Where and how to redeem your savings bonds

You can redeem U.S. savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury's online system called TreasuryDirect. The method depends on what type of bond you own and whether you have the physical bond or a digital record.

If you own paper bonds, take them to any bank or credit union that offers savings bond redemption. Call ahead to confirm they handle this service — not every branch does. Bring the bonds themselves, a valid government-issued ID, and your Social Security number. The teller will verify the bonds are genuine, check that they have reached their minimum holding period, and pay you the current redemption value on the spot.

If your bonds are held in TreasuryDirect (the digital system), you log into your account online, select the bonds you want to cash, and the money goes into your linked bank account within one to two business days. You do not need to visit a physical location.

Key Takeaways

  • Paper bonds can be cashed at any bank or credit union that offers redemption services, while digital bonds held in TreasuryDirect are cashed through your online account.
  • Series EE and I bonds must be held for at least one year before you can redeem them, and redeeming before five years means losing the last three months of interest.
  • The redemption value is always the purchase price plus all accrued interest up to the redemption date — you cannot get less than what you paid.
  • You will receive a 1099-INT tax form in January for any interest earned, and that interest is subject to federal income tax but not state or local tax.

Minimum holding periods and interest penalties

Series EE bonds and Series I bonds cannot be redeemed during the first year you own them. If you try to cash one before that year is up, the bank or TreasuryDirect will refuse the transaction.

If you redeem a Series EE or I bond between one and five years after purchase, you lose the last three months of interest. For example, if you bought a bond 18 months ago and it has earned $50 in interest, you will receive the purchase price plus $37.50 (losing $12.50). After five years, you keep all accrued interest no matter when you redeem.

Series HH bonds and older Series H bonds have different rules. HH bonds must be held for five years to avoid a penalty, and they pay interest by check twice a year rather than accruing it on the bond itself. If you own these older bonds, ask the bank what the current redemption terms are, because rules for bonds issued decades ago sometimes differ.

What you need to bring to a bank

For paper bonds, bring the bonds themselves in their original condition. They do not need to be in perfect shape, but they should be readable — the serial number and issue date must be visible. Bring a valid government-issued photo ID (driver's license, passport, or state ID card) and know your Social Security number.

Some banks may ask you to sign the back of the bond in front of the teller. If the bond is registered to two people, both owners usually need to be present, though some banks allow one owner to redeem with a notarized power of attorney from the other. Call the specific branch beforehand to ask about their policy on co-owned bonds.

You do not need an account at that bank to redeem bonds there. Many people cash bonds at banks where they have never held an account.

Redeeming bonds held in TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the bonds you want to redeem. You can redeem all of them at once or choose specific bonds if you own multiple.

TreasuryDirect will show you the current redemption value before you confirm. Review this amount — it includes all interest earned through the redemption date. Once you confirm, the transaction cannot be undone, so double-check that you are redeeming the right bonds.

The money will be deposited into the bank account you linked to TreasuryDirect. This usually takes one to two business days. If you need to change which bank account receives the funds, you can update your linked account in your TreasuryDirect settings before you redeem.

Understanding the redemption value

The redemption value is always the original purchase price plus all interest earned from the issue date through the redemption date. You cannot redeem a bond for less than you paid for it, even if interest rates have fallen since you bought it.

For Series EE bonds, the interest accrues monthly and is added to the bond's value. You do not receive a check for the interest — it becomes part of what you get when you cash the bond. Series I bonds work the same way. The redemption value shown by the bank or TreasuryDirect is the total amount you will receive.

If you bought a $100 Series EE bond five years ago and it has earned $28 in interest, the redemption value is $128. That is what you will receive when you redeem it.

Tax reporting and what happens next

The interest you earn on savings bonds is subject to federal income tax. You will receive a Form 1099-INT in January of the year after you redeem the bonds, showing the interest amount. You report this on your federal tax return.

Savings bond interest is not subject to state or local income tax, even if you live in a state that taxes other types of interest income. This is one reason some people prefer savings bonds — the tax treatment is simpler.

You can choose to report the interest each year as it accrues, or wait and report it all when you redeem the bond. Most people wait until redemption because it is simpler. If you choose to report annually, you must do so consistently for all your bonds.

What to do if you cannot find your bonds or lost them

If you own paper bonds but cannot locate them, contact the Bureau of the Fiscal Service at savingsbonds.gov or call 1-800-553-2663. They maintain records of all bonds issued and can help you determine what happened to yours. If a bond was lost or destroyed, they can issue a replacement.

If you lost a bond and someone else finds it, they cannot redeem it without your signature and ID. Paper bonds are registered to a specific owner, so they have some built-in protection. The process to replace a lost bond takes several weeks, so start as soon as you realize it is missing.

If your bonds are in TreasuryDirect, they are not physical objects and cannot be lost. Your account is protected by your login credentials, so keep your password secure.

Frequently Asked Questions

Can I redeem just part of a bond?

No. Savings bonds are redeemed as whole units. You cannot cash in half a bond or a portion of its value. You either redeem the entire bond or keep it.

What if the bank says they cannot redeem my bonds?

Some smaller branches do not offer bond redemption services. Ask if another branch in the same bank system can do it, or try a different bank or credit union. You can always redeem through TreasuryDirect online if you have digital bonds, or contact the Bureau of the Fiscal Service for help with paper bonds.

Do I have to redeem all my bonds at once?

No. You can redeem some bonds and keep others. If you own multiple bonds, you choose which ones to cash and which to hold. In TreasuryDirect, you select individual bonds before confirming the transaction.

What if my bond has reached its final maturity date?

Series EE bonds stop earning interest after 30 years, and Series I bonds stop after 30 years as well. Once a bond reaches final maturity, you should redeem it because it is no longer earning anything. The bank or TreasuryDirect will tell you if a bond has matured.

Can someone else redeem my bonds if I give them permission?

For paper bonds, the registered owner must be present with ID to redeem them. A power of attorney or notarized permission is sometimes accepted, but policies vary by bank — call ahead. For TreasuryDirect bonds, only the account holder can log in and redeem them, unless you have set up authorized access for another person in your account settings.