Where and how to cash US bonds

You can cash in US bonds at most banks and credit unions, or directly through the US Treasury if you own them electronically. The method depends on whether your bonds are paper or digital, and which type of bond you hold.

Paper bonds (Series EE, Series I, and older Series) go to any bank or credit union that offers savings bond redemption. Call ahead to confirm they handle it — not every branch does. You'll bring the bond itself, your ID, and sign the back. The teller verifies the bond's serial number and current value, then gives you cash or deposits it to an account you hold there.

Electronic bonds held in TreasuryDirect (the Treasury's online system) are cashed through your TreasuryDirect account. You log in, select the bond, request redemption, and the money goes to the bank account linked to your TreasuryDirect account within a few business days.

Key Takeaways

  • Paper bonds cash at any bank or credit union that offers redemption services, though you should call first to confirm your branch does this.
  • Electronic bonds held in TreasuryDirect are redeemed through your online account and deposited to your linked bank account.
  • You cannot cash a bond before its final maturity date, though Series EE and I bonds can be redeemed after one year (with a penalty if cashed before five years).
  • Bring the physical bond, your ID, and sign the back when cashing paper bonds in person.
  • The Treasury does not charge a fee to redeem bonds, but your bank may charge a small processing fee.

Penalties for cashing bonds early

Series EE and Series I bonds can be cashed after one year, but the Treasury charges a penalty if you redeem before five years have passed. The penalty is the last three months of interest — meaning you lose the interest you would have earned in that period.

For example, if a Series I bond has earned $50 in interest and you cash it at year three, you forfeit the last three months of interest earnings. The exact amount depends on when you bought the bond and current interest rates, so the Treasury's website or your bank can calculate the penalty before you redeem.

Series HH bonds and older paper bonds have different rules. Series HH bonds cannot be redeemed before maturity. Older bonds (Series A through G) have maturity dates printed on them — once that date passes, the bond stops earning interest and you should cash it.

What you need to bring to the bank

For paper bonds, bring the bond certificate itself, a government-issued ID (driver's license, passport, or state ID), and be prepared to sign the back of the bond in front of the teller. Some banks ask for a second form of ID or proof of address, though this is less common.

If you're cashing a bond that belongs to someone else — a child, a deceased relative's estate, or a trust — the bank will ask for additional paperwork. For a minor's bond, you'll need proof you're the parent or guardian. For an estate, you'll need a death certificate and documentation showing you have authority to handle the deceased's assets. For a trust, bring the trust document itself.

For electronic bonds in TreasuryDirect, you don't need to bring anything physical. You log into your account from a computer, request the redemption, and confirm your linked bank account. The Treasury verifies your identity through the login credentials you set up when you opened the account.

How long redemption takes

Cashing a paper bond at a bank usually takes the same day. The teller processes it while you wait, and you can take cash or have it deposited to an account at that bank. If you deposit to an account at a different bank, the funds appear in one to three business days depending on how the banks process transfers.

Electronic bonds redeemed through TreasuryDirect take two to four business days. You request the redemption in your account, and the Treasury sends the money to your linked bank account. Weekends and federal holidays extend the timeline.

If you're cashing a bond that requires additional paperwork — for a minor, an estate, or a trust — the bank may hold it for review. This can add several days or a week depending on how quickly the bank's legal department processes the documents.

Fees and taxes on redeemed bonds

The US Treasury does not charge a fee to redeem bonds. However, your bank or credit union may charge a small processing fee, typically $5 to $15, though many waive it for customers with accounts. Ask before you redeem.

Interest earned on bonds is subject to federal income tax. When you redeem a bond, the bank or Treasury does not withhold tax automatically — you report the interest on your tax return for the year you cash it. If you've held the bond for many years, the accumulated interest can be substantial, so set aside money for taxes if you expect a large redemption.

Series I bonds have a special tax rule: you can choose to report interest annually (each year you own it) or all at once when you redeem it. Most people report it all at redemption. Series EE bonds follow the same choice. Older bonds and Series HH bonds have different rules — your bank can explain the tax treatment for the specific bond you're cashing.

What to do if you've lost a paper bond

If you've lost a paper bond, you cannot simply go to the bank and redeem it. You'll need to file a claim with the Treasury to replace it or get the value. Contact the Bureau of the Fiscal Service (the Treasury office that handles bonds) with the bond's serial number, issue date, and series. You can find the contact information on TreasuryDirect.gov.

The Treasury will verify that the bond was issued in your name and that it hasn't already been redeemed. If verified, they can issue a replacement bond or, in some cases, pay you the current value. This process takes several weeks.

If you have the bond's original purchase receipt or documentation, bring that when you contact the Treasury. It speeds up verification.

Cashing bonds held in someone else's name

If a bond is registered in someone else's name — a parent, grandparent, or other relative — you cannot cash it unless you have legal authority. A bond registered to "John Smith" can only be redeemed by John Smith or his estate representative.

If the bond owner has died, the bond becomes part of their estate. The person handling the estate (the executor or administrator) can redeem it by bringing a death certificate and documentation of their authority. This is usually a court document called letters testamentary or letters of administration.

If the bond is registered to a minor and you're the parent or guardian, you can redeem it by bringing your ID and proof of guardianship (birth certificate, custody order, or guardianship papers). Some banks accept a parent's ID alone if the child is very young.

Frequently Asked Questions

Can I cash a bond before it reaches its maturity date?

Series EE and I bonds can be cashed after one year, but you'll lose the last three months of interest if you redeem before five years. Series HH bonds cannot be cashed before maturity. Check your bond's series and issue date to know the rules for your specific bond.

What if my bank says they don't redeem bonds?

Not all banks offer bond redemption. Call other banks or credit unions in your area and ask. If none nearby do, you can redeem electronic bonds through TreasuryDirect online, or mail a paper bond to the Treasury (instructions are on TreasuryDirect.gov), though mailing takes longer.

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

You don't pay taxes at redemption, but the interest you earned is taxable income. You report it on your federal tax return for the year you cashed the bond. The bank or Treasury doesn't withhold tax, so you may owe when you file.

Can I cash a bond if I'm not the person whose name is on it?

Only the person named on the bond or their legal representative (executor, guardian, or trustee) can redeem it. If you're the parent of a minor, you can redeem a bond in the child's name by bringing proof of guardianship.

How do I know how much my bond is worth?

For electronic bonds, TreasuryDirect shows the current value in your account. For paper bonds, the bank calculates it when you bring it in. You can also use the Savings Bond Calculator on TreasuryDirect.gov if you know the series, denomination, and issue date.