You can redeem savings bonds online through TreasuryDirect, the U.S. Treasury's official website, if you own Series EE or Series I bonds issued after 2003

The fastest way to cash in a savings bond is through your TreasuryDirect account at treasurydirect.gov. You log in, select the bond you want to redeem, and the money lands in your linked bank account within one to three business days. The process takes about five minutes once you have your account set up.

Older bonds—those issued before 2003—cannot be redeemed online. You will need to mail them to a Federal Reserve Bank or take them to a bank that handles savings bond redemptions in person. If your bond is still earning interest and you redeem it early, you may lose the last three months of interest, depending on the bond type and how long you have held it.

Key Takeaways

  • Series EE and Series I bonds issued after 2003 can be redeemed online through TreasuryDirect if you own them in your account.
  • You need a TreasuryDirect account linked to a U.S. bank account to redeem bonds online.
  • Redemption takes one to three business days once you submit the request, and the money goes directly to your bank.
  • Early redemption of Series EE bonds costs you the last three months of interest; Series I bonds have no early-redemption penalty.
  • Bonds issued before 2003 must be redeemed by mail or in person at a bank or Federal Reserve office.

Setting up your TreasuryDirect account

Go to treasurydirect.gov and click "Open an Account." You will need a Social Security number, email address, and a U.S. bank account (checking or savings). The site will verify your identity by asking questions about your credit history—this is instant and does not affect your credit score.

Once your account is created, you can link your bank account for deposits and withdrawals. TreasuryDirect uses this account to send your redemption money. Make sure the account is in your name or jointly held with the person whose Social Security number you used to open the TreasuryDirect account.

If you already own paper savings bonds, you do not need to do anything special to redeem them online. You simply redeem them through your account without converting them first.

Locating your bonds in TreasuryDirect

Log into your TreasuryDirect account and go to "ManageDirect." You will see a list of all bonds held in your account. The display shows the bond series (EE or I), the issue date, the current value, and the next interest accrual date.

If you own paper bonds issued before 2003, they will not appear in this list. You cannot redeem those online. If you own paper bonds issued in 2003 or later, you can transfer them into your TreasuryDirect account first, then redeem them online. To do this, you will need to mail the physical bonds to the Treasury with a form, which takes several weeks—so this route is slower than redeeming paper bonds in person at a bank.

Submitting your redemption request

In ManageDirect, select the bond you want to redeem and click "Redeem." The system will show you the redemption value—the principal plus all interest earned to date, minus any early-redemption penalty if one applies. Review this amount carefully before confirming.

Click "Submit" to send the redemption request. You will receive a confirmation number on screen and via email. The Treasury processes redemptions in the order they are received, and the money will be deposited into your linked bank account within one to three business days.

You can redeem one bond at a time or multiple bonds in a single session. There is no limit to how many bonds you can redeem, and you can redeem partial amounts if you own a bond in a denomination larger than what you need.

Understanding early-redemption penalties

Series EE bonds lose three months of interest if you redeem them before five years have passed. If you redeem after five years, there is no penalty. For example, if you bought a Series EE bond on January 1, 2020, and redeem it on January 1, 2025, you get the full value. If you redeem it on December 1, 2024, you lose the interest that would have accrued from September 1 to December 1, 2024.

Series I bonds have no early-redemption penalty at any time. However, if you redeem a Series I bond before it has been held for five years, you lose the last three months of interest—the same as Series EE bonds. After five years, you receive the full value with no penalty.

The TreasuryDirect system shows you the penalty amount before you confirm the redemption, so you will know exactly what you are receiving.

What happens after you submit your redemption

Once your redemption is processed, the bond is removed from your TreasuryDirect account and the money is sent to your bank. You will see the deposit in your account within one to three business days, depending on your bank's processing speed. Keep your confirmation number for your records.

The Treasury sends a 1099-INT form to you and the IRS at tax time if your bond interest for the year exceeds $10. You will owe federal income tax on the interest earned, though not on the principal you originally invested. Some states also tax savings bond interest, so check your state's rules.

Redeeming bonds you inherited or received as a gift

If someone gave you a savings bond or left you one in their will, you can redeem it online only if it is already registered in your TreasuryDirect account. If the bond is in someone else's name, you cannot redeem it online—you will need to go through the paper redemption process at a bank or Federal Reserve office, and you may need to provide proof of ownership or inheritance.

If you inherited a bond from a deceased person, contact the bank or Federal Reserve office handling savings bond redemptions in your area. They can walk you through the steps, which usually involve providing a death certificate and proof that you are the beneficiary.

Frequently Asked Questions

Can I redeem a savings bond online if I lost the paper certificate?

If the bond is registered in your TreasuryDirect account, yes—you do not need the physical certificate. If the bond is not in your account and you lost the paper, contact the Treasury at 844-284-2676 or visit treasurydirect.gov to report it lost and request a replacement.

What if my bank account information changes after I redeem a bond?

Update your bank account in TreasuryDirect before you submit the redemption request. If you redeem and then change your account, the money may be sent to the old account. Contact your bank immediately if this happens—they can usually redirect the deposit.

Can I redeem a bond partially, or do I have to cash the whole thing?

You can redeem the full value or request a partial redemption if the bond is large enough. TreasuryDirect will show you the minimum amount you can redeem. The remaining balance stays in your account and continues to earn interest.

Do I have to pay taxes on the interest when I redeem?

You owe federal income tax on the interest earned, which is reported on a 1099-INT form if interest exceeds $10 for the year. You do not owe tax on the principal. Some states tax savings bond interest as well—check your state's tax rules.

What if TreasuryDirect says my bond cannot be redeemed online?

This usually means the bond was issued before 2003 or is in someone else's name. Redeem it in person at a bank or Federal Reserve office, or by mail. Call 844-284-2676 to find the nearest location that handles savings bond redemptions.