Where to redeem your bonds

You can redeem US savings bonds at most banks and credit unions, or directly through the US Department of the Treasury if you own them electronically. The method depends on whether your bonds are paper or digital.

For paper bonds, walk into any bank or credit union branch with your bond and a valid ID. Not every teller will be familiar with bonds, so ask to speak with someone in operations or the manager on duty. Some smaller branches may ask you to call ahead, but most major banks handle redemptions routinely. If your local bank declines, try a larger branch in your area or a different bank — there is no rule that you must use your own bank.

For electronic bonds held in TreasuryDirect (the Treasury's online system), you log into your account, select the bond you want to cash, and request redemption. The money lands in your linked bank account within a few business days. You never leave your house.

Key Takeaways

  • Paper bonds can be redeemed at any bank or credit union branch; electronic bonds are redeemed through your TreasuryDirect account online.
  • Series EE and I bonds have early redemption penalties if cashed before five years, and Series I bonds lose three months of interest if redeemed before five years.
  • You must wait until a bond reaches final maturity (30 years for most bonds) or you will owe federal income tax on the interest earned.
  • Bring your bond certificate and a valid photo ID to a bank; no appointment is needed, but calling ahead at smaller branches can save a trip.
  • The bank will give you cash or deposit the funds into your account on the spot for paper bonds; electronic redemptions take a few business days.

What you need to bring to the bank

For a paper bond, bring the physical certificate and a valid photo ID — a driver's license, passport, or state ID card. That is all. The teller will verify the bond is genuine, check that you are the registered owner or an authorized representative, and process the redemption.

If you are redeeming a bond on behalf of someone else (a deceased parent's estate, for example), bring the bond, your ID, and documentation proving you have the legal right to redeem it. This might be a power of attorney, a court order, or an executor's certificate. The bank will tell you what they need once you explain the situation.

For electronic bonds, you need only your TreasuryDirect login credentials. You do not need to print anything or visit a bank.

Penalties and interest loss for early redemption

Series EE bonds and Series I bonds both penalize you for cashing them too early. The exact penalty depends on which type you own and how long you have held it.

Series EE bonds lose three months of interest if redeemed before five years. If you bought the bond in January 2020 and redeem it in January 2024, you forfeit the interest you would have earned in October, November, and December 2023. After five years, there is no penalty — you get all the interest earned to date.

Series I bonds also lose three months of interest if redeemed before five years. After five years, you can redeem without penalty. However, if you hold an I bond longer than five years but redeem it before the bond reaches final maturity (30 years), you still lose the last three months of interest.

Series EE bonds issued before May 2005 and all older bond types may have different rules. Check the bond itself or call the Treasury's customer service line at 844-284-2676 if you are unsure of your bond's terms.

Tax on the interest you earned

When you redeem a bond, you owe federal income tax on all the interest it earned from the day you bought it. You do not pay tax on the principal — only on the gain. The bank does not withhold this tax; you report it yourself when you file your tax return.

If you bought a Series EE bond for $50 and it is now worth $75, you owe income tax on the $25 of interest. The tax rate depends on your overall income and tax bracket for that year.

You can defer paying tax on Series EE and I bond interest by not redeeming the bond until final maturity — but this is rarely practical, since most bonds mature at 30 years. A more common strategy is to redeem bonds in a year when your income is lower, which may put you in a lower tax bracket.

How the redemption works at the bank

Hand your bond and ID to the teller. They will examine the bond to confirm it is real, check the serial number, and verify that the registered owner matches your ID. This takes a few minutes.

The teller will then calculate the current value of the bond. The Treasury updates bond values monthly, and the bank has access to the current redemption value. They will tell you the amount you are receiving and ask how you want it — cash, a check, or a deposit to your account.

Most people choose to have it deposited directly into their bank account on the spot. If you want cash, the bank will count it out. If you want a check, they will write one and you can deposit it elsewhere. The entire process takes 10 to 15 minutes.

The bank will give you a receipt showing the bond's serial number, the redemption value, and the date. Keep this receipt for your records and for your tax return.

Redeeming bonds through TreasuryDirect online

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Click on "Manage My Securities" and find the bond you want to redeem in your holdings list.

Select the bond and click "Redeem." The system will show you the current value and ask you to confirm. Once you confirm, the redemption request is submitted. The Treasury processes it within one to three business days and deposits the money into the bank account you have linked to your TreasuryDirect account.

You will receive an email confirmation with the redemption details. Keep this for your records. The Treasury does not send a physical receipt, so the email is your proof of the transaction.

What happens if your bond is lost or stolen

If you own a paper bond and it is lost or damaged, contact the Treasury's Bureau of the Fiscal Service at 844-284-2676. They can issue a replacement bond if you can provide the serial number and proof of ownership. This process takes several weeks.

If your bond is stolen, report it to the Treasury immediately. They can flag the serial number so that if someone else tries to redeem it, the bank will refuse and contact authorities. You will still receive a replacement bond.

Electronic bonds in TreasuryDirect cannot be lost or stolen in the traditional sense because they exist only in the Treasury's system. However, if someone gains unauthorized access to your TreasuryDirect account, contact the Treasury right away to freeze your account and investigate.

Frequently Asked Questions

Can I redeem a bond before it matures?

Yes. Series EE and I bonds can be redeemed at any time after purchase, but you will lose three months of interest if you redeem before five years. Other bond types have different rules — check your bond or call the Treasury at 844-284-2676 to confirm.

Do I have to redeem the whole bond, or can I cash in part of it?

You must redeem the entire bond. You cannot split a single bond into smaller amounts. If you own multiple bonds, you can redeem some and keep others.

What if the bank says they cannot redeem my bond?

Some very small branches or banks unfamiliar with bonds may decline. Try a larger branch, a different bank, or redeem through TreasuryDirect if your bond is electronic. You can also mail the bond to the Treasury's Fiscal Service, though this takes longer.

Will the bank charge me a fee to redeem?

No. Banks do not charge a fee to redeem US savings bonds. The Treasury does not charge a fee either. If a bank tells you there is a fee, that is not standard practice — try a different bank.

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

At a bank, you get the money the same day — either as cash, a check, or a deposit to your account. Through TreasuryDirect, the deposit takes one to three business days after you submit the redemption request.