Where to cash your savings bonds

You can cash savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury. Banks are the fastest option if you have an account there — you can walk in with the bond and leave with cash the same day. Credit unions offer the same service to members. If you do not have a bank account or prefer to work directly with the government, you can mail your bonds to the Treasury or cash them through the TreasuryDirect website if they are electronic bonds.

Not every bank will cash bonds from customers who do not have an account, so call ahead. Some banks limit cashing to account holders only. The Treasury's Bureau of the Fiscal Service does not charge a fee to redeem bonds, but banks may charge a small fee (usually $5 to $25) if you are not a customer.

Key Takeaways

  • Series EE and I bonds must reach their issue date before you can cash them, except in rare hardship cases.
  • Banks and credit unions cash bonds the same day if you bring the physical bond and a valid ID; no appointment needed.
  • Electronic bonds held in TreasuryDirect can be redeemed online without visiting a bank.
  • The Treasury will mail you a check if you send bonds by mail, but the process takes two to four weeks.
  • Cashing a bond before it matures means you lose all unpaid interest accrued since the last interest payment date.

Cashing physical bonds at a bank or credit union

Bring the bond itself, a valid photo ID, and your Social Security number. The teller will verify the bond's serial number and issue date, confirm you are the registered owner, and process the redemption. You will receive the current value of the bond — the face value plus all accrued interest up to the redemption date. The entire transaction usually takes 10 to 15 minutes.

If the bond is registered to two people (co-owners), both owners must be present with ID to cash it. If the bond is registered to a minor and a parent or guardian, the adult must bring the minor's birth certificate or Social Security card along with their own ID. If the original owner has died, the person cashing the bond must bring a death certificate and proof of their right to the funds (such as a will or court order).

Redeeming electronic bonds through TreasuryDirect

If you own Series EE or I bonds purchased after 2002, they are held electronically in your TreasuryDirect account. Log in to TreasuryDirect.gov, go to the "Manage My Securities" section, and select the bond you want to redeem. Click "Redeem" and confirm the transaction. The funds will be deposited into the bank account linked to your TreasuryDirect account within one to three business days.

You do not need to own the bond for any minimum time to redeem it through TreasuryDirect — the system will let you redeem immediately. However, if you redeem before the bond has been held for one year, you will lose the last three months of interest. If you redeem after one year but before five years, you will lose the last three months of interest as a penalty.

Mailing bonds to the Treasury

If you cannot reach a bank or prefer to work by mail, send your bonds to the Bureau of the Fiscal Service, Parkersburg, WV 26106-1328. Include a letter stating your name, address, Social Security number, and the serial numbers of the bonds you are redeeming. Sign and date the letter. Do not send the bonds uninsured; use certified mail with return receipt requested.

The Treasury will verify ownership, calculate the redemption value, and mail you a check. This process takes two to four weeks from the date they receive your package. Keep a copy of your letter and the certified mail receipt until the check arrives. If the bonds are registered to two people or to a deceased person, include the same documentation you would bring to a bank.

Interest penalties for early redemption

Series EE and I bonds impose an interest penalty if you cash them before they reach certain ages. For both types, if you redeem within the first year of ownership, you lose the last three months of interest. If you redeem after one year but before five years, you still lose the last three months of interest. After five years, there is no penalty — you receive all accrued interest.

The penalty applies to the interest earned, not to the principal. For example, if you own a $100 Series I bond that has earned $15 in interest over two years, and the last three months of interest was $2, you will receive $113 (the $100 principal plus $13 in interest, minus the $2 penalty). Series HH bonds, which are older and less common, have different rules; contact the Treasury if you own them.

What happens if you cash before the bond matures

Series EE bonds reach final maturity at 30 years; Series I bonds at 30 years as well. You can cash either type before maturity without the government's permission, but you will lose the interest accrued since the last interest payment date (usually the last day of the month). You will also owe federal income tax on all the interest you received, whether you cash the bond or not.

If you are cashing the bond to pay for education expenses, you may be able to exclude some or all of the interest from federal income tax under the Education Savings Bond Program. You must have purchased the bond as an adult (age 24 or older), used the proceeds for may have access to education costs in the same year you cashed the bond, and meet income limits. Report the exclusion on your tax return using Form 8815.

Tax reporting when you cash a bond

The interest you earn on savings bonds is subject to federal income tax but not state or local income tax. You can report the interest in the year you cash the bond, or you can report it each year as it accrues (if you have been doing so all along). Most people wait until they cash the bond to report the interest.

The Treasury does not send you a 1099 form for savings bonds. Instead, you calculate the interest yourself by subtracting the purchase price from the redemption value. Keep your redemption receipt and your original purchase records so you can verify the amount if the IRS asks. If you cashed the bond at a bank, ask for a written receipt showing the redemption date and amount.

Frequently Asked Questions

Can I cash a savings bond before it reaches its issue date?

No, except in rare cases. Series EE and I bonds cannot be redeemed until at least one year after purchase. If you face a genuine hardship (medical emergency, natural disaster, or similar), contact the Treasury to request an exception. Hardship redemptions are uncommon and require documentation.

What if I lost the physical bond or it is damaged?

Contact the Bureau of the Fiscal Service at 304-480-6112 or visit savingsbonds.gov. You will need to provide the bond's serial number, issue date, and denomination. The Treasury can issue a replacement or help you redeem it. If you do not have the serial number, provide as much information as you remember and they will search their records.

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

You must cash the entire bond. You cannot split a bond or redeem a portion of it. If you own multiple bonds, you can choose which ones to redeem and leave others in place.

Will cashing a savings bond affect my benefits or taxes?

Cashing a bond does not affect means-tested benefits like Medicaid or SNAP because the redemption itself is not income — only the interest portion is taxable income. However, the interest will count toward your annual income for tax purposes. If you are close to a tax bracket threshold or income limit for a benefit program, consult a tax professional before redeeming.

How long does it take to receive the money after I redeem?

At a bank or credit union, you receive cash immediately. Through TreasuryDirect, the deposit takes one to three business days. By mail, the Treasury takes two to four weeks to process and mail a check to you.