How to Cash In Your US Savings Bonds

Where to cash your savings bonds depends on the bond type and amount

You can turn in US savings bonds at a bank, credit union, or the US Treasury, depending on which you own and how much you're cashing. Paper bonds (Series EE, I, or older series) go to a financial institution or the Treasury. Digital bonds held in TreasuryDirect go directly through your online account. The fastest route for most people is their own bank, which can process the transaction in minutes if the bond has matured and you have proper ID.

The method also depends on whether your bond has reached its final maturity date. Bonds stop earning interest at a set point — Series EE bonds after 30 years, Series I bonds after 30 years, older paper bonds at varying dates. You can cash a bond before maturity if you need the money, but you'll lose the last three months of interest as a penalty.

Key Takeaways

• Paper savings bonds can be cashed at most banks and credit unions without an account, but you'll need a government-issued ID and proof of ownership.
• Digital bonds in TreasuryDirect are redeemed through your online account and arrive in your linked bank account within one to three business days.
• Cashing a bond before its final maturity date costs you the last three months of accrued interest as a penalty.
• Bonds owned by minors or in trust require the owner or trustee to be present in person at a bank, not just the person named on the bond.
• The Treasury will not cash bonds by mail; you must go in person to a bank, credit union, or Federal Reserve branch, or use TreasuryDirect online.

Cashing paper bonds at a bank or credit union

Walk into any bank or credit union with your paper bond, a government-issued ID (driver's license, passport, or state ID), and proof you own the bond. You do not need an account at that institution. The teller will verify the bond's serial number, check that it has matured or confirm you understand the three-month interest penalty if it hasn't, and process the redemption. Most banks complete this in under ten minutes.

If the bond is registered to someone else — a parent, grandparent, or former spouse — that person must be present in person with their ID. If the bond is in a trust or estate, bring the trust document or letters testamentary. A minor cannot cash a bond alone; the parent or guardian must come in person. Banks will not accept power of attorney or notarized letters for savings bond redemptions, so the actual owner must be there.

Some credit unions and smaller banks may ask you to call ahead, especially if you're cashing a large number of bonds or bonds from an older series. This is not required by law, but it helps them have a teller trained in the process ready for you.

Redeeming digital bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov, navigate to "Manage My Securities," and select the bond you want to redeem. Click "Redeem" and confirm the transaction. The money will be deposited into the bank account you linked to your TreasuryDirect account within one to three business days. There is no fee, and you can redeem bonds at any time of day.

Before you redeem, TreasuryDirect will show you the current value of the bond, including any accrued interest. If the bond has not reached its final maturity date, the system will display the three-month interest penalty and the net amount you'll receive. You must confirm you understand this before the redemption goes through.

If you do not have a TreasuryDirect account but own digital bonds, you can set one up at treasurydirect.gov using your Social Security number and a valid email address. You'll need to link a bank account for deposits. If you've lost access to your account, call the TreasuryDirect customer service line at 844-284-2676 to reset your password or recover your account.

What to do if your bond has matured or you're unsure of its status

Series EE bonds stop earning interest 30 years after issue. Series I bonds also stop earning interest after 30 years. Older paper bonds — Series E, Series H, and others — have different final maturity dates; some stopped earning interest decades ago. You can still cash a matured bond at any time, but it will not earn any additional interest.

To find out when your bond matures, look at the issue date printed on the bond itself. Add 30 years for Series EE and I bonds. For older series, you can search the Treasury's Savings Bond Calculator at treasurydirect.gov/BC/SBCPrice, which will tell you the current value and maturity date. If you've lost the bond or cannot find the issue date, the Treasury can look it up if you provide the bond's serial number and your Social Security number.

Cashing a bond before final maturity costs you three months of interest. A Series I bond worth $1,000 that you redeem early will pay you the value minus three months of accrued interest. This penalty applies whether you cash the bond at a bank or through TreasuryDirect.

Cashing bonds registered to a deceased person

If the bond owner has died, the person settling the estate (the executor or administrator named in the will, or the next of kin if there is no will) can cash the bond. Bring the bond, your government-issued ID, and either the death certificate or a certified copy of the will or letters testamentary to a bank.

Some banks will ask for a certified copy of the death certificate; others will accept an uncertified copy. Call ahead to confirm what your bank needs. If the bond is in a TreasuryDirect account, the executor or administrator can contact TreasuryDirect at 844-284-2676 with the death certificate to transfer the account or redeem the bonds.

Cashing bonds owned jointly or in trust

If a bond is registered to two people (for example, "John Smith or Jane Smith"), either person can cash it alone without the other's permission or presence. If it says "and" instead of "or," both owners must be present in person with ID.

Bonds held in a revocable living trust can be cashed by the trustee with a copy of the trust document. Bonds in an irrevocable trust require the trustee and sometimes the beneficiary; ask your bank what they need. Bonds in a custodial account for a minor (UTMA or UGMA) can be cashed only by the custodian, not the minor, until the minor reaches the age of majority in your state.

What happens after you cash the bond

If you cashed the bond at a bank, the money is deposited into your account or given to you in cash immediately. If you redeemed it through TreasuryDirect, the deposit arrives within one to three business days. You will receive a 1099-INT form in January of the following year reporting the interest you earned on the bond during the year it was redeemed. You must report this interest on your federal income tax return.

The interest on savings bonds is subject to federal income tax but exempt from state and local income tax. If you used the bond to pay for education (tuition or fees at an accredited school), you may be able to exclude some or all of the interest from federal tax under the Education Savings Bond Program, but you must meet specific income limits and file Form 8815 with your tax return.

Frequently Asked Questions

Can I cash a savings bond before it matures?

Yes, but you lose the last three months of interest as a penalty. For example, if a bond is worth $1,050 and you redeem it early, you receive $1,000. You can redeem a Series EE or I bond any time after you've owned it for one year.

What if I lost my paper bond or can't find it?

Contact the Treasury at 844-284-2676 or visit treasurydirect.gov. Provide your Social Security number and the bond's serial number if you have it. The Treasury can verify ownership and issue a replacement or process a redemption without the physical bond.

Do I have to pay taxes on the interest when I cash the bond?

Yes, the interest is subject to federal income tax in the year you redeem the bond. You'll receive a 1099-INT form. State and local income tax do not apply to savings bond interest. If the bond was used for education expenses, you may be able to exclude some interest under specific rules.

Can someone else cash my bond if I give them permission?

No. The person named on the bond must be present in person with a government-issued ID. Power of attorney and notarized letters are not accepted for savings bonds. The only exception is if the bond is registered "or" to two people, in which case either can redeem it alone.

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

One to three business days. The money goes to the bank account linked to your TreasuryDirect account. Weekends and federal holidays may extend the timeline.