually 18), and then the child can redeem them themselves.

Redeeming bonds when the owner has died

If the bond owner has passed away, the person handling the estate (the executor or administrator) can redeem the bonds on behalf of the estate. You will need to bring the death certificate, proof of your authority (such as a letter from probate court or a certified copy of the will), and your ID. Some banks require the death certificate to be certified by the state vital records office; ask ahead.

If there is no formal probate process and the estate is small, some banks may redeem the bonds under your state's small estate laws, but this varies. Contact your bank and the Treasury to understand what paperwork your situation requires. The redemption value becomes part of the deceased person's final tax return or the estate's tax return, depending on how the estate is structured.

Frequently Asked Questions

Can I redeem a paper savings bond online?

No. Paper bonds cannot be redeemed through TreasuryDirect or any online system. You must redeem them in person at a bank or credit union, or by mailing them to the Treasury. If you own digital bonds through TreasuryDirect, those can be redeemed online through your account.

What if my bank says they do not redeem savings bonds?

Ask them to refer you to another bank in your area that does. Most large banks and credit unions handle savings bond redemptions, but some smaller institutions have stopped offering the service. You can also redeem by mail through the Treasury's Bureau of the Fiscal Service, though this takes two to four weeks.

Do I have to pay taxes when I redeem a savings bond?

The interest earned on savings bonds is subject to federal income tax in the year you redeem the bond. You do not pay tax when you cash it — you report the interest on your tax return. State and local taxes do not apply to savings bond interest. If the bond was issued before 1990 and you have been deferring the interest, you will owe tax on all accrued interest in the redemption year.

What if I lost or damaged my paper bond?

Contact the Treasury's Bureau of the Fiscal Service with the bond's series, denomination, and issue date. They can issue a replacement if you can prove ownership. Bring your ID and any documentation you have (purchase records, old statements). The process takes several weeks.

Can I redeem only part of a bond?

No. Savings bonds are redeemed in full. You cannot cash in half of a $100 bond and keep the other half. If you need only part of the value, you would have to redeem the entire bond and reinvest the remainder elsewhere.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.