Where to cash paper savings bonds

You can cash paper savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route for most people is their own bank — call ahead to confirm they accept savings bonds, bring the bonds and a photo ID, and they will cash them on the spot. Some banks charge a small fee (typically $5 to $15) to process the transaction, though many do not.

If your bank declines or you do not have a bank account, you can mail the bonds to the Treasury's Bureau of the Fiscal Service. The process takes longer — usually two to four weeks — but there is no fee. You will need to fill out Form PD 1522 (Statement of Ownership for Savings Bonds), include a copy of your ID, and mail everything to the address listed on the form.

A third option is to visit a Federal Reserve Bank branch in person if one is near you. This is fastest if you live in a major city with a branch, but most people do not have convenient access. Call the Federal Reserve's main number to find the branch nearest you and confirm their hours.

Key Takeaways

  • Your own bank or credit union is the fastest way to cash paper savings bonds — most will do it the same day if you bring the bonds and a photo ID.
  • You may pay a small fee ($5 to $15) at a bank, though many banks waive the fee for customers.
  • If your bank will not cash them, you can mail the bonds to the Treasury with Form PD 1522 and a copy of your ID, which takes two to four weeks.
  • Federal Reserve Bank branches also cash savings bonds in person, but only a handful exist nationwide.
  • The Treasury will not cash bonds over the phone or online — you must visit in person, mail them, or use a bank.

What you need to bring or send

For in-person cashing at a bank, bring the physical bond certificates and a government-issued photo ID (driver's license, passport, or state ID). That is all most banks require. Some banks may ask for your Social Security number or account information, but this is optional — they are just using it to report the transaction to the IRS.

If you are mailing the bonds to the Treasury, you will need to complete Form PD 1522, which asks for your name, address, Social Security number, and the bond serial numbers and denominations. Include a copy of your ID (front and back) and mail everything to the address on the form. Do not send the original ID — a photocopy is sufficient. Keep a copy of everything you send for your records.

If a bond is registered in a deceased person's name, the process is different. The person cashing it will need to provide proof of their authority to act on the estate — typically a death certificate and either a will or court order. Ask the bank or Treasury what documents they need before you send anything.

When you can cash paper bonds

You can cash a paper savings bond any time after you own it, but the amount you receive depends on how long you have held it. Series EE and Series I bonds earn interest monthly, and the longer you hold them, the more they are worth. If you cash a bond before it reaches final maturity (which is 30 years for most bonds), you will receive the current redemption value, not the face value printed on the certificate.

Series EE bonds purchased before May 2003 have a special rule: if you hold them for at least 17 years, they will double in value. If you cash one before that 17-year mark, you get only what it has earned so far. Check the purchase date on your bond to know whether this applies.

Series I bonds have a penalty for cashing within the first five years: you lose the last three months of interest. So if you have held an I bond for two years, you will receive the value as of 21 months ago, not the current value. After five years, there is no penalty.

Tax reporting when you cash bonds

The interest you earn on savings bonds is subject to federal income tax, but not state or local tax. You do not pay tax when you cash the bond — you report the interest on your tax return for the year you cash it. The bank or Treasury will not send you a tax form automatically; you are responsible for tracking the interest earned and reporting it yourself.

To calculate the interest, subtract what you paid for the bond from what you received when you cashed it. For example, if you bought a Series EE bond for $50 and cashed it for $67, your interest is $17. You report this on your federal tax return as interest income.

If you own bonds registered in a child's name, you may have the option to report the interest each year as it accrues, rather than all at once when you cash the bond. This can lower your tax bill if your child is in a lower tax bracket. Talk to a tax professional about whether this strategy makes sense for your situation.

What happens if a bond is lost or damaged

If a paper bond is lost or destroyed, you can request a replacement from the Treasury. You will need to fill out Form PD 1048 (Claim for Loss of Savings Bond) and provide as much information as you can about the bond — the series, denomination, issue date, and serial number if you have it. The Treasury will verify that the bond has not already been cashed, and if it has not, they will issue a replacement.

The process takes several weeks and requires you to sign the form in front of a notary public or bank officer. If you cannot locate the serial number or other details, the Treasury can sometimes search their records if you provide your name and Social Security number, though this takes longer.

If a bond is damaged but still readable, most banks will still cash it. If it is torn, faded, or otherwise hard to read, the bank may refuse it and direct you to contact the Treasury directly.

Cashing bonds held in a deceased person's name

If you are settling an estate and need to cash bonds registered in the deceased person's name, the process depends on whether you are the executor, beneficiary, or next of kin. You will need to provide the bank or Treasury with a death certificate and proof of your authority — usually a copy of the will, a court order appointing you executor, or letters testamentary from the probate court.

Some banks will cash the bonds directly if you provide these documents. Others will require you to go through the Treasury. Either way, the interest earned up to the date of death is part of the estate and subject to estate tax if the estate is large enough. Consult with the estate's attorney or accountant about the tax implications before cashing the bonds.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but not all. Call your bank first to confirm they offer this service. If they do not, the Treasury will cash them by mail, or you can try another bank in your area.

How much will I receive if I cash a bond early?

You will receive the current redemption value, which is printed in the Treasury's bond value tables online or available by phone. This is less than the face value if the bond has not reached maturity. For Series I bonds cashed within five years, you lose the last three months of interest.

Do I have to report the interest when I cash the bond?

Yes. The interest is taxable federal income in the year you cash the bond. You report it on your tax return. The bank or Treasury will not send you a form — you calculate the interest yourself and report it as interest income.

What if I lost the bond certificate?

Contact the Treasury and file Form PD 1048 (Claim for Loss of Savings Bond). You will need to provide details about the bond and sign the form in front of a notary. The Treasury will verify the bond has not been cashed and issue a replacement.

Can I cash a bond online?

No. Paper savings bonds cannot be cashed online. You must cash them in person at a bank or Federal Reserve branch, or mail them to the Treasury with the required forms and ID copy.