Where to cash your savings bond

You can cash a savings bond at most banks and credit unions, even if you don't have an account there. Walk in with the bond itself, a form of ID, and your Social Security number. The teller will verify the bond's value, check that it has reached its issue date (you cannot cash it before then), and give you the cash or deposit it into an account you name.

If you prefer not to visit a branch, you can also cash through the U.S. Treasury's TreasuryDirect website if you own the bond electronically. Paper bonds must be cashed in person or by mail.

Some employers offer payroll deduction for savings bonds, and if you bought through that program, you may have the option to redeem directly through your employer's benefits portal—though this varies by employer.

Key Takeaways

  • Most banks and credit unions will cash your savings bond on the spot without requiring you to be a customer, as long as you bring the bond, an ID, and your Social Security number.
  • Paper bonds cannot be cashed until they reach their issue date, which is printed on the bond itself.
  • Electronic bonds owned through TreasuryDirect can be redeemed online without visiting a bank.
  • If you cash a Series EE or Series I bond before five years have passed, you will lose the last three months of interest as a penalty.
  • The bank will report the interest you earned to the IRS on a Form 1099-INT, so you will owe income tax on that interest in the year you cash it.

What happens when you cash a paper bond

The teller will look up the current value of your bond using its series, denomination, and issue date. This value includes both what you paid for it and the interest it has earned. You receive the full amount in cash or as a deposit to your bank account—whichever you choose.

The bank keeps a record of the transaction and reports it to the U.S. Treasury. You do not need to file any paperwork with the government yourself. The bank will also issue you a receipt showing the bond's serial number, the amount paid, and the date.

The early redemption penalty and how it works

If you cash a Series EE or Series I bond before it has been held for five years, you lose the last three months of interest. This means if you bought the bond on January 15 and cash it on March 1 of the same year, you receive only the interest earned through December 15 of the previous year—not the interest for January, February, and March.

Series HH bonds (no longer sold but still held by many people) have a different rule: you cannot cash them at all. You can only exchange them for Series I bonds, and that exchange is treated as a redemption for tax purposes.

After five years, you can cash your bond anytime without losing interest. The penalty applies only to early redemptions.

Tax reporting when you cash a bond

The interest you earned on the bond is subject to federal income tax. When you cash the bond, the bank will send you and the IRS a Form 1099-INT showing the interest amount. You report this on your tax return in the year you cash it.

You do not owe tax on the original amount you paid for the bond—only on the interest it earned. For example, if you paid $50 for a Series EE bond and it is now worth $75, you owe tax only on the $25 in interest.

State and local income taxes may also apply, depending on where you live. Some states do not tax bond interest, while others do. Check your state's tax rules or speak with a tax professional if you are unsure.

Cashing bonds electronically through TreasuryDirect

If you own your bond through a TreasuryDirect account, you can redeem it online without visiting a bank. Log in to your account, select the bond you want to cash, and request the redemption. The money will be deposited into the bank account linked to your TreasuryDirect account within one to two business days.

Electronic bonds follow the same five-year early redemption penalty as paper bonds. You can see the exact date your bond becomes penalty-free by looking at its issue date in your TreasuryDirect account.

What to bring when you cash a paper bond in person

Bring the physical bond certificate, a government-issued ID (driver's license, passport, or state ID), and your Social Security number. The teller will verify your identity and match it to the bond's registered owner.

If someone else registered as the owner of the bond, that person must be present to cash it, or they must sign a power of attorney form authorizing you to redeem it on their behalf. If the bond was registered to two people as co-owners, either person can cash it alone.

If the bond's registered owner has died, the person handling their estate will need to bring a death certificate and proof of their authority to act (such as letters testamentary or a court order). Different banks may have slightly different requirements, so call ahead if you are in this situation.

Why some banks might refuse to cash your bond

Most banks will cash savings bonds, but some smaller institutions or branches may not have the systems in place to verify and process them. If your bank declines, try another bank in the same network or a different bank entirely. Credit unions are often willing to cash bonds even if you are not a member.

A bank may also refuse if the bond appears damaged, altered, or if the information on it does not match your ID. If your bond is worn or faded, contact the U.S. Treasury's Savings Bond Division before attempting to cash it; they can issue a replacement.

Frequently Asked Questions

Can I cash a savings bond before its maturity date?

Yes. Series EE and Series I bonds can be cashed anytime after their issue date, but if you cash before five years have passed, you lose the last three months of interest. After five years, you can cash without penalty. Series HH bonds cannot be cashed at all—they can only be exchanged for Series I bonds.

What if I lost my savings bond?

Contact the U.S. Treasury's Savings Bond Division with the bond's series, denomination, and issue date. They can search their records and issue a replacement if the bond is registered in your name. You will need to provide proof of ownership and may need to file a claim form. The process takes several weeks.

Do I have to pay taxes on the interest when I cash the bond?

Yes. The interest is subject to federal income tax in the year you cash the bond. The bank will send you a Form 1099-INT for tax reporting. State and local taxes may also apply depending on where you live. You do not owe tax on the amount you originally paid for the bond, only on the interest earned.

Can someone else cash my bond if I give them permission?

Only if they have a signed power of attorney from you or if they are a co-owner of the bond. A simple note or verbal permission is not enough. The person cashing the bond must present their own ID and the power of attorney document to the bank.

What if the bank says the bond is too old to cash?

Savings bonds do not expire. Even bonds issued decades ago can still be cashed. If a bank refuses because of age, try another bank. You can also redeem through TreasuryDirect if the bond is registered electronically, or contact the U.S. Treasury directly if you have questions about an older bond.