You can cash most savings bonds online through TreasuryDirect, but only if you own them in a TreasuryDirect account

The fastest way to cash a savings bond online is through TreasuryDirect, the U.S. Department of the Treasury's official platform. You log in, select the bond you want to redeem, and the money arrives in your linked bank account within one to three business days. This works for Series EE bonds, Series I bonds, and Series HH bonds held in TreasuryDirect.

If your bonds are paper certificates or held elsewhere, you cannot cash them through TreasuryDirect online. Paper bonds must be redeemed by mail or in person at a bank. Bonds held in a brokerage account or inherited bonds in probate have different paths. This guide covers the online route only.

Key Takeaways

  • TreasuryDirect online redemption works only for bonds you already own in a TreasuryDirect account, not for paper certificates or bonds held at banks or brokerages.
  • You must have a verified TreasuryDirect login and a U.S. bank account linked to your account before you can redeem online.
  • The redemption takes effect on the date you request it, and the money typically arrives within one to three business days.
  • Series I bonds have a penalty if you redeem before five years; Series EE bonds have a penalty if you redeem before one year.
  • You can redeem a partial amount of a bond or the full amount, and you can redeem multiple bonds in a single transaction.

Setting up TreasuryDirect if you do not have an account yet

If you own bonds in TreasuryDirect already, skip this section. If you inherited bonds or received them as a gift and they are in TreasuryDirect under someone else's account, you will need to set up your own account and have the bonds transferred to you—that process is not online and requires paper forms.

To create a TreasuryDirect account, go to treasurydirect.gov, click "Open an Account," and provide your Social Security number, date of birth, and a valid U.S. mailing address. You will need a username and password. The account opens immediately, but you cannot redeem bonds until you verify your identity. Verification happens through an automated phone call or by uploading a photo of your driver's license or passport. This step usually completes within 24 hours.

Once your account is verified, link a U.S. bank account for deposits. Go to "Manage Account," select "Banking Information," and enter your routing number and account number. TreasuryDirect will make two small test deposits to that account within a few days. You must confirm the amounts to complete the link. Only after this step can you redeem bonds online.

How to redeem a bond through TreasuryDirect

Log into your TreasuryDirect account and go to "Manage Direct Book-Entry Securities." You will see a list of all bonds in your account, with their series, issue date, face value, and current value. Click on the bond you want to redeem.

Select "Redeem" from the options menu. TreasuryDirect will show you the redemption value—the amount you will receive. For Series I bonds, this includes any accrued interest. For Series EE bonds, it shows the current value, which may be more or less than what you paid. Review the amount and confirm the redemption date. The redemption takes effect on the date you request it, even if the money has not yet arrived in your bank account.

You can redeem the full value of the bond or a partial amount. If you redeem a partial amount, the remaining balance stays in your account and continues to earn interest. After you confirm, the transaction is submitted. You will receive a confirmation number and a confirmation email. The money will be deposited into your linked bank account within one to three business days.

Early redemption penalties and waiting periods

Series I bonds cannot be redeemed before five years without a penalty. If you redeem before five years, you lose the last three months of interest. For example, if you redeem at four years and nine months, you receive interest only through four years and six months.

Series EE bonds can be redeemed after one year, but if you redeem before five years, you lose the last three months of interest. If you redeem within the first year, the redemption is not allowed through TreasuryDirect online—you must contact TreasuryDirect by phone or mail.

Series HH bonds have no early redemption penalty, but they must be at least six months old to redeem. Check your bond's issue date in your TreasuryDirect account to confirm you meet the minimum holding period.

What to do if your bonds are paper certificates

Paper savings bonds cannot be redeemed online. You must redeem them by mail or in person. To redeem by mail, fill out Form PD 1522 (Statement of Ownership for Cashing Savings Bonds), include the bonds themselves, and send them to the address listed on the form. Processing takes four to six weeks.

To redeem in person, take your bonds and a photo ID to a bank or credit union. Not all banks redeem savings bonds, so call ahead. The teller will verify the bonds, check that they are old enough to redeem, and pay you on the spot. Bring your Social Security card or a document with your Social Security number.

If you want to move paper bonds into TreasuryDirect so you can redeem them online in the future, you must first redeem them, then purchase new bonds through TreasuryDirect. The old paper bonds cannot be transferred into a digital account.

Bonds held at banks or brokerages

If you bought savings bonds through a bank or brokerage, they are not in TreasuryDirect and cannot be redeemed through TreasuryDirect online. Contact the institution where you hold them and ask about their redemption process. Banks typically allow you to redeem in person or by mail. Brokerages have their own online redemption systems.

If you are unsure where your bonds are held, log into TreasuryDirect and check your account. If the bonds do not appear there, they are held elsewhere. You can also call TreasuryDirect at 844-284-2676 to confirm.

Taxes and reporting when you redeem

When you redeem a savings bond, you owe federal income tax on the interest you earned. You do not owe tax on the principal (the amount you originally paid). TreasuryDirect does not withhold taxes automatically, so you will owe the tax when you file your return.

In the year you redeem, TreasuryDirect will send you a Form 1099-INT showing the interest earned. You report this on your federal tax return. If you redeemed bonds in multiple years, you may have received interest in those years too—you owe tax on all of it, even if you did not redeem the bonds until now.

Some people choose to report the interest each year as the bond earns it, rather than all at once when they redeem. This can lower your tax bill if you are in a lower tax bracket in the years you hold the bond. You must make this choice before you redeem and stick with it for all bonds in that series. Consult a tax professional if you hold a large amount of savings bonds.

Frequently Asked Questions

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

The money typically arrives in your linked bank account within one to three business days. The redemption takes effect on the date you request it, but the deposit may take a few days to clear. Weekends and holidays can add time.

Can I redeem only part of a bond?

Yes. When you redeem, you can enter any amount up to the full value of the bond. The remaining balance stays in your account and continues to earn interest. You can redeem partial amounts multiple times.

What happens if I try to redeem a Series I bond before five years?

TreasuryDirect will allow the redemption, but you will lose the last three months of interest as a penalty. The system shows you the penalty amount before you confirm, so you can see exactly what you will receive.

Can I redeem a bond that is in someone else's name?

No. You can only redeem bonds that are registered in your own name in your TreasuryDirect account. If a bond is in someone else's name, they must redeem it themselves, or you must go through a legal process like probate or a transfer on death to change ownership first.

What if I forgot my TreasuryDirect password?

Go to treasurydirect.gov and click "Forgot Password." You will be asked security questions and sent a reset link to your email. If you cannot answer the security questions, call TreasuryDirect at 844-284-2676 and they can verify your identity by phone and reset your account.