Where to cash US bonds depends on the bond type and who issued it

US bonds come from two main sources: the US Treasury (savings bonds and Treasury securities) and corporations or municipalities (corporate and municipal bonds). The place you cash them and the steps you take are completely different depending on which one you hold. Treasury bonds go through the Treasury or a bank. Corporate and municipal bonds go through a broker or the issuer. Knowing which type you own is the first step.

If you own a physical paper bond, you will need to locate the original certificate or a replacement. If you own a bond held electronically in an account, the process is faster because the issuer already has your information on file. Either way, you cannot simply walk into a bank with a bond and walk out with cash—each route has specific steps and timelines.

Key Takeaways

  • Treasury savings bonds (Series EE and I bonds) are cashed through TreasuryDirect, a bank, or the Federal Reserve, depending on how you own them.
  • Treasury bills, notes, and bonds held in brokerage accounts are sold on the secondary market rather than redeemed directly with the Treasury.
  • Corporate and municipal bonds are sold through a broker, not redeemed with the issuer.
  • Paper bonds require the original certificate or a replacement form; electronic bonds can be cashed by logging into your account.
  • Cashing before maturity may mean accepting a lower price or paying an early redemption penalty, depending on the bond type.

Cashing Treasury savings bonds through TreasuryDirect

If you own a Series EE or Series I savings bond and it is held in a TreasuryDirect account, you can cash it online. Log into your TreasuryDirect account at treasurydirect.gov, select the bond you want to redeem, and request the cash transfer. The money goes to the bank account linked to your TreasuryDirect profile, usually within one to two business days.

You can cash a Series EE or I bond after one year. If you cash it before five years have passed, you lose the last three months of interest. After five years, you get all accrued interest with no penalty. The amount you receive is the purchase price plus all interest earned to the redemption date. TreasuryDirect will show you the exact amount before you confirm the transaction.

If you have forgotten your TreasuryDirect login or never set up an account, you can still cash the bond through a bank or the Federal Reserve. Call the Federal Reserve's Securities Transaction Services at 1-844-284-2676 to ask which banks in your area handle savings bond redemptions, or contact your own bank directly to ask if they offer this service.

Cashing paper savings bonds at a bank or the Federal Reserve

If you hold a physical paper Series EE or I bond, bring the original certificate to a bank and ask to redeem it. Not all banks offer this service, so call ahead. You will need to show a government-issued photo ID. The bank will verify the bond's authenticity, calculate the current value, and issue you a check or deposit the funds directly to your account. The process usually takes a few minutes to a few hours, depending on the bank's procedures.

If your bank does not redeem savings bonds, or if you prefer not to use a bank, you can mail the bond to the Federal Reserve. Contact the Bureau of the Fiscal Service at 844-284-2676 to request the mailing address for your region and to ask for Form PD 1522, which is the redemption request form. Mail the form and the original bond certificate together. The Federal Reserve will send you a check within two to three weeks.

If you have lost the original paper bond, you can request a replacement. Contact the Bureau of the Fiscal Service with proof of ownership (such as a purchase receipt or tax records showing you bought the bond). They will issue a replacement certificate that you can then redeem through a bank or by mail.

Selling Treasury bills, notes, and bonds before maturity

If you own a Treasury bill, note, or bond (not a savings bond) and want cash before the maturity date, you do not redeem it with the Treasury—you sell it on the secondary market. This means selling it through a broker, which is any licensed financial institution that buys and sells securities. Your bank may have a brokerage arm, or you may use an online brokerage like Fidelity, Charles Schwab, or Vanguard.

Log into your brokerage account, find the Treasury security you want to sell, and place a sell order. The price you receive depends on current interest rates and market demand. If interest rates have risen since you bought the bond, you will receive less than you paid. If rates have fallen, you will receive more. The sale usually settles within one to two business days, and the cash appears in your brokerage account.

If you hold the Treasury security in a TreasuryDirect account instead of a brokerage, you can transfer it to a broker's account and then sell it. This transfer takes a few days, so plan ahead if you need the cash quickly. Alternatively, some brokers can sell Treasury securities directly from a TreasuryDirect account without requiring a transfer, though this varies by broker.

