You can redeem paper savings bonds at most banks, through the Treasury Department, or by mail

Paper savings bonds can be cashed in at any bank or credit union that handles savings bonds — most do, though you should call ahead to confirm. You can also redeem them directly through the U.S. Department of the Treasury by mail or in person at a Federal Reserve Bank. The fastest route is usually your bank, since you can walk in with the bonds and leave with a check the same day.

Before you redeem, check whether your bonds have reached final maturity. Series EE bonds stop earning interest after 30 years; Series I bonds stop after 30 years as well. You can cash them in before that point, but you will lose the last three months of interest as a penalty if the bond is less than five years old. The bond itself will tell you the issue date and series — look at the front.

You will need the physical bonds themselves (not a copy), a valid government-issued ID, and proof that you own them. If someone else's name is on the bond, you will need that person present with their ID, or a legal document showing you have the right to redeem it.

Key Takeaways

  • Most banks and credit unions will cash paper savings bonds on the spot if you bring the bonds and a valid ID.
  • Series EE and Series I bonds lose three months of interest if redeemed before five years old, so check the issue date first.
  • If the bond is in two names, both owners must be present with ID, or you need a court order or death certificate showing you have the right to redeem it.
  • The Treasury Department will redeem bonds by mail if your bank will not, though this takes two to four weeks.

Redeeming at your bank or credit union

Call your bank first and ask whether they redeem savings bonds. Most do, but some smaller institutions or online-only banks do not. If they do, ask what documents you need to bring and whether they charge a fee — most do not, but it is worth confirming.

Bring the bonds themselves, your valid ID (driver's license, passport, or state ID), and any other documents the bank requested. If the bond is in two names, both people must be present with their IDs. If one person has died or is unable to come in, bring the death certificate or a power of attorney document that shows you have the legal right to redeem the bond.

The bank will inspect the bonds to confirm they are genuine, verify your identity, and process the redemption. You will receive a check or deposit to your account, depending on what the bank offers. This usually happens the same day or within one business day.

Redeeming through the Treasury Department by mail

If your bank will not redeem the bonds, you can mail them to the Treasury Department's Bureau of the Fiscal Service. Download Form PD F 1522 from the Treasury website, fill it out, and mail it along with the bonds and a photocopy of your ID to the address listed on the form.

Include a cover letter stating your name, address, phone number, and the total value of the bonds you are redeeming. Do not send the original bonds by regular mail — use certified mail with return receipt so you have proof of delivery. The Treasury will send you a check by mail, which usually takes two to four weeks from the time they receive your package.

Keep a record of the tracking number and the list of bonds you sent. If the check does not arrive within six weeks, contact the Treasury Department's customer service line to trace the payment.

Redeeming in person at a Federal Reserve Bank

You can also walk into any Federal Reserve Bank with your bonds and ID and redeem them on the spot. There are 12 Federal Reserve Banks across the United States, located in major cities. Find the one nearest you on the Federal Reserve's website.

Bring the bonds, your valid ID, and any documents showing you have the right to redeem them if the bond is in someone else's name or if an owner has died. You will receive a check the same day. This is the fastest option if you live near a Federal Reserve Bank, but most people do not, so the bank option is usually more practical.

What happens if you lose the bonds or they are damaged

If your bonds are lost, stolen, or too damaged to read, you can still redeem them, but the process is longer. Contact the Treasury Department's customer service line and explain what happened. They will ask you for the series, denomination, and issue date of the bonds — this information may be in old bank statements, tax records, or correspondence from when you bought them.

The Treasury will search their records to confirm the bonds exist and that you own them. If they find a match, they will issue a replacement bond or a check for the current value. This can take several weeks. If you cannot provide enough information to identify the bonds, the Treasury may not be able to help you recover them.

Understanding the interest penalty for early redemption

If your bond is less than five years old, you will lose the last three months of interest when you redeem it. This means if a Series EE bond has earned $100 in interest but you redeem it at four years and six months, you will receive the original purchase price plus $75 in interest, not $100.

Series I bonds have the same rule: redeem before five years and you lose three months of interest. After five years, you can redeem without penalty. If your bond is older than five years, there is no penalty no matter when you redeem it.

The bank or Treasury will calculate this automatically — you do not have to do anything. The check or deposit you receive will already have the penalty applied.

Tax reporting when you redeem

When you redeem a savings bond, the interest you earned is subject to federal income tax. You do not pay tax when you redeem — you report it on your tax return for the year you cashed in the bond.

The Treasury Department does not send you a 1099 form automatically. You are responsible for tracking the interest earned and reporting it yourself. To find out how much interest your bond earned, check the bond's maturity value (printed on the bond) and subtract what you originally paid for it.

If you bought the bond through a payroll savings plan, your employer may have records of the purchase price. If you bought it at a bank or through TreasuryDirect, look for old statements or receipts. Keep these records for your tax file.

Frequently Asked Questions

Can I redeem a savings bond if someone else's name is on it?

Only if that person is present with their ID, or if you have a legal document like a power of attorney or death certificate showing you have the right to redeem it. The bank or Treasury will not cash it otherwise, even if you are a family member.

What if my bank says they do not redeem savings bonds?

You can redeem by mail through the Treasury Department using Form PD F 1522, or visit a Federal Reserve Bank in person if one is near you. The mail route takes two to four weeks; the Federal Reserve Bank is same-day.

Do I have to pay taxes when I redeem a savings bond?

You do not pay taxes at redemption, but you must report the interest on your federal tax return for the year you cashed it in. The interest is taxable income. You are responsible for calculating and reporting it yourself — the Treasury does not send a form.

What if my bond is damaged or I cannot read the information on it?

Contact the Treasury Department and provide whatever information you have: the series, denomination, and issue date. They will search their records to confirm you own it. If they find a match, they will issue a replacement or check. This takes several weeks.

Will I lose interest if I redeem my bond early?

Yes, if the bond is less than five years old. You will lose the last three months of interest. After five years, you can redeem without any penalty. The bank or Treasury calculates this automatically.