Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, even if you don't have an account there. Walk in with the bond itself and a valid photo ID. The teller will verify the bond's serial number, check that it has reached its final maturity date (or that you're past the minimum holding period), and process the redemption on the spot. Most banks cash bonds the same day.

If you prefer not to visit a branch, you can mail the bond directly to the U.S. Department of the Treasury's Bureau of the Fiscal Service. Send it with a completed FS Form 1522 (for Series EE and I bonds) or FS Form 1523 (for Series HH bonds) to the address listed on the form. The Treasury will mail you a check, which typically arrives within four weeks. This route is slower but works if no bank near you will cash it.

Some employers and credit unions also offer payroll deduction programs where you can redeem bonds through them, though this is less common than it once was. Call your HR department or credit union to ask whether they offer this service.

Key Takeaways

  • You can cash Series EE and I bonds at any bank or credit union with your bond and a photo ID, and most will process it the same day.
  • Series EE bonds must be held for at least one year before you can cash them, and Series I bonds must be held for at least one year as well.
  • If you cash a Series I bond before five years have passed, you lose the last three months of interest as a penalty.
  • You can mail bonds directly to the Treasury's Bureau of the Fiscal Service with the correct form if no bank will cash them in person.
  • The bank or Treasury will issue a check in your name; you cannot receive cash or have the money deposited to someone else's account.

Minimum holding periods and early redemption penalties

Series EE bonds and Series I bonds both require you to hold them for at least one year before you can cash them at all. If you try to redeem before that year is up, the bank will refuse. This is a hard rule with no exceptions.

If you cash a Series I bond before five years have passed, you forfeit the last three months of interest. So if you've held the bond for two years, you lose three months' worth of earnings. This penalty does not apply to Series EE bonds, which have no early-redemption penalty—you can cash them anytime after the first year and receive all accrued interest.

Series HH bonds, which are no longer sold but are still held by many people, have their own rules: they mature in 20 years, and you cannot redeem them before maturity except under specific hardship circumstances. If you own HH bonds, contact the Treasury directly to discuss your situation.

What happens to the interest when you cash

When you redeem a savings bond, you receive the full face value plus all accrued interest up to the redemption date. The interest is added to the check amount automatically—you don't have to calculate it yourself. The bank or Treasury handles this.

The interest you receive is subject to federal income tax, but not state or local income tax. You'll receive a Form 1099-INT from the financial institution that cashed the bond, showing the interest amount. You must report this on your federal tax return for the year you cashed the bond. If you held the bond for many years, the interest could be substantial, so factor this into your tax planning.

Cashing bonds owned by a minor or in a trust

If a bond is registered in a child's name, the parent or legal guardian can cash it by presenting the bond, their own photo ID, and proof of guardianship (such as a birth certificate). The bank will issue the check in the child's name, and the parent can deposit it into a custodial account or their own account if they are the custodian.

If a bond is held in a trust, the trustee can redeem it by presenting the bond, their photo ID, and a copy of the trust document. Some banks may ask for additional documentation, so call ahead to confirm what they need. If the trust is complex or the bank refuses, the Treasury will cash it by mail with the proper forms.

What to bring to the bank

Bring the physical bond certificate itself and a valid photo ID—a driver's license, passport, or state ID card. The bond must be in your possession; you cannot cash someone else's bond even if they give you permission, unless you are the registered co-owner or the legal guardian.

If you've lost the bond certificate, you cannot cash it at a bank. Instead, contact the Treasury's Bureau of the Fiscal Service directly. You'll need to file a claim for a lost or destroyed bond, which requires proof of ownership (such as purchase records or bank statements showing the purchase) and a completed form. This process takes several months.

Replacing a lost or destroyed bond

If your bond is lost, stolen, or destroyed, you can request a replacement from the Treasury. You'll need to complete FS Form 1048 (Claim for Lost, Stolen, or Destroyed Savings Bond) and submit it along with proof that you owned the bond. Acceptable proof includes purchase confirmations, bank statements, or correspondence from the Treasury showing the bond's serial number.

Mail the form and supporting documents to the Bureau of the Fiscal Service at the address on the form. The Treasury will investigate your claim, which can take several months. Once approved, they will issue a replacement bond or, if the original has matured, send you a check for the redemption value.

Tax reporting and what to expect on your return

The financial institution that cashes your bond will issue a Form 1099-INT showing the interest earned. You must report this interest as income on your federal tax return. If you cashed multiple bonds in the same year, you may receive multiple 1099-INT forms, and you'll report the total interest on your return.

Some people choose to report the interest in the year the bond was purchased rather than the year it was cashed, which can spread the tax liability over time. This requires filing Form 8818 with your tax return. Consult a tax professional if you have a large bond redemption and want to explore this option.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but some smaller institutions may decline. Call ahead to confirm. If a bank refuses, the Treasury will cash it by mail, though this takes longer.

What if I don't have the physical bond certificate?

You cannot cash a bond without the certificate. Contact the Treasury to file a claim for a lost or destroyed bond. You'll need proof of ownership, and the process takes several months.

Do I have to pay taxes on the interest from a savings bond?

Yes, the interest is subject to federal income tax. You'll receive a Form 1099-INT showing the amount, which you report on your tax return. State and local taxes do not apply to savings bond interest.

Can I cash someone else's savings bond?

No, unless you are the registered co-owner or the legal guardian of a minor. The bank will verify the name on the bond matches your ID.

How long does it take to get the money after I cash a bond?

At a bank, you receive a check the same day. If you mail the bond to the Treasury, expect four weeks for the check to arrive.