The basic steps to redeem a bond

To redeem a savings bond, you need to present it to a financial institution that handles bond redemptions — typically a bank or credit union where you have an account — along with a valid ID. The institution will verify the bond's serial number and current value, then pay you the amount owed. Most banks complete this in one transaction, though some require you to fill out a form first.

The process differs slightly depending on whether you own a paper bond or a digital bond held through the Treasury's TreasuryDirect system. Paper bonds require you to visit in person or mail them to a bank. Digital bonds can be redeemed entirely online through your TreasuryDirect account without leaving home.

Key Takeaways

  • Paper bonds must be redeemed at a bank or credit union in person or by mail, while digital bonds can be redeemed online through TreasuryDirect.
  • You cannot redeem a Series EE or Series I bond before five years have passed without losing the last three months of interest.
  • The bank or credit union will verify your bond and pay you its current value, which includes all accrued interest.
  • You will receive a 1099-INT form at tax time reporting the interest you earned, which counts as taxable income.

Redeeming paper bonds at a bank or credit union

Walk into any bank or credit union with your paper bond and a government-issued ID. Ask to speak with someone in customer service or operations — not a teller. Bring the bond itself; you cannot redeem it by phone or email. The employee will look up the bond's current value using its serial number and issue date, then ask you to sign the back of the bond in their presence.

The bank will then deposit the money into your account or give you a check. Some banks charge a small fee for this service, typically $5 to $15, though many waive it for account holders. If you do not have an account at that bank, call ahead to ask whether they redeem bonds for non-customers and what their fee is.

If you prefer not to visit in person, you can mail your bond to a bank. Include a letter requesting redemption, your signature on the bond, and a copy of your ID. Mail it to the bank's operations or customer service department, not a branch address. The bank will send you a check by mail, which usually takes one to two weeks after they receive it.

Redeeming digital bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the bond you want to redeem. Click the redemption option and confirm the transaction. The money will be deposited directly into the bank account you have linked to your TreasuryDirect account, usually within one to three business days.

You do not need to visit a bank or provide any paperwork. The entire process happens online and takes just a few minutes. This is the fastest and simplest way to redeem a bond if you own it digitally.

Understanding the penalty for early redemption

Series EE bonds and Series I bonds cannot be redeemed during the first five years you own them without a penalty. If you redeem before five years have passed, you lose the last three months of interest. For example, if you bought a bond 3 years ago and redeem it now, you receive the value as of 2 years and 9 months ago, not the current value.

After five years, you can redeem at any time without penalty and receive the full current value including all accrued interest. There is no time limit on how long you can hold a bond — Series EE bonds earn interest for 30 years, and Series I bonds earn interest for 50 years.

What happens to the interest you earned

When you redeem a bond, the interest you have earned is included in the amount you receive. That interest is considered taxable income in the year you redeem the bond. The bank or the Treasury will send you a Form 1099-INT at tax time showing how much interest you earned, and you must report it on your tax return.

If you own a bond jointly with another person, the 1099-INT will show the full amount of interest, and you and the co-owner will need to decide how to split the tax responsibility. Some people report it 50/50; others report it based on who actually owns the bond. Check with a tax professional if you are unsure how to report it.

What to do if you cannot find your bond

If you own a paper bond but cannot locate it, you can search the Treasury's records through the Treasury Hunt tool at treasuryhunt.treasurydirect.gov. Enter your Social Security number and the bond's series and denomination if you remember it. The tool will tell you whether the Treasury has a record of the bond in your name.

If the bond is found, you can file a claim with the Treasury to have it replaced or redeemed. This process takes several weeks and requires documentation proving you own the bond, such as purchase receipts or bank records. If you cannot find any documentation, contact the Treasury's customer service at 844-284-2676 to discuss your options.

Redeeming bonds owned by a minor or in an estate

If you own a bond for a minor child, you will need to redeem it on their behalf. Bring the bond, your ID, and the child's Social Security number to the bank. You do not need the child present. The interest earned will be reported on the child's tax return, not yours, which may result in lower taxes depending on the child's income.

If someone has died and left you a bond, you will need to provide the bank with a copy of the death certificate and proof that you are authorized to handle the estate — such as a will or court order naming you as executor. The bank will then redeem the bond and issue payment to the estate. The interest earned up to the date of death is reported on the deceased person's final tax return.

Frequently Asked Questions

Can I redeem part of a bond and keep the rest?

No. Bonds are redeemed as a whole unit. You cannot cash in half a bond or a portion of its value. You must redeem the entire bond at once.

What if the bank says they cannot redeem my bond?

Some smaller banks do not redeem bonds. If your bank declines, try another bank in your area or mail the bond to a larger bank that handles redemptions. You can also contact the Treasury directly at 844-284-2676 to ask about mailing the bond to them for redemption.

Do I have to redeem all my bonds at the same time?

No. You can redeem bonds one at a time, a few at a time, or all at once. Each bond is redeemed separately, so you can spread them out across different years if you want to manage your taxes.

What if I lost the paper bond but still have the receipt?

A receipt alone is not enough to redeem a bond. You need the physical bond itself. Use the Treasury Hunt tool to search for the bond in the Treasury's records, then file a claim to have it replaced before you can redeem it.

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

If you redeem in person at a bank, you receive a check or deposit the same day. If you mail a paper bond, expect one to two weeks after the bank receives it. If you redeem a digital bond through TreasuryDirect, the money appears in your linked bank account within one to three business days.