Where and how to cash your savings bonds

You can cash a savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury if your financial institution won't do it. Banks handle the majority of redemptions — you simply bring the bond and a form of ID, and they process it like any other transaction. If your bank declines (some smaller institutions don't offer this service), you can mail the bond to the Treasury or visit a Federal Reserve Bank in person.

The Treasury's direct redemption process takes longer than a bank visit but works if you have no other option. You'll mail the bond, a completed form, and a copy of your ID to the address listed on the Treasury website. Processing typically takes three to four weeks, and the Treasury mails you a check.

Key Takeaways

  • Most banks and credit unions will cash savings bonds for you in person with just the bond and an ID, usually within minutes.
  • You must wait until a bond reaches final maturity or its earliest redemption date before cashing it — cashing early means losing accrued interest.
  • Series EE and I bonds have different redemption rules: EE bonds can be cashed after one year, but I bonds require a five-year hold.
  • The Treasury processes direct redemptions by mail in three to four weeks if your bank won't cash the bond.
  • Bring the physical bond certificate and a government-issued ID to your bank; digital bonds held in TreasuryDirect can be redeemed online.

When you can actually cash your bond

The timing depends on the bond type and when you bought it. Series EE bonds can be cashed after one year of ownership, but you'll lose the last three months of interest if you cash before five years have passed. Series I bonds require a five-year hold — you cannot cash them before that point without penalty, and cashing between five and thirty years means losing the last three months of interest.

If you hold the bond past its final maturity date, it stops earning interest entirely. Series EE bonds stop earning after 30 years; Series I bonds stop after 30 years as well. At that point, cashing it is simply collecting what's already yours — there's no benefit to waiting longer.

Check the issue date printed on your bond certificate. If you're unsure whether you've met the holding period, your bank can look it up when you bring the bond in.

What you need to bring to the bank

For a physical bond certificate, bring the bond itself and a government-issued ID — a driver's license, passport, or state ID card. The bank will verify that the ID matches the registered owner of the bond. If someone other than the registered owner is cashing it (a parent cashing a bond registered to a child, for example), both people need to be present with ID.

If the bond is registered to a deceased person's estate, the bank will ask for a death certificate and documentation showing you have authority to act on behalf of the estate — typically a will or letters testamentary from probate court. Different banks have slightly different requirements here, so call ahead.

If you hold your bonds in TreasuryDirect (the Treasury's online account system), you don't need a physical certificate. You log into your account, select the bond, and request redemption. The money goes directly to your linked bank account within one to three business days.

What happens to the money after you cash

When you cash at a bank, you receive the full redemption value — principal plus all accrued interest — either as a check or deposited directly to your account if you request it. The bank doesn't withhold taxes; that's your responsibility when you file your tax return. The interest you earned is taxable income in the year you cashed the bond.

If you cashed before the five-year mark on a Series EE bond or before five years on a Series I bond, the bank will still give you the full amount you're may have access to to — they don't penalize you. The "penalty" is simply that you don't get the interest that would have accrued in those final three months. The bank calculates this automatically.

Keep the receipt or confirmation from the bank. You'll need it for your tax records, and it proves you cashed the bond on a specific date if questions arise later.

Cashing bonds registered to a minor

If the bond is registered in a child's name, a parent or legal guardian can cash it, but both the adult and the child must be present at the bank with ID. The bank treats this as a transaction on behalf of a minor and requires both parties to verify their identity.

The interest earned on the bond is taxable income to the child in the year it was cashed, not to the parent. This matters for tax purposes — you'll report it on the child's tax return if one is required. Some parents use this strategically by cashing bonds in years when the child has little other income, keeping the tax impact low.

If your bank won't cash the bond

Not all banks offer savings bond redemption, particularly smaller community banks or credit unions. If yours declines, ask if they can refer you to another institution nearby that does, or use the Treasury's direct redemption process.

To redeem directly through the Treasury, download Form PD F 1522 from the Treasury website, fill it out completely, and mail it along with the bond certificate and a photocopy of your ID to the Federal Reserve Bank address listed on the form. Include a return address and allow three to four weeks for processing. The Treasury will mail you a check for the redemption value.

This route is slower and requires you to trust the mail with your bond certificate, but it works if no local institution will help. Some people prefer to visit a Federal Reserve Bank in person if one is nearby — you can walk in with the bond and ID during business hours and redeem it the same day.

Tax reporting when you cash

The interest you earned is subject to federal income tax. You don't pay it when you cash the bond — you report it on your tax return for the year you cashed it. If you held the bond for multiple years, all the accumulated interest is taxable in the single year you redeemed it, not spread across the years you held it.

The bank does not send you a 1099 form automatically. You're responsible for tracking the interest earned and reporting it. To calculate the interest, subtract the purchase price from the redemption value you received. That difference is your taxable interest income.

Some states also tax savings bond interest, though most do not. Check your state's tax rules if you live in a state with income tax.

Frequently Asked Questions

Can I cash a savings bond before the five-year mark?

Series EE bonds can be cashed after one year, but you lose the last three months of interest if you cash before five years. Series I bonds cannot be cashed before five years under any circumstance. If you need the money urgently, EE bonds offer more flexibility, but the interest penalty is real.

What if I lost the physical bond certificate?

Contact the Treasury's Savings Bond Division. You can file a claim for a lost or destroyed bond, and they'll issue a replacement after verifying you own it. This process takes several weeks. If the bond is held in TreasuryDirect, you don't have a physical certificate to lose — it exists only in your online account.

Do I have to cash the entire bond, or can I cash part of it?

You cash the entire bond in one transaction. You cannot split a bond or redeem a portion of it. If you own multiple bonds, you can cash some and keep others, but each individual bond is an all-or-nothing redemption.

What if the bond is in both my name and someone else's name?

Both registered owners must be present with ID to cash the bond. If one owner is deceased or unavailable, you'll need to go through the bank's process for handling jointly-owned property, which typically requires legal documentation.

How long does it take to get the money after I cash?

At a bank in person, you usually get a check on the spot or can request a deposit to your account within one business day. Through TreasuryDirect online, the money reaches your linked bank account in one to three business days. Direct mail redemption through the Treasury takes three to four weeks.