Where to cash your savings bonds

You can cash US savings bonds at most banks and credit unions, or directly through the US Department of the Treasury if you own them electronically. The easiest route for most people is their own bank — walk in with the bond and your ID, and they will process it on the spot. If your bank declines (some smaller institutions do not handle bonds), ask for a referral to another branch or a nearby bank that does.

If you own electronic bonds through TreasuryDirect, you do not have a physical certificate to bring anywhere. Instead, you log into your TreasuryDirect account online, select the bond you want to redeem, and request the cash transfer to your linked bank account. The money typically arrives within one to three business days.

Paper bonds can also be cashed by mail if you cannot reach a bank in person. You send the bond and a form to the Federal Reserve Bank in your region, along with a copy of your ID. This method takes longer — usually two to four weeks — because the bond has to travel and be processed by hand.

Key Takeaways

  • Most banks and credit unions will cash your savings bond on the spot if you bring the physical certificate and a government-issued ID.
  • Electronic bonds held in TreasuryDirect are cashed by logging into your account online and requesting a transfer to your bank account.
  • You must own the bond or be listed as a co-owner; a parent cannot cash a bond registered only in a child's name without legal authority.
  • Savings bonds redeemed before five years have passed incur a penalty of the last three months of interest, so check your purchase date first.
  • The bank or Treasury will report the interest you earned to the IRS on a Form 1099-INT, and you will owe federal income tax on that interest.

What you need to bring to the bank

Bring the physical bond certificate itself and a government-issued photo ID — a driver's license, passport, or state ID card. The bank needs to see the bond to verify the series, denomination, and serial number, and they need your ID to confirm you are who you claim to be.

If you are cashing a bond that is registered in someone else's name but you are listed as a co-owner, bring both your ID and documentation showing you are authorized to redeem it. If you are the executor of an estate or have power of attorney, bring the relevant legal documents along with your ID. A bank will not cash a bond for you based on your word alone that you have the right to do so.

If you have lost the physical certificate, you can request a replacement from the Treasury, but this adds weeks to the process. Contact the Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov to start a replacement claim.

Early redemption penalties and the five-year rule

Series EE and Series I bonds — the two most common types — cannot be cashed for the first year you own them. If you redeem them between year one and year five, you lose the last three months of interest. After five years, you can cash them without penalty.

This penalty is automatic and applies regardless of why you need the money. If you bought a bond two years ago and need cash now, the bank will deduct three months of interest from what you receive. The bond will still be worth more than you paid for it (because you earned interest), but you will not get the full amount you would have if you had waited.

Check your bond's issue date before you go to the bank. The date is printed on the certificate or visible in your TreasuryDirect account. If you are within the five-year window, calculate whether the penalty is worth it — sometimes it is, sometimes it is not.

How the bank processes your redemption

When you hand the bond to a bank teller, they will examine it for authenticity, record the series and serial number, and look up the current redemption value. This value depends on the bond type and how long you have held it. For Series I bonds, the redemption value changes every six months based on inflation rates set by the Treasury.

The teller will then deduct any applicable early-redemption penalty (if you are within five years) and calculate the net amount you receive. They will ask how you want the money — as cash, a check, or a deposit to your account. Most people choose a check or deposit because carrying large amounts of cash is inconvenient and risky.

The bank will give you a receipt showing the bond's serial number, the redemption value, any penalty applied, and the amount paid to you. Keep this receipt for your records and for tax purposes.

Tax reporting and what you owe the IRS

The interest you earned on the bond is subject to federal income tax. You do not pay tax when you redeem the bond — you pay it when you file your tax return for the year you cashed it. The bank or Treasury will send you a Form 1099-INT in January showing the interest amount, and you will report this on your tax return.

State and local income taxes vary by location. Some states do not tax savings bond interest at all; others tax it like any other income. Check your state's rules or ask a tax preparer if you are unsure.

If you have held the bond for many years, the interest can be substantial. A Series EE bond purchased 20 years ago might have earned thousands of dollars in interest. That entire amount is taxable income in the year you redeem it, which could push you into a higher tax bracket. Some people spread redemptions across multiple years to manage their tax burden, though this requires planning ahead.

Cashing bonds registered to a minor

If a bond is registered in a child's name only, a parent or guardian cannot cash it without legal authority. The child must be present and sign the redemption form, or you must have a power of attorney or guardianship document that explicitly authorizes you to handle the bond.

If the child is old enough to understand what they are signing (usually age 18 or older), they can go to the bank with you and sign the redemption form themselves. If the child is younger, you will need legal documentation. Contact the bank ahead of time to ask what they require — different banks have different policies.

If the bond is registered in both the parent's and child's names as co-owners, the parent can usually redeem it without the child present, though the bank may ask for documentation showing the co-ownership.

What happens if you cannot find your bond

If you own a paper bond but cannot locate the physical certificate, you can request a replacement from the Treasury. Call the Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov and select "Replace a Lost or Stolen Security." You will need to provide the bond's series, denomination, and issue date if you remember them, or the Treasury can search their records using your Social Security number.

The replacement process takes several weeks and requires you to sign an affidavit stating that the bond is lost. Once the Treasury issues a replacement certificate, you can take it to a bank to redeem it. If you own electronic bonds in TreasuryDirect, there is no physical certificate to lose — your bonds exist only in the Treasury's computer system, so you cannot misplace them.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but not all. Some smaller institutions do not handle them. Call ahead or ask the teller when you arrive. If your bank declines, they can usually refer you to a nearby bank that does, or you can mail the bond to the Federal Reserve.

What if I lost the bond certificate?

Contact the Bureau of the Fiscal Service at 844-284-2676 to request a replacement. You will need to provide identifying information and sign an affidavit. The replacement takes several weeks, but once you receive it, you can cash it at a bank. Electronic bonds cannot be lost because they exist only in your TreasuryDirect account.

Do I have to pay taxes on the interest when I cash the bond?

You do not pay taxes at the moment of redemption, but you owe federal income tax on the interest in the year you cash the bond. The bank or Treasury will send you a Form 1099-INT showing the interest amount. State taxes vary by location.

What if the bond is in my child's name only?

You cannot cash it without the child's signature or legal authority. If the child is 18 or older, they can sign the redemption form. If younger, you will need a power of attorney or guardianship document. Ask the bank what they require before you attempt to redeem it.

How long does it take to get my money after I redeem a bond?

At a bank, you receive the money immediately (as cash or a check). If you redeem an electronic bond through TreasuryDirect, the transfer to your bank account takes one to three business days. Mailing a paper bond to the Federal Reserve takes two to four weeks.