Where to cash your bond depends on the type and who issued it

You can cash a savings bond at a bank, credit union, or the U.S. Treasury, but the route depends on whether you hold a paper bond or a digital one. Paper Series EE and I bonds go to your bank or credit union first — most will cash them on the spot if you're an account holder. Digital bonds held through TreasuryDirect (the Treasury's online platform) are redeemed directly through your TreasuryDirect account, with the money deposited to your linked bank account within one to three business days.

If your bank won't cash the bond — some smaller institutions decline — you can mail it to the Federal Reserve Bank serving your region, or contact the Bureau of the Fiscal Service directly. The Treasury also runs a Savings Bond Wizard tool on its website that tells you which Federal Reserve Bank handles your state.

Key Takeaways

  • Paper bonds can be cashed at most banks and credit unions if you have an account there, usually the same day.
  • Digital bonds through TreasuryDirect are redeemed online and deposited to your bank account within one to three business days.
  • You need the bond itself (paper) or your TreasuryDirect login (digital), plus a photo ID to prove ownership.
  • Series EE and I bonds have a penalty if cashed before five years — you lose the last three months of interest.
  • If your bank refuses to cash a paper bond, the Federal Reserve Bank for your region will do it by mail.

Cashing a paper bond at a bank or credit union

Bring the physical bond, your photo ID, and your account information to any bank or credit union where you hold an account. The teller will verify the bond's serial number, check that it hasn't been reported lost or stolen, and confirm you're the registered owner. Most institutions cash bonds the same day, though some may take one to two business days to process.

You do not need to be a long-term customer — many banks will cash a bond for someone with a new account. However, some credit unions limit this service to members only, so call ahead if you're not sure. Bring your ID even if the teller knows you; it's a requirement for any bond redemption.

If the bond is registered to someone else, that person must be present with their ID, or you'll need a power of attorney document or a court order proving you have the right to cash it. Bonds registered to a minor require a parent or legal guardian to sign.

Redeeming a digital bond through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov, navigate to "Manage My Securities," and select the bond you want to redeem. Click "Redeem" and confirm the transaction. The Treasury will deposit the redemption amount to the bank account you linked when you opened your TreasuryDirect account.

The money typically arrives within one to three business days. You can redeem a partial amount of a bond if you don't want to cash the whole thing — the remaining balance stays in your account. There's no fee to redeem through TreasuryDirect, and you can do it any time during business hours.

What happens if you cash before the five-year mark

Series EE and I bonds carry a three-month interest penalty if redeemed before five years have passed. This means you forfeit the last three months of interest you've earned, not three months of the bond's face value. For example, if a bond has earned $120 in interest over three years, you lose $30 (three months' worth) when you cash it early.

Series HH bonds (no longer sold but still held by many people) have a six-month penalty instead. After five years, you can cash any bond with no penalty, though you'll still owe federal income tax on the interest earned.

Mailing a paper bond to the Federal Reserve

If your bank won't cash the bond, find the Federal Reserve Bank for your region using the Treasury's Savings Bond Wizard. Mail the bond, a completed FS Form 1522 (Request for Payment of Savings Bond), a copy of your photo ID, and a cover letter with your name and address to that Federal Reserve Bank.

Send it certified mail with return receipt so you have proof of delivery. Processing takes two to four weeks. The Federal Reserve will mail you a check to the address on file. Do not send the original bond by regular mail — always use certified mail with tracking.

Tax reporting when you redeem a bond

The interest you've earned on a savings bond is subject to federal income tax. You can report it all in the year you cash the bond, or you can report it annually as it accrues — whichever method you choose, you must stick with it for all your bonds. Most people wait until redemption to report it all at once.

The bank or Federal Reserve will not send you a 1099 form automatically. You're responsible for calculating the interest earned (the redemption amount minus what you paid for the bond) and reporting it on your tax return. If you redeemed a bond through TreasuryDirect, your account shows the purchase price and redemption amount, making the calculation straightforward.

What to do if you've lost the bond or can't find it

If you have a paper bond but can't locate it, you can file a claim with the Treasury. Complete FS Form 1048 (Claim for Lost, Stolen, or Destroyed Savings Bond) and mail it to the Bureau of the Fiscal Service. Include as much information as you have: the bond's series, denomination, approximate issue date, and serial number if you know it.

The Treasury will search its records to confirm the bond exists and hasn't already been cashed. If verified, they'll issue a replacement bond or pay you the redemption value. This process takes several weeks. For digital bonds in TreasuryDirect, contact the Treasury directly if you've lost access to your account — they can help you regain access or recover the bonds.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash a savings bond if you have an account with them. Some smaller institutions or credit unions may decline or limit this service to members only. Call ahead to confirm, or use the Treasury's Savings Bond Wizard to find a Federal Reserve Bank that will cash it by mail.

What if the bond is in someone else's name?

The registered owner must be present with a photo ID to cash it. If the owner is deceased, you'll need a death certificate and proof that you're authorized to handle their estate — usually a court document or letter of administration. Contact the bank or Federal Reserve for specific requirements.

How long does it take to get the money?

At a bank or credit union, you typically get cash or a check the same day. Through TreasuryDirect, the deposit takes one to three business days. By mail to the Federal Reserve, expect two to four weeks from the time they receive it.

Do I have to cash the whole bond?

With digital bonds through TreasuryDirect, you can redeem a partial amount and leave the rest in your account. Paper bonds must be cashed in full — you cannot split them.

What if I need the money before five years but want to avoid the penalty?

There's no way to avoid the three-month interest penalty on Series EE and I bonds before five years. You can only choose to accept it or keep the bond longer. After five years, you can cash with no penalty.