Where to cash your savings bond

You can cash a U.S. savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. Banks are the fastest option if you have an account there — many will cash bonds over the counter the same day. Credit unions often do the same, though some require membership. If your bank declines (which happens occasionally with older bonds), the Treasury will cash it by mail, though the process takes one to two weeks.

The Treasury's savings bond program is run through TreasuryDirect, their online platform. You can redeem electronic bonds (those you bought after 2002) directly on TreasuryDirect without visiting a bank. Paper bonds must go through a bank or be mailed to the Treasury.

Key Takeaways

  • Paper bonds can be cashed at most banks and credit unions, or mailed to the Treasury; electronic bonds can be redeemed directly on TreasuryDirect.
  • You will need the bond itself (for paper bonds) or your TreasuryDirect login (for electronic bonds), plus a valid ID to prove ownership.
  • Banks typically cash bonds the same day, while the Treasury takes one to two weeks by mail.
  • Savings bonds cannot be cashed before the issue date, and cashing before the five-year mark means you lose the last three months of interest.

What you need to bring to a bank

For a paper bond, bring the physical bond certificate and a government-issued photo ID. The bank will verify that your name matches the bond's registered owner. If the bond is registered to two people and both names are on it with "or" between them, either person can cash it alone. If it says "and," both owners must be present.

Some banks may ask for your Social Security number or account number with them, even if you do not have an account there. A few larger banks have started requiring customers to have an account before they will cash bonds, so call ahead if you are unsure. Smaller community banks and credit unions are usually more flexible.

How to redeem an electronic bond on TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov. Navigate to "Manage My Securities" and select the bond you want to redeem. Click "Redeem" and confirm the amount. The money will be deposited into the bank account you have linked to your TreasuryDirect profile within one to two business days.

You cannot redeem an electronic bond before its issue date. If you try to redeem before the bond has matured (reached its final maturity date), the system will show you the penalty: you will forfeit the last three months of interest. The amount you receive will be the bond's current value minus that penalty.

Penalties for cashing before five years

Savings bonds have a five-year holding period. If you cash a bond before five years have passed since the issue date, you lose the last three months of interest. This is not a fee — it is simply that the interest stops accruing three months before you redeem it.

After five years, you can cash the bond at any time without penalty. The bond will continue to earn interest for up to 30 years (for Series EE bonds) or 30 years (for Series I bonds), so holding longer means more interest, but there is no penalty for cashing early once the five-year window closes.

What happens if the bond is registered to a deceased person

If you are the beneficiary or executor of an estate and need to cash a bond registered to someone who has died, you cannot use a bank. You must mail the bond to the Treasury along with a certified copy of the death certificate and proof of your authority (such as letters testamentary or a court order naming you executor). Include a letter explaining your relationship to the deceased.

Mail these documents to the Bureau of the Fiscal Service, Parkersburg, WV 26106-1328. Include a return address and phone number. The Treasury will verify the documents, which typically takes four to six weeks, and then send you a check for the bond's current value.

Cashing a bond you found or inherited without clear ownership

If a bond has no name on it, or the name is illegible, or you inherited it but are not sure whether you are the registered owner, do not attempt to cash it at a bank. Contact the Treasury directly. You can call the BondHelp line at 844-284-2676 (Monday through Friday, 8 a.m. to 5 p.m. Eastern time) or mail the bond with a letter explaining the situation to the Bureau of the Fiscal Service at the address above.

Bring any documentation you have — the will, a letter from the previous owner, or a family record showing the bond was meant for you. The Treasury will research the bond's history and tell you whether it can be redeemed and to whom.

Tax reporting when you cash a bond

The interest you earn on a savings bond is subject to federal income tax. When you cash the bond, the bank or Treasury does not automatically report it to the IRS — that is your responsibility. You will owe tax on all the interest the bond earned from the issue date to the redemption date, even if you held it for decades.

Keep the receipt or confirmation from the bank or TreasuryDirect showing the amount you received and the date. When you file your tax return, you will report the interest as income. If the bond earned more than $10 in interest, you may receive a Form 1099-INT from the financial institution where you cashed it, but this is not may provide. Either way, you are responsible for reporting the income.

Frequently Asked Questions

Can I cash a savings bond before the issue date?

No. A bond cannot be redeemed before its issue date, which is printed on the certificate. If you try to redeem early on TreasuryDirect, the system will block the transaction. A bank will refuse to cash it as well.

What if my bank refuses to cash my bond?

Some banks, especially large national chains, have stopped cashing savings bonds for non-customers. If this happens, try a local credit union or community bank. If no bank will cash it, mail the bond to the Bureau of the Fiscal Service, Parkersburg, WV 26106-1328, with a letter requesting redemption. Include your name, address, and phone number.

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

Yes. The interest is subject to federal income tax. You report it on your tax return for the year you cash the bond. Some states also tax savings bond interest, so check your state's rules. You are responsible for reporting it even if you do not receive a Form 1099-INT.

What if the bond is in two names but one person has died?

If the bond says "or" between the names, the surviving owner can cash it alone with a death certificate and ID. If it says "and," you will need to go through the Treasury with a death certificate and proof of your authority as executor or beneficiary.

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

The money is deposited into your linked bank account within one to two business days. If you cash a paper bond at a bank, you usually get the money the same day or the next business day, depending on the bank's processing time.