Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, even if you did not buy it there. Bring the bond itself (the physical certificate or a printed confirmation if it is electronic), your ID, and your Social Security number. The teller will verify the bond's serial number in the Treasury system and process the redemption on the spot — most banks do this without charge, though a few may ask for a small fee.

If you do not have a bank account or prefer not to visit a branch, you can redeem Series EE and Series I bonds directly through TreasuryDirect, the U.S. Department of the Treasury's online platform. Log in with your account credentials, select the bond you want to redeem, and the funds transfer to your linked bank account within one to three business days. You cannot redeem paper bonds through TreasuryDirect; those must go to a bank or the Federal Reserve.

Paper bonds can also be redeemed at a Federal Reserve Bank if your local bank refuses. Call the Federal Reserve's main office in your region to ask about their process — some require mail-in submission, others accept in-person visits by appointment.

Key Takeaways

  • Most banks and credit unions will cash your savings bond for free, and you do not need to be a customer there.
  • Electronic bonds bought through TreasuryDirect can be redeemed online and the money reaches your bank account in one to three business days.
  • Paper bonds must be cashed at a bank, credit union, or Federal Reserve Bank — you cannot redeem them online.
  • You need the bond itself (or proof of ownership for electronic bonds), a valid ID, and your Social Security number.
  • Savings bonds can only be redeemed after they have been held for one year; cashing one before that forfeits the last three months of interest.

The one-year holding requirement and early redemption penalty

You cannot cash a savings bond until you have owned it for at least one year. If you try to redeem it before that year is up, the bank will refuse. This is a hard rule set by the Treasury — no exceptions and no workarounds.

If you cash the bond after one year but before five years, you lose the last three months of interest. For example, if you bought a Series I bond on January 15, 2023, and cash it on March 1, 2024 (just over one year), you receive interest only through December 15, 2023 — the interest you earned in January, February, and early March is forfeited. This penalty applies to both Series EE and Series I bonds.

After five years, there is no penalty. You receive all interest earned up to the redemption date, and you can cash the bond whenever you want.

What happens to your interest when you redeem

When you cash a savings bond, you receive the original purchase price plus all interest earned up to the redemption date (minus the three-month penalty if you redeemed before five years). The interest is paid in a lump sum along with your principal.

The redemption amount is taxable as federal income in the year you cash the bond. You will receive a Form 1099-INT from the bank or TreasuryDirect showing the interest portion, which you report on your tax return. State and local taxes may also apply, depending on where you live.

If you bought the bond with Series I or Series EE bond tax-deferred status (by registering it for education expenses), you may be able to defer the tax to the year you use the money for may have access to education costs. Keep your purchase records and receipts to document this when you file.

Redeeming bonds registered to a minor or deceased person

If a bond is registered to a minor, a parent or legal guardian must cash it on the child's behalf. Bring the child's birth certificate or Social Security card, the guardian's ID, and the bond. Some banks may ask for a court order or guardianship papers if the relationship is not obvious from the documents.

If the bond owner has died, the redemption process depends on whether the bond names a beneficiary or co-owner. If there is a named beneficiary, that person can redeem it by providing the death certificate and their ID. If the bond is part of the estate with no named beneficiary, the executor or administrator must redeem it as part of settling the estate — bring the death certificate, proof of your role (such as letters testamentary), and your ID.

Cashing bonds held in a trust or business account

Bonds registered to a trust can be redeemed by the trustee using the trust's tax ID number. Bring the bond, the trustee's ID, and a copy of the trust document (some banks ask for this, others do not). The redemption amount is taxable to the trust, not to individual beneficiaries, unless the trust agreement specifies otherwise.

Bonds held in a business account or registered to a business entity require the business's tax ID and proof of authority — typically a corporate resolution, partnership agreement, or sole proprietor ID. The person redeeming must be authorized to sign on behalf of the business.

Lost or damaged bonds

If your paper bond is lost, stolen, or damaged beyond recognition, you can file a claim with the Treasury to replace it or receive its value. Contact TreasuryDirect or call the Bureau of the Fiscal Service at 844-284-2676. You will need to provide the bond's serial number (if you have it), the purchase date, and the original purchase price. The process takes several weeks.

If you have a damaged bond that is still readable, most banks will accept it for redemption as-is. If the damage is severe, ask the bank whether they will send it to the Federal Reserve for verification before processing.

Redeeming bonds through an inherited IRA or brokerage account

If you inherited savings bonds as part of an IRA or brokerage account, the process depends on the account type and the institution holding them. Contact the financial institution managing the inherited account — they will walk you through their redemption procedure, which may involve signing forms or meeting in person.

Inherited bonds held in a traditional IRA have different tax treatment than bonds you own outright. The redemption amount is subject to income tax in the year you withdraw it, and if you are under 59½, you may owe an early withdrawal penalty unless an exception applies. Consult a tax professional before redeeming inherited bonds from a retirement account.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds for free, regardless of whether you have an account there. However, some smaller institutions or credit unions may decline or charge a fee. Call ahead if you are unsure. If your bank refuses, the Federal Reserve Bank in your region will redeem paper bonds by mail.

What if I lost the physical bond but bought it through TreasuryDirect?

Electronic bonds exist only in your TreasuryDirect account, so there is no physical certificate to lose. Log in to your account, verify your ownership, and redeem online. If you cannot access your account, contact TreasuryDirect support to reset your password or verify your identity.

Do I have to pay taxes when I cash a savings bond?

Yes. The interest portion of your redemption is taxable federal income in the year you cash the bond. You will receive a Form 1099-INT showing the interest amount. State and local taxes may also apply. If the bond was registered for education expenses, you may defer the tax to the year you use the money for may have access to education costs.

What if I cash a bond before one year — will the bank refuse?

Yes. Banks cannot process redemptions for bonds held less than one year — the Treasury system will block the transaction. You must wait until the one-year anniversary of the purchase date.

Can I cash a bond online if I bought it as a paper bond?

No. Paper bonds must be redeemed in person at a bank, credit union, or Federal Reserve Bank. Only electronic bonds purchased through TreasuryDirect can be redeemed online.