Where to redeem your bonds depends on what type you own
The place you redeem a government bond is almost always the same place you bought it or where it's currently held. If you own paper savings bonds issued before 2012, you redeem them at a bank or credit union. If you own electronic bonds (Series I, Series EE, or Treasury bonds bought after 2012), you redeem them through the Treasury Department's online system called TreasuryDirect.
The method matters because it determines how long the process takes and what documents you'll need. Paper bonds can sometimes be cashed the same day at a bank, while electronic bonds typically take three to five business days to reach your account after you request the redemption.
Before you redeem any bond, check whether you'll owe a penalty. Savings bonds held for less than five years carry a three-month interest penalty. Treasury bonds have no early-redemption penalty, but the price you receive depends on current interest rates — if rates have risen since you bought the bond, you'll receive less than you paid.
Key Takeaways
- Paper savings bonds are redeemed at a bank or credit union; electronic bonds are redeemed through TreasuryDirect online.
- Savings bonds held for fewer than five years lose three months of interest when redeemed early.
- You will need the bond itself (for paper bonds) or your TreasuryDirect login (for electronic bonds) to start the redemption.
- Electronic bond redemptions take three to five business days; paper bonds can sometimes be cashed same-day at a bank.
Redeeming paper savings bonds at a bank
Walk into any bank or credit union where you have an account and bring the physical bond certificate with you. You do not need to be a customer of that specific bank — most will cash a savings bond for anyone — but calling ahead is wise because some branches handle fewer bond redemptions and may ask you to come back when a manager is present.
The teller will verify the bond's serial number and your identity, then check the current redemption value. For bonds issued before 2012, the bank looks up the value in a table published monthly by the Treasury Department. The bank will then give you cash or deposit the money into your account, usually the same day.
Bring a photo ID and the bond certificate itself. If the bond is registered in someone else's name, that person must be present to sign it over, or you'll need a power of attorney document. If the bondholder has died, the bank will ask for a death certificate and may require probate documents depending on the bond's value and your state's rules.
Redeeming electronic bonds through TreasuryDirect
Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Click on the bond you want to redeem, select "Redeem," and confirm the amount. The system will show you the redemption value before you commit.
The money will be deposited into the bank account you linked to your TreasuryDirect account. This transfer takes three to five business days. You cannot redeem only part of an electronic bond — you must redeem the entire bond at once.
If you've lost access to your TreasuryDirect account, call the Treasury Department's customer service line at 844-284-2676. They can help you regain access or walk you through redemption by phone, though this route takes longer than redeeming online.
What happens if you redeem before the bond matures
Savings bonds come with a maturity date — usually 20 or 30 years from issue. You can redeem them before maturity, but there's a cost. If you redeem a savings bond before it has been held for five years, you lose the last three months of interest you earned. This is called the early redemption penalty.
For example, if a bond earned $50 in interest but you redeem it after four years, you receive only $50 minus three months' worth of interest. The exact amount depends on how much interest the bond was earning at the time you redeem it.
Treasury bonds (not savings bonds) have no early-redemption penalty, but the price you receive fluctuates with interest rates. If interest rates have risen since you bought the bond, its market value has fallen, and you'll receive less than you paid. If rates have fallen, you'll receive more. This is normal market behavior and not a penalty — it's simply how bond prices work.
Redeeming bonds held in someone else's name
If a bond is registered in your name but held by a parent, guardian, or other person, that person must bring it to the bank or authorize the redemption. They cannot redeem it without your permission unless they have a power of attorney or legal guardianship.
If a bond was issued as a gift in your name — for example, a grandparent bought a bond for a child — the person whose name appears on the bond must authorize the redemption. A parent or guardian cannot redeem it without the bondholder's signature, even if the bondholder is a minor. Some banks will allow a parent to sign on behalf of a minor, but policies vary.
If the bondholder has died, the person handling their estate can redeem the bond, but they'll need to provide a death certificate and may need probate documents. Contact the bank or TreasuryDirect to learn what your state requires.
Replacing a lost or damaged bond certificate
If you have a paper bond but it's damaged, faded, or torn, most banks will still redeem it if the serial number is legible and the bond's authenticity can be verified. Bring it in and ask — the teller can check whether it's redeemable as-is.
If the bond is lost or completely illegible, you can request a replacement from the Treasury Department. Call 844-284-2676 or visit treasurydirect.gov and select "Replace a Lost Bond." You'll need to provide the bond's serial number (if you have it), the issue date, and the original purchase amount. The Treasury Department will verify your ownership and issue a replacement, though this process takes several weeks.
For electronic bonds held in TreasuryDirect, there is no physical certificate to lose. Your bonds exist only in your online account, so as long as you can log in, you can redeem them.
What to expect after you redeem
If you redeemed a paper bond at a bank, you should have the money immediately or within one business day. If you chose a deposit instead of cash, check your account to confirm the money arrived.
If you redeemed an electronic bond through TreasuryDirect, the money will appear in your linked bank account within three to five business days. You'll receive a confirmation email from TreasuryDirect showing the redemption date and amount.
The redemption is final once completed. You cannot undo it or change your mind. If you made a mistake — for example, you redeemed the wrong bond — you would need to buy a new bond with the proceeds, which is a separate transaction.
Frequently Asked Questions
Can I redeem only part of a bond?
No. Paper savings bonds must be redeemed in full. Electronic bonds in TreasuryDirect also must be redeemed in their entirety — you cannot split them. If you need only part of the money, you'll receive the full redemption value and will need to manage the extra funds yourself.
What if my bank won't redeem my savings bond?
Some banks, especially smaller branches, may not keep the redemption tables on hand or may be unfamiliar with older bonds. Try a different bank or credit union in your area. You can also mail the bond to the Treasury Department with a redemption request form, though this takes several weeks. Call 844-284-2676 for mailing instructions.
Do I have to pay taxes on the money I receive?
Yes. The interest earned on the bond is subject to federal income tax. You do not owe tax on the original amount you paid — only on the interest. The bank or TreasuryDirect will not withhold taxes automatically, so you'll owe the tax when you file your return. Keep your redemption confirmation for your records.
How do I know the redemption value before I redeem?
For paper bonds, the bank will tell you the value before you complete the transaction. For electronic bonds, TreasuryDirect shows the redemption value on your screen before you confirm. You can also check the Treasury Department's website or call 844-284-2676 to look up a paper bond's current value before visiting the bank.
What if I'm redeeming a bond for someone who is deceased?
Bring the death certificate and the bond to a bank, or contact TreasuryDirect with the death certificate and proof that you are the executor or beneficiary of the estate. The bank or Treasury Department will verify your authority to redeem the bond. Requirements vary by state and by the bond's value, so call ahead to learn what documents you'll need.