You can redeem a savings bond at most banks, through the Treasury Department online, or by mail

The way you redeem a savings bond depends on what type of bond you own and whether you have the physical bond or a digital record. Series EE and Series I bonds — the most common types — can be cashed at your bank, through the Treasury's online system called TreasuryDirect, or by mailing the bond directly to the Federal Reserve. The fastest route is usually your bank if you have the paper bond in hand. If you own the bond digitally through TreasuryDirect, you can redeem it online in minutes.

Before you redeem, check whether your bond has reached its final maturity date. Bonds stop earning interest at a certain point — for Series EE bonds, that's 30 years; for Series I bonds, it's also 30 years. You can redeem a bond before it matures, but you'll lose the last three months of interest as a penalty if the bond is less than five years old. After five years, there's no penalty.

Key Takeaways

  • Banks will cash Series EE and Series I bonds if you bring the physical bond and a valid ID, though some banks charge a small fee or require you to have an account there.
  • TreasuryDirect lets you redeem digital bonds online instantly, and the money goes into your linked bank account within one to two business days.
  • Bonds less than five years old lose their last three months of interest when redeemed, so waiting until the five-year mark saves you money if you can.
  • If you've lost the physical bond, you can request a replacement from the Treasury or redeem it through TreasuryDirect if it's registered in your name.
  • The Treasury will send you a 1099-INT form at tax time for the interest you earned, which you must report as income on your tax return.

Redeeming a paper bond at your bank

Bring the physical bond and a valid government-issued ID to any bank branch. Most banks will cash Series EE and Series I bonds for customers, though policies vary. Some banks only cash bonds if you have an account with them; others will cash them for anyone. A few banks charge a small fee — usually $5 to $15 — though many do not.

The teller will verify the bond's serial number and check that it hasn't been reported lost or stolen. They'll confirm the current value (which you can look up yourself on the Treasury website before you go) and give you the cash or deposit it into your account. The whole process usually takes 10 to 15 minutes. If the bank doesn't cash bonds, they'll tell you upfront rather than sending you away after a wait.

Call ahead if you're uncertain whether your bank handles bonds or charges a fee. Some smaller branches or credit unions don't keep the systems in place to process them, so confirming saves a trip.

Redeeming a digital bond through TreasuryDirect

If you own the bond through TreasuryDirect — the Treasury's online system for holding bonds — you can redeem it without leaving your house. Log into your TreasuryDirect account, navigate to the "Manage My Securities" section, and select the bond you want to redeem. The system will show you the current value and ask you to confirm the redemption.

Once you confirm, the Treasury processes the redemption immediately, and the money is transferred to the bank account you have linked to TreasuryDirect. The transfer usually takes one to two business days. You'll receive a confirmation email with the transaction details and the amount deposited.

This is the fastest and simplest method if you have digital bonds. There are no fees, no waiting in line, and no risk of losing a paper bond.

Redeeming a bond by mail

If you can't get to a bank and don't have a TreasuryDirect account, you can mail the bond directly to the Federal Reserve. You'll need to fill out a form called FS Form 1522 (Statement Regarding Deceased Owners) or FS Form 1048 (Claim for Lost, Stolen, or Destroyed Savings Bond), depending on your situation. If the bond is simply being redeemed by the owner, you can mail it with a letter requesting redemption and include a copy of your ID.

Send the bond and form to the Federal Reserve Bank in your region. The address is on the Treasury website under "Redeem Savings Bonds by Mail." Include a return address and your phone number. Processing takes four to six weeks, and the Treasury will mail you a check or deposit the funds into your bank account if you provide account details.

This method is slower and carries a small risk that the bond could be lost in the mail, so it's best used only if the other options aren't available to you.

What happens if you've lost the physical bond

If you own a paper bond but can't find it, you have two options. First, check whether it's registered in your name through TreasuryDirect. If it is, you can redeem it online without the physical bond — the Treasury's records are what matter, not the paper itself. Log in and proceed as you would with any digital bond.

If the bond isn't in TreasuryDirect or you're unsure, you can request a replacement from the Treasury. Fill out FS Form 1048 and mail it to the Federal Reserve with a copy of your ID and proof that you own the bond (such as a purchase receipt or old tax return showing the bond). The Treasury will verify your ownership and issue a replacement bond, which you can then redeem or hold.

This process takes several weeks, so if you need the money soon, check TreasuryDirect first — that's usually faster.

Understanding the interest penalty for early redemption

If your bond is less than five years old, the Treasury withholds the last three months of interest when you redeem it. This is a penalty for cashing in early. For example, if a Series I bond has earned $50 in interest but is only four years old, you'll receive the principal plus $37.50 in interest; the Treasury keeps $12.50.

After five years, there's no penalty — you get all the interest you've earned. This is why many people wait until the five-year mark to redeem bonds if they don't need the money immediately. The difference can be meaningful on larger bonds.

Bonds continue to earn interest until they reach final maturity (30 years for both Series EE and Series I). After that, they stop earning anything, so there's no reason to hold them longer.

Taxes and what you'll receive from the Treasury

The interest you earn on a savings bond is subject to federal income tax. You do not pay tax on the principal — only on the interest. When you redeem the bond, the Treasury doesn't withhold taxes automatically; instead, you report the interest on your tax return.

At tax time, the Treasury will send you a 1099-INT form showing the interest you earned during the year on all your bonds. You'll use this form to report the income to the IRS. If you redeemed multiple bonds, the 1099-INT will show the total interest from all of them.

Some people choose to report the interest each year as it accrues rather than waiting until redemption, which can lower their tax bill in the year they redeem. Talk to a tax professional if you have questions about the best approach for your situation.

Frequently Asked Questions

Can I redeem a savings bond before it matures?

Yes, you can redeem a bond at any time after you've owned it for one year. However, if the bond is less than five years old, you'll lose the last three months of interest. After five years, you can redeem without any penalty.

What if my bank won't cash my bond?

Try another bank — most will cash Series EE and Series I bonds. If no local bank will do it, you can redeem through TreasuryDirect online or mail the bond to the Federal Reserve. The online method is fastest.

How do I know how much my bond is worth?

Go to the Treasury's Savings Bond Calculator on the TreasuryDirect website. Enter the bond series, denomination, and issue date, and it will show you the current value. You can also call the Treasury at 1-800-4US-BONDS.

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

No. Only the registered owner can redeem a bond. If you're unable to redeem it yourself, you'll need to add the other person as a co-owner through TreasuryDirect, or they can act as your legal representative with proper documentation.

What if I think my bond was never issued or registered?

Contact the Treasury directly at 1-800-4US-BONDS or visit the TreasuryDirect website to search for bonds in your name. If the bond exists but isn't in your TreasuryDirect account, you can link it or redeem it by mail with proof of ownership.