Where to redeem your savings bond

You can redeem a U.S. savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether you have the physical bond or own it electronically.

If you hold a paper bond, walk into any bank or credit union branch with the bond and a valid ID. Most institutions will cash it on the spot, though some may ask you to have an account with them. Call ahead if you are unsure—many banks will tell you their policy over the phone.

If your bond is registered electronically through TreasuryDirect (the Treasury's online system), you must redeem it through that same system. You cannot take an electronic bond to a bank. Log into your TreasuryDirect account, select the bond you want to cash, and request the redemption. The Treasury deposits the money directly into your bank account within one to three business days.

Key Takeaways

  • Paper bonds can be cashed at most banks and credit unions with just your ID, while electronic bonds must be redeemed through TreasuryDirect online.
  • Series EE and I bonds must reach their final maturity date (30 years from issue) before you can redeem them without penalty, though you can redeem them penalty-free after five years.
  • If you redeem a Series I bond before five years have passed, you lose the last three months of interest as a penalty.
  • The Treasury sends the redemption money to your bank account within one to three business days if you redeem electronically.
  • You will owe federal income tax on the interest your bond earned, though you may owe no state or local tax.

When you can redeem without a penalty

The rules differ by bond type, but the key threshold is five years. If you redeem a Series EE or Series I bond before you have held it for five years, you forfeit the last three months of interest. This is not a fee—it is a loss of earnings. After five years, you can redeem at any time without this penalty.

Series HH bonds (no longer sold, but still held by many people) have different rules: you can redeem them at any time after six months without penalty. If you redeem before six months have passed, you lose the last three months of interest, just like EE and I bonds.

All bonds reach a final maturity date—30 years from the issue date for EE and I bonds. After that date, they stop earning interest, and you should redeem them. The Treasury will not automatically cash them, so the money sits idle if you do not act.

What happens if you redeem early

Redeeming before the five-year mark costs you. If you bought a Series I bond on January 1, 2023, and redeem it on December 1, 2024 (less than two years in), you lose three months of interest. The Treasury calculates what you earned and subtracts those three months before paying you.

This penalty applies only to bonds redeemed before five years have passed. Once you cross the five-year line, there is no penalty no matter when you redeem. Many people hold bonds past five years simply because they have forgotten about them, not because they are locked in.

If you are facing a financial emergency and need the money, redeeming early may still be the right choice—you keep most of your earnings and get the cash you need. The three-month interest loss is real but usually small compared to the total value of the bond.

How to redeem a paper bond at a bank

Bring the physical bond and a valid government ID (driver's license, passport, or state ID) to any bank or credit union branch. You do not need to have an account there, though some institutions prefer it. Ask to speak with a teller or customer service representative and tell them you want to redeem the bond.

The teller will verify the bond's serial number, check that it has reached the five-year mark if applicable, and confirm your identity. They will then issue you a check or deposit the funds directly into an account you provide. The whole process usually takes 10 to 15 minutes.

If the bond is registered in someone else's name, that person must be present with their ID, or you will need a power of attorney document or a court order. If the bond owner has passed away, you will need to provide a death certificate and proof that you are authorized to redeem it (usually through a will or estate documents).

How to redeem an electronic bond through TreasuryDirect

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

Once logged in, go to "Manage My Securities" and find the bond you want to redeem. Click on it and select "Redeem." The system will ask you to confirm the redemption and show you the amount you will receive. Once you confirm, the request is submitted.

The Treasury processes the redemption and deposits the money into the bank account you have on file. This usually takes one to three business days. You will receive an email confirmation once the money has been sent. Keep this confirmation for your records.

Tax reporting and what you owe

When you redeem a savings bond, the interest you earned is subject to federal income tax. You do not pay tax on the original amount you invested—only on the earnings. The Treasury does not withhold tax automatically, so you will owe the tax when you file your federal return.

You have two choices for when to report the interest. You can report it in the year you redeem the bond, or you can report it in the year the bond was issued and report interest each year as it accrues. Most people choose to report it all in the year of redemption, which is simpler if you are cashing in a bond you have held for many years.

Series I bonds and Series EE bonds are exempt from state and local income tax in most states. Series HH bonds are also exempt. Check your state's tax rules if you live in a state with income tax, but in most cases you will owe only federal tax.

The Treasury does not send you a 1099 form automatically. You are responsible for reporting the interest on your tax return. If you are unsure how much interest you earned, TreasuryDirect shows the current value of your bond—subtract what you paid for it to find the interest.

What to do if you lost your paper bond

If you have a paper bond but cannot find it, contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov. You will need to provide the bond's serial number, issue date, and series (EE, I, or HH). If you do not have these details, provide as much information as you can remember.

The Treasury can search their records and issue a replacement bond or process a redemption without the physical document. This process takes longer than walking into a bank with the bond in hand—usually several weeks—but it is possible. You will need to prove your identity and ownership of the bond.

If the bond was issued in someone else's name and you are trying to redeem it as their heir or representative, bring documentation of your relationship and authority to act on their behalf. A death certificate, will, or court order may be required.

Frequently Asked Questions

Can I redeem a savings bond before it reaches five years old?

Yes, but you will lose the last three months of interest if you redeem before five years have passed. After five years, you can redeem at any time without this penalty. If the bond has not yet matured (reached 30 years), you can still cash it in.

What if my savings bond is in someone else's name?

The person whose name is on the bond must be present with a valid ID to redeem it. If that person has passed away, you will need a death certificate and legal proof that you are authorized to redeem it, such as a will or court order naming you as executor or heir.

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

If you redeem a paper bond at a bank, you usually get a check or deposit on the spot. If you redeem electronically through TreasuryDirect, the Treasury deposits the money into your bank account within one to three business days. Direct redemption through the Treasury by mail takes several weeks.

Do I have to pay taxes on the interest from my savings bond?

Yes, the interest is subject to federal income tax. You report it on your tax return in the year you redeem the bond (or the year it was issued, depending on which method you choose). Series I and EE bonds are exempt from state and local income tax in most states.

What if I do not know how much my bond is worth?

If it is an electronic bond, log into TreasuryDirect and check the current value. If it is a paper bond, the bank will tell you the current value when you bring it in to redeem. You can also call the Treasury at 844-284-2676 and provide the bond's serial number and issue date.