Where and how to redeem your savings bonds

You can cash in savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury if you prefer to handle it by mail. The fastest route is usually your own bank — most will cash them the same day if you bring the bonds in person with a valid ID. If you don't have a bank account, you can still redeem bonds at any financial institution that offers this service, even if you don't bank there.

The Treasury also runs an online redemption system called TreasuryDirect for Series I and Series EE bonds purchased after 2003. You can log into your account, request a redemption, and the money goes directly to your linked bank account within a few business days. Paper bonds purchased before that cutoff, or any bond you prefer to handle in person, require a trip to a bank or the mail-in route.

If you've lost a bond or it's damaged, the Treasury can still help you redeem it — you'll need to file a claim with proof of ownership, which takes longer but is possible. The key is that you have options depending on what's convenient for you and what type of bond you hold.

Key Takeaways

  • Most banks and credit unions will cash your savings bonds on the spot if you bring them in person with a valid ID, regardless of whether you have an account there.
  • Series I and Series EE bonds bought after 2003 can be redeemed online through TreasuryDirect without leaving home.
  • Paper bonds and older bonds must be cashed at a bank, credit union, or through the Treasury by mail.
  • You'll receive the full redemption value plus any accrued interest, and the bank will report the interest to the IRS on a Form 1099-INT.

What you need to bring to a bank

Bring the physical bond certificate itself and a valid government-issued ID — a driver's license, passport, or state ID card all work. If the bond is registered in someone else's name, that person needs to be present with their own ID, or you'll need a power of attorney document signed by them. The bank won't cash a bond for you if your name isn't on it and you can't prove you have the right to do so.

If you're cashing multiple bonds, bring them all at once. The teller will verify the bond numbers, check that they haven't been previously redeemed, and calculate the current value based on the issue date and current interest rates. This takes about 10 to 15 minutes in most cases.

Some banks may ask for additional information if the bond is very old or if there's any question about the registration. Having your Social Security number handy is useful, though you don't always need to provide it — the bank will ask if they need it for their records.

Redeeming bonds online through TreasuryDirect

If your Series I or Series EE bonds are registered in a TreasuryDirect account, you can redeem them without going anywhere. Log into your account at treasurydirect.gov, select the bonds you want to cash, and request the redemption. The money will be deposited into the bank account you have linked to your TreasuryDirect profile within one to three business days.

You can only redeem bonds this way if you purchased them directly from the Treasury through TreasuryDirect — not if you received them as a gift or inherited them from someone else. If you inherited bonds or received them as a gift, you'll need to either take them to a bank or mail them to the Treasury for redemption.

The online system shows you the exact redemption value before you confirm, so you know exactly how much you'll receive. There are no fees for redeeming through TreasuryDirect.

Mailing bonds to the Treasury

If you prefer not to visit a bank or don't have access to one, you can mail your bonds directly to the Bureau of the Fiscal Service, which handles Treasury securities. You'll need to fill out Form PD 1048, which is available on the Treasury website, and include it with your bonds in a secure envelope. Send everything to the address listed on the form — currently the Bureau of the Fiscal Service in Parkersburg, West Virginia.

Include a letter stating that you want to redeem the bonds and listing each bond's series, denomination, and serial number. Sign the letter and have your signature notarized — the bank or post office can do this for a small fee, usually $5 to $15. Mail everything via certified mail with return receipt so you have proof of delivery.

Processing takes two to four weeks from the time the Treasury receives your package. They'll mail you a check or deposit the funds directly to your bank account if you provide account information. This route is slower but works if you live far from any bank or prefer to handle it by mail.

What happens to the interest you've earned

When you redeem a savings bond, you receive the full face value plus all the interest it has earned since you bought it. That interest is taxable income in the year you cash the bond, and the bank or Treasury will report it to the IRS on a Form 1099-INT. You'll receive a copy of this form by January 31 of the following year.

If you've been deferring the tax on the interest — which is allowed with savings bonds — you'll owe it all in the year you redeem. Some people spread their redemptions across two tax years to stay in a lower tax bracket, though that's a decision to make with a tax professional. The key point is that you cannot avoid the tax; you can only choose when to pay it.

If the bond was issued to a child and you've been reporting the interest each year on your tax return, the redemption is straightforward — you just receive the value and report it as usual. If you haven't been reporting it, you'll owe back taxes plus interest, so it's worth checking your records before you cash a bond you've held for many years.

Redeeming bonds held in someone else's name

If a bond is registered only in someone else's name — a parent, grandparent, or other relative — that person must be the one to redeem it, or they must give you legal authority to do so. The simplest approach is for them to go to the bank with you and sign the back of the bond in front of the teller. The teller will verify their ID and process the redemption.

If the bond owner is deceased, you'll need to provide a death certificate and proof that you're the rightful heir or executor of their estate. The bank or Treasury will guide you through this process, but it takes longer than a standard redemption — usually several weeks. You may also need to go through probate, depending on the size of the estate and your state's laws.

If the bond owner is unable to go to the bank — due to illness, disability, or distance — you can use a power of attorney document. This must be signed by the bond owner in front of a notary, and it gives you the legal right to redeem the bond on their behalf. Bring the original power of attorney document and your ID to the bank.

Penalties for early redemption

Series EE bonds and Series I bonds have a penalty if you redeem them before five years have passed. If you cash an EE bond before five years, you lose the last three months of interest — meaning you get back your principal plus interest earned, minus three months' worth. Series I bonds have the same penalty. After five years, there's no penalty, and you can redeem whenever you want.

Series HH bonds, which are older and less common, have different rules — they mature after 20 years and must be redeemed by then or they stop earning interest. If you hold an HH bond past maturity, contact the Treasury to find out your options.

The penalty is automatic; the bank or Treasury will calculate it and deduct it from your redemption value. You'll see the adjusted amount before you confirm the redemption, so you know exactly what you're receiving.

Frequently Asked Questions

Can I cash a savings bond at any bank?

Most banks and credit unions will cash savings bonds, but not all — call ahead to confirm. Some smaller institutions or branches don't offer this service. If your bank won't do it, any other bank in your area should, even if you don't have an account there. You just need a valid ID and the bond itself.

What if I don't know the current value of my bond?

The Treasury website has a savings bond calculator where you enter the series, denomination, and issue date, and it tells you the current value. You can also ask the bank teller to calculate it for you when you bring the bond in — they have access to current interest rates and can tell you exactly what you'll receive before you sign anything.

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

You must redeem the entire bond — you cannot cash part of it and keep the rest earning interest. If you have multiple bonds, you can choose which ones to redeem and leave others alone, but each individual bond is an all-or-nothing transaction.

What if my bond is damaged or I've lost it?

Contact the Bureau of the Fiscal Service directly if your bond is lost, stolen, or damaged beyond recognition. You'll need to file a claim with proof of ownership — usually your purchase records or bank statements showing the purchase. Processing a lost or damaged bond claim takes several weeks and requires notarization, but the Treasury can still redeem it if you can prove you own it.

Will I get a check or direct deposit?

At a bank, you'll typically receive a check or have the funds deposited into your account if you're a customer there. Through TreasuryDirect online, the money goes directly to your linked bank account. If you mail bonds to the Treasury, you can request either a check or direct deposit — specify your preference on the form.