Where to cash paper bonds depends on the amount and where you bank

You can cash paper savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury if your bank refuses. Banks will cash them during business hours without an appointment, though some have limits on how many bonds they will redeem in one day. If your bank declines, the Treasury's Retail Securities Site lets you mail bonds in, and some Federal Reserve Banks accept them in person.

The simplest route is usually your own bank or credit union, since they already have your account information and can deposit the proceeds directly. Call ahead if you are cashing more than a few bonds or if you have not banked there long, because some institutions require a minimum relationship length or charge a small fee for bonds they did not issue.

Key Takeaways

  • Most banks and credit unions will cash paper bonds during regular business hours without requiring an appointment, though some have daily limits.
  • You need the bond itself, a valid photo ID, and your Social Security number or tax ID to cash a bond at a bank.
  • If your bank refuses to cash a bond, you can mail it to the Treasury's Retail Securities Site or visit a Federal Reserve Bank in person.
  • The Treasury will not cash bonds by phone or email, and processing by mail typically takes two to four weeks after they receive your package.
  • Interest stops accruing on the date you cash the bond, so timing matters if you are close to a rate-increase date.

What you need to bring to the bank

Bring the physical bond certificate, a valid photo ID (driver's license, passport, or state ID), and know your Social Security number. The bank will ask you to sign the back of the bond in front of a teller, and they will verify your ID matches the name on the bond. If the bond is registered to someone else, that person must be present to sign it, or you will need a power of attorney document.

If you have lost the bond certificate itself, you cannot cash it at a bank. Instead, you will need to file a claim with the Treasury for a replacement, which takes several weeks. Keep the physical bond in a safe place — a home safe, safe deposit box, or fireproof container — until you are ready to cash it.

Cashing bonds directly through the Treasury

The Treasury's Retail Securities Site (treasurydirect.gov) does not let you cash bonds online, but you can mail them in. Go to the "Manage Securities" section, select "Redeem Securities," and print the form they provide. Include the bond certificate, a copy of your ID, and a letter stating the amount you want to redeem. Mail everything to the address on the form.

Processing takes two to four weeks after the Treasury receives your package. They will mail you a check or deposit the funds directly to a bank account if you set that up in advance. This route is slower than a bank but useful if your local bank refuses to cash the bond or if you prefer not to visit in person.

Federal Reserve Banks and in-person redemption

Some Federal Reserve Banks accept paper bond redemptions in person during business hours. Call your regional Federal Reserve Bank to confirm they offer this service and whether you need an appointment. You will need the bond, a valid photo ID, and your Social Security number, just as you would at a commercial bank.

Federal Reserve locations are in major cities: Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco. If you live near one and prefer to redeem in person rather than mail bonds or visit your bank, this is a straightforward option.

When interest stops and how to time your redemption

Interest on a paper savings bond stops accruing on the date you cash it. Series EE bonds earn interest for 30 years, and Series I bonds earn interest for 30 years as well. If you cash a bond before the next interest-accrual date, you lose the interest that would have been added on that date.

Paper bonds typically accrue interest on the first and fifteenth of each month. If you are close to one of those dates and the bond is still earning at a decent rate, waiting a few days to cash it can add a small amount to your redemption value. Check your bond's issue date and maturity schedule to see when the next accrual date falls.

Tax reporting when you cash a bond

The interest you earned on a savings bond is subject to federal income tax. You can report it in the year you cash the bond, or you can report it each year as it accrues (though most people wait until redemption). The bank or Treasury will not send you a tax form automatically — you are responsible for reporting the interest on your tax return.

To calculate the interest, subtract the purchase price from the redemption value. If you bought a Series EE bond for $50 and cashed it for $87, the interest is $37. Keep the bond certificate or a photo of it for your records in case you are audited. State income tax treatment varies: some states tax savings bond interest, and others do not, so check your state's rules.

What to do if your bank refuses to cash the bond

Some banks decline to cash bonds they did not issue, or they may have a policy against cashing bonds for non-customers. If your bank refuses, ask them in writing why they declined — some have legitimate limits on the number of bonds per day or require a minimum account age. If the refusal is a blanket policy, move to your next option: mail the bond to the Treasury or visit a Federal Reserve Bank.

You can also try a different bank or credit union in your area. Larger banks and credit unions are more likely to have the systems in place to handle bond redemptions. If you are a member of a credit union, start there — many credit unions are more flexible than banks about cashing bonds from other institutions.

Frequently Asked Questions

Can I cash a paper bond at any bank, or only the one that issued it?

Most banks will cash bonds they did not issue, but some have policies against it or limits on how many they will redeem per day. Your own bank is the safest bet. If they refuse, try another bank, a credit union, or the Treasury by mail.

What happens if I cash a bond before it matures?

You can cash a paper savings bond anytime after it has been held for one year. If you cash it before five years have passed, you lose the last three months of interest as a penalty. After five years, there is no penalty, and you receive the full current value.

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

Yes. The interest is taxable federal income in the year you cash the bond (or the year it accrues, if you choose to report annually). You report it on your tax return. The bank or Treasury will not send you a form, so keep your bond certificate for your records.

How long does it take to get the money if I mail the bond to the Treasury?

The Treasury typically processes mailed redemptions in two to four weeks after they receive your package. Mail takes time both ways, so plan for four to six weeks total from when you send it. If you need the money faster, cashing at a bank or Federal Reserve Bank is quicker.

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

No. The person whose name is on the bond must sign it in front of the teller or notary. If you cannot cash it yourself, you can grant power of attorney, but that requires a legal document and is more complex than simply cashing it in person.