Selling corporate and municipal bonds

Corporate and municipal bonds are sold through a broker, not redeemed with the issuer. If you own the bond in a brokerage account, log in and place a sell order just as you would for a Treasury security. The price depends on the bond's credit rating, current interest rates, and how much time remains until maturity. You will receive the sale price minus any commission the broker charges.

If you hold a paper certificate for a corporate or municipal bond, you will need to deposit it with a broker first. Contact a broker and ask about their process for accepting physical bond certificates. They will typically ask you to mail the certificate to them, and they will hold it in your account until you decide to sell. Once it is in the account, you can sell it on the secondary market.

Some corporate bonds have a call feature, which means the issuer can redeem the bond before maturity. Check your bond's prospectus or ask your broker whether the bond is callable and when the call date is. If the bond is called, the issuer will redeem it at the call price, which may be higher or lower than the current market price.

Understanding the cost of cashing bonds early

Cashing a bond before maturity usually costs you money in one of two ways: a lower price on the secondary market, or an early redemption penalty. Treasury securities sold before maturity are subject to market price fluctuations—if rates have risen, the bond is worth less. Savings bonds lose three months of interest if cashed before five years. Some corporate bonds charge an explicit early redemption penalty, which is stated in the bond's terms.

Before you cash a bond, calculate what you will actually receive. For a Treasury security, ask your broker for the current bid price. For a savings bond, log into TreasuryDirect or ask the bank to show you the redemption value. For a corporate bond, check the prospectus for any early redemption penalties and ask your broker for the current market price. Knowing the exact amount helps you decide whether cashing now is worth the cost.

What to do if you cannot find your bond or the issuer

If you own a paper bond but cannot locate the certificate, contact the Bureau of the Fiscal Service (for Treasury savings bonds) or the issuer directly (for corporate or municipal bonds). For Treasury bonds, call 844-284-2676 and explain that you have lost the certificate. They will ask for proof of ownership, such as a purchase receipt, tax return showing the bond, or bank records. Once verified, they will issue a replacement certificate.

For corporate or municipal bonds, contact the issuer's investor relations department or the transfer agent listed on your original bond documents. They maintain records of all bonds issued and can help you locate your bond or issue a replacement. If you cannot find the issuer's contact information, search the SEC's EDGAR database (sec.gov/edgar) for the company's filings, which usually list contact information for investor relations.

If you inherited a bond and do not know who issued it, look for any paperwork that came with the estate. The bond certificate itself will state the issuer name and the bond type. If you still cannot identify it, take a photo of the certificate to a bank or broker and ask them to help you identify the issuer and determine its current value.

Frequently Asked Questions

Can I cash a US savings bond before one year has passed?

No. Series EE and I savings bonds cannot be cashed until at least one year after purchase. If you need the money sooner, you will have to wait or find another source of funds. After one year, you can cash the bond, but you will lose the last three months of interest if you do.

What happens if I cash a savings bond before five years?

You receive the purchase price plus all interest earned, but you forfeit the last three months of interest as a penalty. For example, if your bond has earned $50 in interest over three years, you receive the purchase price plus $50 minus three months of accrued interest. After five years, this penalty no longer applies.

Do I have to pay taxes when I cash a bond?

Yes. The interest earned on US savings bonds is subject to federal income tax. You can report it in the year you cash the bond, or you can report it each year as it accrues—ask your tax preparer which method makes sense for your situation. State and local taxes vary by location. Treasury securities and corporate bonds also generate taxable interest.

Can I sell a Treasury bond for more than I paid for it?

Yes, if interest rates have fallen since you bought it. Bond prices move opposite to interest rates: when rates fall, existing bonds become more valuable because they pay a higher rate than new bonds. When rates rise, existing bonds become less valuable. The exact price depends on how much rates have changed and how much time remains until maturity.

What if the bank refuses to cash my paper savings bond?

Some banks no longer redeem paper bonds due to staffing or policy changes. If your bank refuses, ask them for a list of other banks in your area that do redeem bonds, or contact the Federal Reserve directly at 844-284-2676. You can also mail the bond to the Federal Reserve with Form PD 1522, and they will send you a check within two to three weeks.