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. Walk in with the bond itself and a valid photo ID. The teller will verify the bond is genuine, check that you are the registered owner or an authorized representative, and process the redemption on the spot — usually within minutes.

If you prefer not to visit a branch, the U.S. Treasury also redeems bonds by mail. Send the bond and a completed Form PD 1522 (Request for Payment of Savings Bond) to the Treasury Retail Securities Site in Parkersburg, West Virginia. Include a photocopy of your ID. Mail redemption takes two to four weeks, and you will receive a check.

Some employers offer payroll savings plans that let you redeem bonds directly through your HR department. Check with your benefits office to see if this option is available.

Key Takeaways

  • Most banks and credit unions will cash your savings bond in person with just the bond and a photo ID, regardless of where you opened your account.
  • You must wait until a bond reaches final maturity or the end of its grace period to cash it without penalty, though some bonds allow early redemption after one year.
  • Series EE and I bonds purchased before May 2003 have a final maturity date of 30 years; those purchased after reach final maturity at 30 years as well.
  • If you cash a bond before it reaches five years old, you lose the last three months of interest as a penalty.
  • Mail redemption through the Treasury takes two to four weeks and requires Form PD 1522 and a photocopy of your ID.

Penalties for cashing before the bond matures

Savings bonds impose an early redemption penalty if you cash them before they reach five years old. The penalty is three months of interest — meaning you forfeit the last three months of accrued interest and receive only the principal plus interest earned up to that point.

Once a bond reaches five years old, you can cash it without penalty. However, you still cannot redeem it before the bond reaches its final maturity date unless the bond's terms specifically allow early redemption. Series EE bonds purchased after May 2003 and Series I bonds allow redemption at any time after one year, but the three-month penalty still applies if redeemed before five years.

If you are unsure whether your bond has reached five years or what its maturity date is, check the issue date printed on the bond itself. You can also look up your bonds on the Treasury's TreasuryDirect website if you registered them there.

What happens to interest when you redeem

When you cash a savings bond, you receive the face value plus all accrued interest up to the redemption date (minus any early redemption penalty). The interest is paid as part of the same check or deposit — there is no separate interest payment.

Interest on savings bonds is federal income tax only; it is not subject to state or local income tax. You will owe federal tax on the interest in the year you redeem the bond. The bank or credit union does not withhold taxes automatically, so you are responsible for reporting the interest on your tax return.

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 of redemption, not the year the bond was issued.

Redeeming bonds registered to a minor or deceased person

If a bond is registered in a child's name, a parent or legal guardian can redeem it by presenting the bond, their own photo ID, and proof of guardianship (such as a birth certificate showing the parent's name). The minor does not need to be present.

If the bond owner has died, the person handling the estate can redeem the bond by providing the bond itself, their photo ID, and a certified copy of the death certificate. If the bond names a beneficiary, that person can redeem it directly. If there is no beneficiary, the executor or administrator of the estate will need to redeem it as part of settling the estate.

Contact the bank or the Treasury before you visit or mail in documents — requirements vary slightly by institution, and some may ask for additional paperwork such as letters testamentary or court orders.

Tax reporting when you redeem

The financial institution where you redeem the bond does not issue a 1099-INT form automatically. You are responsible for tracking the interest earned and reporting it on your federal tax return (Form 1040, Schedule B if interest exceeds $1,500).

To calculate the interest, subtract the purchase price from the redemption amount. For example, if you bought a Series EE bond for $50 and cashed it for $87, your taxable interest is $37. Keep the redemption receipt as proof in case the IRS asks.

If you redeemed bonds over multiple years, report the interest from each redemption in the year it was cashed. If you have a large amount of interest to report, consider consulting a tax professional to ensure you are reporting it correctly and not missing any deductions.

Redeeming bonds held in TreasuryDirect

If you own bonds through TreasuryDirect (the Treasury's online platform), you cannot redeem them at a bank. Instead, you log into your TreasuryDirect account, select the bond you want to redeem, and request the redemption online. The Treasury deposits the proceeds directly into your linked bank account within one to two business days.

You can only redeem bonds that meet the redemption rules for that bond type — Series EE and I bonds must be at least one year old, and the three-month penalty applies if they are under five years old. The TreasuryDirect system will not allow you to redeem a bond that does not meet these conditions.

If you have forgotten your TreasuryDirect password, you can reset it on the login page. If you no longer have access to the email address associated with your account, contact the Treasury's customer service line at 844-284-2676.

What to do if you cannot find your bond

If you own a savings bond but cannot locate the physical certificate, you can still redeem it if it is registered in your name. The Treasury maintains a record of all bonds issued. Visit the TreasuryDirect website and log in with your Social Security number and password. If the bond is in the system, you can redeem it online without the physical certificate.

If the bond is not in TreasuryDirect (because it was issued before the system existed or was never registered online), contact the Treasury Retail Securities Site at 304-480-6112. Provide your name, Social Security number, and as much information as you remember about the bond — the issue date, series, and approximate denomination. The Treasury can search their records and may be able to redeem it by mail.

Do not assume a lost bond is gone. The Treasury keeps records for the life of the bond, and you have the right to redeem it as long as you can prove ownership.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash a savings bond regardless of where you have an account, but some smaller institutions may decline. Call ahead if you are unsure. If your bank will not cash it, the Treasury will redeem it by mail.

What if my savings bond is damaged or torn?

A slightly damaged bond can usually still be cashed at a bank. If it is severely damaged or illegible, the Treasury can redeem it by mail if you provide as much identifying information as possible — the series, denomination, issue date, and your name. Include a note explaining the damage.

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

Savings bonds are redeemed in full only. You cannot cash half a bond and keep the other half. If you need only part of the value, you will have to cash the entire bond and manage the proceeds yourself.

How long does it take to get my money after I redeem?

In-person redemption at a bank is immediate — you walk out with a check or deposit the same day. Mail redemption takes two to four weeks. TreasuryDirect redemptions deposit within one to two business days.

What if I redeemed a bond and did not report the interest on my taxes?

You can file an amended return for the year you cashed the bond. Use Form 1040-X to report the interest you missed. The longer you wait, the more likely the IRS will notice the discrepancy, so it is better to correct it yourself.