Where to redeem your savings bonds

You can redeem US savings bonds at most banks and credit unions, or directly through the US Treasury if you own them electronically. The method depends on whether your bonds are paper or digital.

For paper bonds, walk into any bank or credit union with your bond and a valid ID. Most financial institutions will cash them on the spot, though some may ask you to have an account there. Call ahead if you want to be certain they handle savings bonds — not every branch does, but larger locations almost always will.

For electronic bonds held in TreasuryDirect (the Treasury's online system), you log into your account at treasurydirect.gov, select the bond you want to redeem, and request the redemption. The money lands in your linked bank account within a few business days.

Key Takeaways

  • Paper bonds can be cashed at any bank or credit union during business hours with just your bond and a valid ID.
  • Electronic bonds held in TreasuryDirect are redeemed by logging into your account and requesting the redemption online.
  • Series EE and Series I bonds have early redemption penalties if cashed before five years, but no penalty after that point.
  • The Treasury will not cash bonds by mail, but your bank can if you send the bond and a signed form to them.
  • You will receive the full current value of the bond, which includes all accrued interest up to the redemption date.

What happens to your money after redemption

When you redeem a paper bond at a bank, you receive cash or a deposit to your account that same day. When you redeem an electronic bond through TreasuryDirect, the money transfers to the bank account you registered with the Treasury — this usually takes two to three business days.

The amount you receive is the current redemption value of the bond, not what you paid for it. This value includes all the interest the bond has earned since you bought it. You can check the current value of any paper bond by entering its series, denomination, and issue date into the Savings Bond Calculator on treasurydirect.gov.

Early redemption penalties and waiting periods

Series EE and Series I bonds carry a penalty if you redeem them before five years have passed: you lose the last three months of interest. This means if you cash a bond at year four and eleven months, you get back only the value it had at year four and eight months.

After five years, there is no penalty. You can redeem the bond at any time and receive its full current value with all accrued interest included.

Series HH bonds (no longer sold but still held by many people) have different rules — they mature after 20 years and do not have an early redemption penalty, though they do stop earning interest after maturity.

Redeeming bonds by mail

If you cannot visit a bank in person, you can mail your paper bond to your bank with a signed letter requesting redemption. Include a copy of your ID and a form signed by you authorizing the bank to cash it. The bank will deposit the proceeds into your account or send you a check.

The Treasury itself does not cash bonds by mail — you must go through a bank or credit union. Sending a bond directly to the Treasury will result in it being returned to you.

Mailing takes longer than in-person redemption. Budget at least one to two weeks for the bond to arrive, be processed, and for the funds to appear in your account.

What to bring when you redeem in person

Bring your paper bond and a valid photo ID — a driver's license, passport, or state ID card all work. If someone else is redeeming the bond on your behalf, they will need a power of attorney document or a letter from you authorizing them to do so, plus their own ID.

If the bond is registered to a minor or if you are redeeming a bond that belonged to someone who has died, the requirements change. Contact the bank ahead of time to ask what documents you will need — this varies by institution.

Taxes on redeemed savings bonds

When you redeem a savings bond, the interest you earned is subject to federal income tax. You do not pay tax on the original amount you invested, only on the earnings.

You have two options for reporting this income. You can report it all in the year you redeem the bond, or you can report it each year as the bond earns interest (though most people wait until redemption). If you choose to report it each year, you must do so consistently for all your savings bonds.

Savings bond interest is not subject to state or local income tax in most states, but a few states do tax it — check with your state's tax authority if you are unsure. The interest is never subject to Social Security tax or Medicare tax.

Redeeming bonds from a deceased person's estate

If you are the executor or beneficiary of an estate and need to redeem the deceased person's savings bonds, you will need a certified copy of the death certificate and proof of your authority to act on behalf of the estate — usually a letter from the probate court or a copy of the will.

Bring these documents to the bank along with the bonds themselves. The bank will verify your authority and process the redemption. If the bonds are in TreasuryDirect, you will need to contact the Treasury directly with the same documents to transfer or redeem them.

Frequently Asked Questions

Can I redeem a savings bond before it matures?

Yes. Series EE and Series I bonds can be redeemed at any time after purchase, though redeeming before five years means losing the last three months of interest. Series HH bonds can be redeemed anytime after purchase but stop earning interest after 20 years.

What if I lost my paper bond?

Contact the Treasury at 844-284-2676 or visit treasurydirect.gov to report it lost or stolen. The Treasury can issue a replacement, though the process takes several weeks and requires proof of purchase or ownership. If you own the bond electronically in TreasuryDirect, loss is not an issue since it exists only in your account.

Do I have to redeem the entire bond, or can I cash in part of it?

You must redeem the entire bond. You cannot split a single bond into smaller amounts. If you own multiple bonds, you can redeem some and keep others.

How do I know if my bond is still earning interest?

Series EE bonds earn interest for 30 years. Series I bonds earn interest for 30 years. Series HH bonds earn interest for 20 years. Check the issue date on your bond and add the appropriate number of years. You can also use the Savings Bond Calculator on treasurydirect.gov to see the current value and confirm it is still growing.

What if the bank refuses to cash my bond?

Some smaller branches may not handle savings bonds. Ask to speak with a manager or try a different branch of the same bank. If no local bank will cash it, you can mail it to your bank with a signed authorization letter, or redeem it electronically through TreasuryDirect if you can register the bond there.