Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, even if you do not have an account there. Walk in with the bond itself and a valid photo ID. The teller will verify the bond's serial number, confirm you are the owner or an authorized representative, and process the redemption on the spot — usually within minutes.

If you cannot visit a bank in person, you can mail the bond to the U.S. Department of the Treasury's Bureau of the Fiscal Service. Include a letter stating your intent to redeem, sign the back of the bond in front of a witness (a notary public or bank officer), and mail both to the address listed on the Treasury website. Processing by mail takes several weeks.

Some employers offer payroll deduction programs for Series I and EE bonds. If you bought through that program, you may also redeem through your employer's benefits administrator, though this is less common than bank redemption.

Key Takeaways

  • Most banks and credit unions will cash your savings bond in person without requiring an account, and you will receive payment the same day.
  • You must present the physical bond and a valid photo ID; the teller will verify ownership before processing the redemption.
  • If you mail the bond to the Treasury, you must have your signature witnessed by a notary public or bank officer and allow several weeks for processing.
  • Series EE bonds purchased before five years have passed will incur a penalty of the last three months of interest, but older bonds have no penalty.
  • The Treasury will send you a check by mail; direct deposit to a bank account is not an option for bond redemptions.

Penalties for cashing before maturity

Series EE and Series I bonds carry a three-month interest penalty if you redeem them before five years have passed since purchase. This means the Treasury will withhold three months' worth of the interest you earned and keep it. For example, if a bond earned $40 in interest over two years and you cash it, you lose $10 (three months of that $40) and receive $30 instead.

After five years, there is no penalty. You receive all interest earned, no matter when you redeem. Series HH bonds (no longer sold but still held by some people) have different rules: they pay interest by check twice a year and do not have an early redemption penalty, but they mature after 20 years.

The penalty applies only to the interest portion of the bond's value. You always receive the full face value you paid for the bond itself.

What happens to the interest you earned

When you redeem a savings bond, you receive the face value plus all accrued interest (minus any early redemption penalty). The Treasury calculates interest monthly, so the exact amount depends on the redemption date. A bond purchased for $50 that earned $8 in interest will pay you $58 at redemption (or $55 if you redeem before five years and owe the three-month penalty).

The interest is taxable income in the year you redeem the bond. The bank or Treasury will not withhold federal income tax automatically — you are responsible for reporting it on your tax return. If you have been deferring taxes on the bond (which is allowed), you must report all accumulated interest in the year of redemption.

Redeeming bonds held in someone else's name

If you are the named owner of a bond, you can redeem it yourself with your photo ID. If you are redeeming a bond owned by someone else — such as a deceased parent's bond or a bond held in trust — you will need to prove your authority to do so.

For a deceased owner's bond, bring a certified copy of the death certificate and documentation showing you are the executor, beneficiary, or legal heir. The bank may require additional paperwork depending on the bond's registration and your relationship to the deceased.

For a bond held in a custodial account (such as a parent holding a bond for a minor child), the custodian can redeem it. Once the child reaches the age of majority, they become the owner and can redeem it themselves.

Redeeming bonds purchased through TreasuryDirect

If you bought your savings bond through TreasuryDirect (the Treasury's online platform), you do not have a physical bond certificate. Instead, the bond exists as a digital record in your TreasuryDirect account. To redeem it, log into your account, select the bond, and request redemption. The Treasury will deposit the funds into the bank account you have on file, usually within two business days.

You cannot take a TreasuryDirect bond to a bank for in-person redemption because there is no physical certificate to present. You must use the online system. If you have forgotten your TreasuryDirect login, you can reset it through the website using your Social Security number and email address.

Getting a replacement if your bond is lost or damaged

If your physical savings bond is lost, stolen, or too damaged to redeem, you can request a replacement from the Treasury. Contact the Bureau of the Fiscal Service with the bond's serial number, the date of purchase, and the face value. They will verify the bond in their records and issue a replacement certificate, which you can then redeem at a bank.

If you do not have the serial number, provide as much information as you can: the series (EE, I, HH), the issue date, and the purchase price. The Treasury may take longer to process the request if information is incomplete, but they can usually locate the bond in their system.

There is no fee for a replacement bond. Processing typically takes four to six weeks by mail.

Tax reporting when you redeem

The interest you earn on a savings bond is subject to federal income tax but exempt from state and local income tax. When you redeem the bond, you must report the interest as income on your federal tax return for that year.

The Treasury does not issue a 1099 form for savings bond redemptions. You are responsible for tracking the interest earned and reporting it yourself. If you have owned the bond for many years, the interest may be substantial — check your TreasuryDirect account or contact the Treasury to find out how much interest has accrued before you redeem.

If you redeemed bonds in a prior year and did not report the interest, you can file an amended return. The IRS has a statute of limitations, but reporting the income sooner rather than later is advisable.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but policies vary. Call ahead or ask the teller when you arrive. Some smaller institutions may decline or ask you to have an account with them. If your bank refuses, the Treasury will always redeem it by mail.

What if I lost the bond certificate but remember buying it?

Contact the Bureau of the Fiscal Service with whatever information you have: the series, approximate purchase date, and amount. They can search their records and issue a replacement. If you bought through TreasuryDirect, log into your account — the bond is still there digitally and you can redeem it online.

Do I have to pay taxes on the interest right away?

No. You report the interest as income on your tax return for the year you redeem the bond. If you have not redeemed it yet, you do not owe taxes on the interest until you do. This is one reason some people hold bonds for decades — they defer the tax bill until redemption.

Can someone else cash my bond if I give them permission?

No. The person presenting the bond must be the registered owner or have legal authority (such as power of attorney or executor status). A simple letter of permission is not enough. If you want someone else to handle the redemption, you will need to set up formal legal authority beforehand.

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

In-person redemption at a bank is immediate — you walk out with a check or deposit the funds that day. TreasuryDirect redemptions take one to two business days for the deposit to appear in your bank account. Mail redemptions to the Treasury take four to six weeks.