Where to cash treasury bonds

You can cash treasury bonds at your bank, through the U.S. Department of the Treasury's TreasuryDirect website, or by mail to the Federal Reserve. The method depends on the type of bond you hold and whether it was issued before or after 2002.

If your bond was issued after 2002, it exists only in electronic form on TreasuryDirect, and you must redeem it through that same website. If your bond is a paper certificate issued before 2002, you have three routes: deposit it at your bank, redeem it online through TreasuryDirect (after you set up an account and link the bond), or mail it directly to a Federal Reserve Bank.

Banks are the fastest option for paper bonds if you have an account there. Most process the redemption within one business day. TreasuryDirect takes three to five business days. Mailing to the Federal Reserve takes one to two weeks, plus mail time in both directions.

Key Takeaways

  • Paper treasury bonds issued before 2002 can be cashed at your bank, through TreasuryDirect online, or by mail to a Federal Reserve Bank.
  • Electronic bonds purchased through TreasuryDirect after 2002 can only be redeemed through your TreasuryDirect account.
  • Your bank will process a paper bond redemption in one business day if you have an account there.
  • You will need the bond certificate number, issue date, and face value to redeem a paper bond by mail or online.
  • The Federal Reserve does not charge a fee to redeem treasury bonds, and neither does TreasuryDirect.

Cashing a paper bond at your bank

Bring the physical bond certificate and a valid ID to your bank's teller window. The bank must be a member of the Federal Reserve system, which includes nearly all U.S. banks. Ask the teller whether they redeem treasury bonds; most do, but some smaller institutions may refer you elsewhere.

The teller will verify the bond's authenticity by checking the serial number and issue date against Federal Reserve records. They will then deposit the face value plus any accrued interest directly into your account. You will receive a receipt showing the redemption date and amount. This process takes one business day.

If you do not have a bank account at the institution, some banks will still redeem the bond but may charge a small fee or require you to open an account. Call ahead to confirm their policy.

Redeeming bonds through TreasuryDirect online

Log into your TreasuryDirect account at treasurydirect.gov. If you do not have an account, you will need to create one using your Social Security number, email address, and a password. The account setup takes about 10 minutes.

Once logged in, select "Manage My Securities" and then "Redeem a Security." If your bond is electronic (purchased through TreasuryDirect after 2002), it will appear in your account and you can redeem it immediately. If you hold a paper bond issued before 2002, you will need to link it to your account first by entering the bond's serial number, issue date, and face value. This linking process takes one to two business days.

After the bond is linked or if it is already in your account, select the bond and confirm the redemption. The funds will be deposited into your linked bank account within three to five business days. TreasuryDirect charges no fee for this service.

Mailing a paper bond to the Federal Reserve

If you prefer not to use a bank or TreasuryDirect, you can mail the bond directly to a Federal Reserve Bank. First, locate the Federal Reserve Bank for your region at federalreserve.gov. Each region has a specific mailing address for bond redemptions.

Include the bond certificate, a letter stating your name, address, Social Security number, and the amount you are redeeming, and a copy of your ID. Do not send the original ID—a photocopy is sufficient. Mail everything via certified mail with return receipt requested so you have proof of delivery.

The Federal Reserve will process the redemption and mail you a check within one to two weeks of receiving your package. Add mail time on both ends, so expect the full process to take three to four weeks. There is no fee for this service.

What happens if your bond has matured

A matured bond has reached the end of its term and no longer earns interest. You can still redeem it for its face value at any time after maturity. However, the longer you wait after maturity, the more you lose to inflation, since the bond stops paying interest on the maturity date.

Matured bonds can be redeemed using any of the three methods above—bank, TreasuryDirect, or mail to the Federal Reserve. The process is identical. Check your bond certificate for the maturity date, which is printed on the front.

What to do if your bond is lost or damaged

If your paper bond certificate is lost, stolen, or too damaged to read, you can still redeem it. Contact the Federal Reserve Bank for your region directly by phone or mail. You will need to provide the bond's serial number (if you have it), issue date, face value, and the name of the person who purchased it.

The Federal Reserve will search their records to verify the bond exists and that it has not already been redeemed. If found, they will issue a replacement certificate or process the redemption directly. This process takes longer than a standard redemption—typically four to six weeks—because the Federal Reserve must conduct a search.

If you cannot locate the serial number or other details, gather any documentation you have: old statements, purchase confirmations, or correspondence from the Treasury. The Federal Reserve can sometimes locate a bond using partial information.

Understanding the interest you will receive

When you redeem a bond, you receive the face value plus accrued interest up to the redemption date. The interest rate depends on the type of bond and when it was issued. Series EE bonds, for example, earn interest monthly, while Series I bonds earn interest every six months.

Your bank or TreasuryDirect will calculate the accrued interest automatically and include it in the redemption amount. If you redeem by mail, the Federal Reserve will calculate it and include it in the check they send you.

You will receive a Form 1099-INT from the Treasury showing the interest you earned that year. This interest is taxable as federal income, though it is exempt from state and local income tax. Keep the redemption receipt for your tax records.

Frequently Asked Questions

Can I cash a treasury bond before it matures?

Yes. Series EE and Series I bonds can be redeemed anytime after you have held them for one year. If you redeem before five years, you will lose the last three months of interest. Other bond types have different rules—check your bond certificate or TreasuryDirect for the specific terms.

Do I need to report the redemption to the IRS?

You will receive a Form 1099-INT showing the interest earned, which you must report on your tax return. The face value itself is not taxable—only the interest is. Keep your redemption receipt as documentation.

What if my bank refuses to redeem my bond?

Some banks do not redeem treasury bonds, particularly smaller institutions. If yours declines, use TreasuryDirect or mail the bond to your regional Federal Reserve Bank. Both methods are free and take longer but will process the redemption.

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

At a bank: one business day. Through TreasuryDirect: three to five business days. By mail to the Federal Reserve: one to two weeks for processing, plus mail time in both directions (three to four weeks total).

Is there a fee to redeem a treasury bond?

No. The Treasury, Federal Reserve, and TreasuryDirect charge no fee. Some banks may charge a small fee if you do not have an account with them, so call ahead to confirm.