Where to cash a 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, a valid photo ID, and your Social Security number. The teller will verify the bond's serial number, check that it has reached final maturity or that you are the registered owner, and process the redemption on the spot — usually within minutes.

If you do not want to visit a branch in person, you can mail the bond to the U.S. Department of the Treasury's Bureau of the Fiscal Service. Send it to the address listed on the Treasury Direct website, along with a form of identification and a signed letter requesting redemption. Processing by mail takes two to four weeks, and you will receive a check by mail.

For Series I and Series EE bonds purchased through Treasury Direct (the government's online bond platform), you can also redeem them directly through your Treasury Direct account without visiting a bank. Log in, select the bond, and request redemption. The funds will transfer to your linked bank account within one to three business days.

Key Takeaways

  • Most banks and credit unions will cash a savings bond for you, regardless of where you purchased it, as long as you bring the physical bond and a photo ID.
  • Series EE bonds must be held for at least one year before you can cash them, and you lose the last three months of interest if you cash them before five years.
  • Series I bonds cannot be cashed for one year, and if you cash them before five years, you forfeit the last three months of interest.
  • You can redeem Series I and EE bonds purchased through Treasury Direct directly online without visiting a bank.
  • The Treasury will send you a check by mail if you prefer not to use a bank, though processing takes longer.

Penalties for cashing bonds early

Both Series EE and Series I bonds carry an early redemption penalty if you cash them before five years have passed. The penalty is the loss of the last three months of interest. For example, if a Series I bond has earned $50 in interest over three years, you will receive the principal plus $50 minus three months' worth of the interest you earned.

Series EE bonds cannot be redeemed at all during the first year you own them. Series I bonds have the same one-year lock-in. After one year, you can cash either type, but the three-month interest penalty applies until the five-year mark.

Once a bond reaches final maturity (30 years for Series EE, 30 years for Series I), it stops earning interest. At that point, there is no penalty for cashing it — you simply receive the principal and all accrued interest.

What happens to the interest you earned

When you cash a bond, you receive the principal (the amount you originally paid) plus all accrued interest, minus any early redemption penalty. The interest is added to your ordinary income for the year you cash the bond, which means you will owe federal income tax on it.

You do not owe tax on the interest until you actually redeem the bond. This is different from many other investments — you can hold a savings bond for 20 years and pay no tax on the interest until you cash it. The bank or Treasury will not withhold tax automatically; you will report the interest on your tax return for the year of redemption.

If you cashed bonds in a previous year and did not report the interest, you can still report it now. The interest is taxable in the year you receive it, not the year you earned it.

Transferring bonds to another person

Savings bonds are registered to a specific owner or owners. You cannot simply hand a bond to someone else and have them cash it — the person named on the bond must be the one to redeem it, or the bond must be reissued in the new owner's name.

If you want to give a bond to someone else, you will need to contact the Treasury or your bank about reissuing it. This process varies depending on whether the bond is a paper bond or held in a Treasury Direct account. For paper bonds, you typically fill out a form and submit it with the bond itself. For Treasury Direct bonds, you can transfer ownership through your online account.

If a bond owner dies, the executor of the estate or the surviving co-owner (if the bond was registered to two people) can redeem it. Bring a death certificate and proof of authority to act on behalf of the estate.

Cashing paper bonds versus Treasury Direct bonds

Paper savings bonds — the physical certificates you may have received as gifts or purchased years ago — must be cashed in person at a bank or by mail to the Treasury. You cannot redeem them online. If you have lost a paper bond, you can file a claim with the Treasury, but the process takes several months and requires documentation of the original purchase.

Treasury Direct bonds, purchased online through your Treasury Direct account, can be redeemed directly through the website. You do not need to visit a bank or mail anything. The redemption is faster and you have a permanent digital record of the transaction.

If you own both types, treat them separately. Paper bonds require a bank visit or mail; Treasury Direct bonds go through your online account. You cannot mix the two methods for a single bond.

Tax reporting when you cash a bond

When you redeem a savings bond, the bank or Treasury does not send you a tax form automatically. You are responsible for reporting the interest on your federal tax return. The interest is added to your ordinary income and taxed at your regular income tax rate.

If you cashed multiple bonds in the same year, add up all the interest and report the total. Keep records of the bonds you cashed, the principal amount, and the interest earned — you can find this information on the bond itself or in your Treasury Direct account history.

If you cashed a bond in a previous year and did not report the interest, you can file an amended return for that year. The interest is still taxable, even if you missed reporting it initially.

What to do if you cannot find your bond

If you own a paper savings bond but cannot locate it, you can file a claim with the Treasury's Bureau of the Fiscal Service. You will need the bond's serial number (if you have it), the issue date, the series (EE or I), and proof of purchase or ownership. The Treasury will search its records and, if found, can reissue the bond or pay you the value.

The process takes several months. You will need to complete a form and provide documentation — a bank statement showing the purchase, a gift letter if it was a gift, or other proof. If the Treasury confirms the bond exists and has matured, they will send you a check for the full value.

For Treasury Direct bonds, log into your account to see all bonds you own. If you have forgotten your password, you can reset it using your email address and Social Security number. All your Treasury Direct holdings are stored digitally, so they cannot be lost the way a paper bond can.

Frequently Asked Questions

Can I cash a savings bond before it matures?

Yes, but with limits. Series EE and Series I bonds cannot be cashed during the first year you own them. After one year, you can cash them anytime, but you will lose the last three months of interest if you cash before five years. After five years, there is no penalty.

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

You will owe federal income tax on the interest you earned, reported in the year you cash the bond. You do not owe tax on the principal — only the interest. State and local taxes vary by location; some states do not tax savings bond interest.

What if the bond is registered to two people?

Either owner can redeem the bond without the other's permission. If one owner dies, the surviving owner can still cash it. If both owners are deceased, the executor of the estate can redeem it with a death certificate and proof of authority.

How long does it take to get my money after I cash a bond?

At a bank, you receive the money immediately or within one business day. Through Treasury Direct online, funds transfer to your linked bank account within one to three business days. By mail to the Treasury, expect two to four weeks for processing and delivery.

Can I cash a bond at any bank, or only the one where I bought it?

You can cash a savings bond at virtually any bank or credit union in the United States, regardless of where you purchased it. Bring the bond, a photo ID, and your Social Security number. Some very small banks may decline, so calling ahead is wise if you are unsure.