How to Redeem a U.S. Savings Bond

Where to redeem your savings bond depends on the bond type and where you hold it

If you own a paper Series EE or I bond, you can redeem it at most banks and credit unions — call ahead to confirm they handle savings bonds, since not all do. If your bond is held electronically through TreasuryDirect (the U.S. Department of the Treasury's online platform), you redeem it directly through your TreasuryDirect account without visiting a bank. The process differs slightly between paper and electronic bonds, and the rules around when you can redeem without penalty vary by bond series and age.

You cannot redeem a savings bond before it reaches final maturity, though most bonds can be redeemed after one year. Redeeming before five years have passed triggers a three-month interest penalty on Series EE and I bonds — you lose the last three months of interest earned. After five years, you can redeem without penalty.

Key Takeaways

• Paper bonds redeem at banks and credit unions; electronic bonds redeem through your TreasuryDirect account online.
• Series EE and I bonds can be redeemed after one year, but redeeming before five years costs you three months of interest.
• You will need the bond's serial number and proof of ownership or authorization to redeem at a bank.
• The bank or TreasuryDirect deposits the redemption amount (principal plus accrued interest) into your account within a few business days.
• Redeeming a bond triggers a 1099-INT tax form if the interest earned exceeds $10 in that calendar year.

Redeeming a paper savings bond at a bank or credit union

Bring the physical bond certificate and a valid government-issued ID to your bank or credit union. The teller will verify the bond's serial number, confirm you are the registered owner or an authorized representative, and process the redemption. Some banks require you to have an account with them; others will redeem bonds for non-customers, though they may charge a small fee.

The bank will pay you the current redemption value — the original purchase price plus all interest accrued to that date. If you are redeeming before the five-year mark, the bank will deduct the three-month interest penalty. The funds typically appear in your account within one to three business days if you deposit the proceeds there, or you can receive a check.

If you have lost the physical bond, contact the Treasury Department's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov to report it and request a replacement. You will need to provide the bond's series, denomination, and serial number if you have it.

Redeeming an electronic bond 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 "Redeem" and confirm the transaction. TreasuryDirect will show you the redemption value before you finalize, so you can see exactly what you will receive.

The redemption amount deposits into the bank account linked to your TreasuryDirect account within two to three business days. You cannot choose to receive a check; the money goes directly to your bank. If you need to change the linked account, update it in your TreasuryDirect profile before you redeem.

If you forget your TreasuryDirect password, use the "Forgot Password" link on the login page. If you cannot recover your account, call the TreasuryDirect customer service line at 844-284-2676 for help regaining access.

Understanding the three-month interest penalty

Series EE and I bonds redeemed before five years have passed lose three months of accrued interest. This penalty applies whether you redeem at year one or year four — the amount lost is always three months' worth of interest at the rate your bond earned during the period you held it. Series HH bonds (no longer sold but still held by some owners) have different rules and do not carry this penalty.

The redemption value you receive already has the penalty subtracted. The bank or TreasuryDirect will not show you a separate deduction; the amount displayed is what you actually get. If you are uncertain whether the penalty applies to your specific bond, ask the bank teller or contact TreasuryDirect before you redeem.

Tax reporting when you redeem

The interest you earn on a savings bond is subject to federal income tax, though it is exempt from state and local tax. When you redeem, you do not pay tax at that moment — you report the interest on your tax return for the year you redeem. If the total interest earned on the bond exceeds $10 in the calendar year you redeem it, the bank or TreasuryDirect will send you a 1099-INT form by January 31 of the following year.

You are responsible for reporting the interest even if you do not receive a 1099-INT (for example, if interest was under $10). Keep records of the bond's purchase price and redemption value so you can calculate the interest earned. If you redeemed the bond in a previous year and deferred reporting the interest, you can still report it in the year of redemption — you do not have to report it in the year you purchased the bond.

What to do if you cannot locate your bond or account

If you own a paper bond but cannot find it, contact the Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov to report it lost or destroyed. You will need to provide as much information as you can: the series (EE, I, HH), the denomination, the issue date, and the serial number if you have it. The bureau can search their records and issue a replacement certificate.

If you purchased a bond through TreasuryDirect years ago and no longer remember your login, call 844-284-2676 to verify your identity and regain access to your account. Have your Social Security number, date of birth, and the email address you used to register ready. Once your account is restored, you can redeem through the website.

Frequently Asked Questions

Can I redeem a savings bond before one year has passed?

No. All U.S. savings bonds must be held for at least one year before redemption. If you need the money sooner, you will have to wait or explore other options.

What happens if I redeem my bond right at the five-year mark?

If you redeem exactly at five years, you do not lose the three-month interest penalty — the penalty applies only if you redeem before five years have passed. Redeeming on or after the five-year anniversary means you receive the full accrued interest.

Do I have to redeem the entire bond, or can I redeem part of it?

You must redeem the entire bond. You cannot cash in a portion of a single bond certificate. If you own multiple bonds, you can choose which ones to redeem and leave others untouched.

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

Not all banks handle savings bond redemptions. Try another bank or credit union in your area, or contact the Bureau of the Fiscal Service at 844-284-2676 for a list of redemption agents near you. You can also mail the bond to the Treasury Department, though this takes longer.

Will redeeming a bond affect my taxes or benefits?

Redeeming a bond itself does not affect your taxes — only the interest you earned is taxable income. If you receive means-tested benefits (like Supplemental Security Income), the redemption proceeds may count as income or assets depending on the program rules. Check with your benefits administrator before you redeem if you are concerned.