Where to cash your savings bonds

You can cash in savings bonds at your bank, credit union, or the U.S. Treasury. Most banks and credit unions will cash them for free during business hours — you simply bring the bonds in person with a photo ID. If your bank won't cash them (some smaller institutions decline), the Treasury will always accept them by mail.

The Treasury's process is slower but reliable. You mail your bonds to the Bureau of the Fiscal Service with a form and a copy of your ID. Processing takes four to six weeks. The address and current mailing instructions are on treasurydirect.gov under "Redeem Savings Bonds by Mail." You can also redeem bonds through TreasuryDirect, the online account system, if the bonds were issued after 2003 and you have the serial numbers.

If you own paper bonds issued before 2003, you cannot redeem them online — you must use a bank or mail them to the Treasury. If you own bonds in a TreasuryDirect account (digital bonds), you can redeem them instantly through your account dashboard.

Key Takeaways

  • Banks and credit unions cash savings bonds in person for free, usually the same day, if you bring the bond and a photo ID.
  • The U.S. Treasury will redeem bonds by mail if your bank refuses, though the process takes four to six weeks.
  • Series EE and I bonds issued after 2003 can be redeemed through your TreasuryDirect account instantly if you have the serial numbers.
  • You will owe federal income tax on the interest your bond earned, but not state or local tax, and you report it in the year you cash it in.
  • Cashing in a Series I bond before five years have passed costs you the last three months of interest as a penalty.

What documents you need to bring

For in-person redemption at a bank or credit union, bring the physical bond itself and a photo ID (driver's license, passport, or state ID card). The teller will verify the bond is genuine, check that it has matured or that you are the registered owner, and process the cash or deposit on the spot.

If you are redeeming a bond registered to someone else (a parent, grandparent, or spouse), you will need that person present with their ID, or you will need a power of attorney document signed by them. Some banks require a notarized power of attorney; others accept a simple signed letter. Call your bank first to ask what they need.

For mail redemption through the Treasury, you need the bond itself, a completed Form PD 1522 (Request to Redeem Series EE and Series I Savings Bonds), a photocopy of your ID, and a return address. The Treasury website has the form and detailed instructions.

How interest is taxed when you redeem

The interest your bond earned is subject to federal income tax in the year you cash it in. You do not owe state or local tax on savings bond interest — that is a federal-only tax. The bank or Treasury will not withhold tax automatically; you will owe it when you file your tax return.

If you cashed in bonds in a previous year and did not report the interest, you can still file an amended return. The IRS does not typically pursue individual bond holders for small amounts, but it is better to report it correctly. If you have questions about how much interest you earned, the Treasury can provide a statement of your bond holdings and their values.

One exception: if you used the bond proceeds to pay for may have access to education expenses in the same year, you may be able to exclude the interest from your taxable income under the Education Savings Bond Program. This applies only to Series EE and I bonds issued after 1989, and only if your income is below a certain threshold (the limit changes yearly). You will need to file Form 8815 with your tax return to claim this.

Penalties for cashing in early

Series EE bonds have no early-redemption penalty — you can cash them in anytime after you own them, though they earn interest for 30 years. Series I bonds, by contrast, have a three-month interest penalty if you redeem them before five years have passed. That means if you cash in an I bond at year three, you lose the interest from months 10 through 12 of that year.

Series HH bonds (issued before 2004) cannot be redeemed early at all — you must hold them until maturity or let them stop earning interest. If you own HH bonds, your bank can tell you the maturity date.

The penalty applies only to I bonds. If you need the money before five years are up, Series EE bonds are the better choice because there is no cost to redeeming them early.

Redeeming bonds registered to a minor

If a bond is registered in a child's name, the parent or legal guardian can redeem it on the child's behalf. Bring the bond, your ID, and the child's birth certificate or Social Security card to prove the relationship. The bank will deposit the funds into an account in the child's name, or you can ask to deposit it into a parent-owned account if the bank allows it — policies vary.

If the bond is registered to the child and a co-owner (usually a parent), either owner can redeem it alone. If it is registered to the child only, the parent cannot redeem it without legal guardianship documentation.

The interest earned on a bond owned by a minor is taxable to the minor in the year it is redeemed. If the child has little or no other income, the interest may not be taxable at all, depending on the standard deduction for that year. Consult a tax professional if the bond earned a large amount of interest.

What to do if you lost the bond or cannot find it

If you lost a paper bond or cannot locate it, contact the Treasury directly. You will need to provide the bond series, denomination, and the issue date if you have it. The Treasury keeps records of all bonds issued and can search for yours by your Social Security number and name.

If the bond is found in the Treasury's records, they can issue a replacement or process a redemption without the physical bond. This process takes longer than a standard redemption — typically eight to twelve weeks — because the Treasury must verify your ownership and ensure the bond has not already been cashed.

Keep documentation of any bonds you own: the issue date, series, denomination, and serial number if visible. A simple spreadsheet or list stored safely at home or with important papers makes the redemption process much faster if you ever need to cash them in.

Cashing in bonds from an estate or inherited bonds

If you inherited savings bonds from someone who has died, you can redeem them, but the process depends on whether the bond names you as a co-owner or beneficiary, or whether it is still in the deceased person's name only.

If you are named as a co-owner or beneficiary on the bond, you can redeem it like any other bond — bring it to a bank with your ID. If the bond is in the deceased person's name only, you will need to provide a death certificate and proof that you have the legal right to the funds (such as letters testamentary from the probate court, or a copy of the will if the estate is small enough to avoid probate). Requirements vary by state and by bank.

The interest earned on an inherited bond is taxable to the estate or to you, depending on when the bond is redeemed and how the estate is structured. A tax professional or estate attorney can advise you on the tax treatment.

Frequently Asked Questions

Can I cash in a savings bond before it matures?

Yes. Series EE bonds can be redeemed anytime with no penalty. Series I bonds can be redeemed anytime, but if you redeem before five years have passed, you lose the last three months of interest. Series HH bonds cannot be redeemed early. Check your bond's series to know which rule applies.

What if my bank says they won't cash my savings bond?

Some banks, especially small ones, do not cash savings bonds. You can try another bank or credit union in your area, or mail the bond to the U.S. Treasury with Form PD 1522. The Treasury will always redeem it, though it takes four to six weeks.

Do I have to report the interest when I cash in the bond?

Yes. The interest is federal taxable income in the year you redeem the bond. You report it on your tax return. You do not owe state or local tax on it. If you used the proceeds for education expenses, you may be able to exclude the interest under the Education Savings Bond Program, but you must file Form 8815 to claim it.

How do I know how much interest my bond earned?

The Treasury website has a savings bond value calculator where you can enter your bond's series, denomination, and issue date to see its current value. You can also contact the Treasury directly, or ask your bank when you bring the bond in — they can often look up the value for you.

What happens if I cash in a bond and then find out I needed it for something else?

Once a bond is redeemed, it cannot be reversed. The funds are yours to use. If you think you might need the money later, consider keeping the bond until you are certain, especially if it is a Series I bond (where early redemption costs you interest).