Where to redeem your savings bonds

You can redeem savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether you have the physical bond or own it electronically.

If you hold a paper bond, walk into any bank or credit union where you have an account and ask to redeem it. Bring the bond itself, your ID, and your Social Security number. Most institutions will cash it on the spot, though some may need a day or two to process. If you don't have a bank account at that institution, some will still redeem it, but policies vary — call ahead.

If your bond is registered electronically through TreasuryDirect (the Treasury's online system), you redeem it entirely online. Log into your TreasuryDirect account, select the bond you want to cash, and request 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, usually the same day, as long as you bring the bond and your ID.
  • Electronic bonds held in TreasuryDirect are redeemed online and the money reaches your bank account in a few business days.
  • Series EE and I bonds have penalties if you cash them before five years have passed, so check your purchase date first.
  • The Treasury will not mail you a check for a paper bond — you must redeem it in person at a financial institution.

What happens if your bond is less than five years old

Series EE and Series I bonds carry an early redemption penalty if you cash them before five years from the issue date. The penalty is the last three months of interest — meaning you lose that interest and get back only the principal plus any interest earned before those final three months.

For example, if you bought a Series I bond two years ago and it has earned $50 in interest, you would get back your principal plus $37.50 (losing the equivalent of three months of interest). Series HH bonds and older savings bonds have different rules, so check the bond itself or call the Treasury's customer service line at 844-284-2676 to confirm what you hold.

If the bond has reached five years or more, there is no penalty — you get the full value with all interest earned.

Redeeming paper bonds at the bank

Bring the physical bond to the teller window along with a government-issued ID and your Social Security number. The teller will verify the bond's serial number and current value, then process the redemption. You will receive a check or deposit to your account, depending on the bank's process.

Some banks require that you have an account with them; others will cash bonds for non-customers but may charge a small fee. Call your bank first if you are unsure. If your bank declines, the next option is to mail the bond to the Treasury's Bureau of the Fiscal Service with a completed FS Form 1522 (Request for Redemption of United States Savings Bonds), but this takes several weeks and requires you to include a copy of your ID.

Redeeming bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "ManageDirect" section, find the bond you want to redeem, and select "Redeem." Confirm the redemption request and the system will process it.

The money will be deposited into the bank account you linked to your TreasuryDirect account. This usually takes three to five business days. You can redeem part of a bond or the entire amount — TreasuryDirect will split the value if you ask.

If you have lost access to your TreasuryDirect account, call the Treasury at 844-284-2676 and they can help you regain access or process a redemption request by phone.

What to do if you have lost the physical bond

If you own a paper bond but cannot find it, you can still redeem it — but the process is slower. Contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 with the bond's serial number (if you have it) and your Social Security number. They will verify that you own the bond and can issue a replacement or process a redemption directly.

If you do not have the serial number, provide the issue date, series, and denomination. The Treasury can usually locate the bond in their records. Expect this to take several weeks. In the meantime, if you need the money urgently, check whether the bond is registered in TreasuryDirect — if it is, you can redeem it online immediately.

Tax reporting when you redeem

The interest you earn on savings bonds is subject to federal income tax, but not state or local tax. You do not pay tax when you redeem the bond — you pay tax on the interest when you file your federal return for the year you cashed it.

The bank or Treasury will not send you a tax form automatically. You are responsible for reporting the interest as income. If you redeemed a bond, subtract what you originally paid for it from the amount you received; that difference is the taxable interest. Keep your redemption receipt and the bond's purchase documentation for your records.

Redeeming bonds held by a minor or in a trust

If the bond is registered in a child's name, a parent or legal guardian can redeem it at a bank by bringing the bond, the child's birth certificate or Social Security card, and the guardian's ID. Some banks require the child to be present; others do not. Call ahead to confirm the bank's policy.

If the bond is held in a trust or estate, the trustee or executor can redeem it, but they will need to provide documentation of their authority — typically a copy of the trust document or letters testamentary from the court. The bank will verify this before processing the redemption.

Frequently Asked Questions

Can I redeem only part of a savings bond?

Yes, but only if it is registered in TreasuryDirect. You can redeem a partial amount and leave the rest to continue earning interest. Paper bonds cannot be split — you must redeem the entire bond.

How long does it take to get the money after I redeem?

At a bank, usually the same day or within one business day. Through TreasuryDirect, three to five business days. By mail to the Treasury, four to six weeks.

What if the bank says they cannot redeem my bond?

Not all banks redeem savings bonds, particularly smaller branches. Ask to speak with a manager or try a different bank. You can always mail the bond to the Treasury's Bureau of the Fiscal Service with form FS 1522, though this takes longer.

Do I have to pay taxes when I redeem?

No, you pay taxes the following year when you file your federal return. The interest is taxable income, but you do not owe anything at the moment of redemption.

Can I redeem a bond that belongs to someone else?

Only if you are the registered owner, a legal guardian, or an authorized representative with power of attorney. The bank will verify ownership before processing any redemption.