Your bank is usually the fastest place to cash a savings bond

Most banks and credit unions will cash savings bonds for you on the spot if you have an account there. Walk in with your bond, your ID, and your account number. The teller will verify the bond's serial number, check that it has reached its issue date (you cannot cash it before then), and deposit the money into your account or hand you cash. This takes minutes.

Not every bank does this — call ahead or ask at the teller window. Some banks limit it to account holders only. Others will cash bonds but charge a small fee, usually $5 to $10. A few large banks like Bank of America, Chase, and Wells Fargo generally cash them without fees for customers, but policies vary by branch.

If you do not have a bank account or your bank refuses, you have other routes. But the bank is the path most people take because it is immediate and costs nothing if you already bank there.

Key Takeaways

  • Your own bank or credit union will usually cash savings bonds in minutes if you have an account there and bring your ID.
  • The Federal Reserve Banks and the Treasury Department's Bureau of the Fiscal Service will cash bonds by mail, but the process takes one to three weeks.
  • You cannot cash a bond before its issue date, and you will lose the last three months of interest if you cash it before five years have passed.
  • Savings bonds issued before May 2003 require a medallion signature may provide, which most banks can provide for a fee of $10 to $50.
  • If a bond is lost, stolen, or destroyed, you can request a replacement from the Treasury Department, but the process requires proof of ownership and takes several weeks.

Federal Reserve Banks and the Treasury if your bank will not help

If your bank declines to cash the bond, you can send it directly to a Federal Reserve Bank. Each Federal Reserve district has a main office that processes savings bond redemptions by mail. You will need to fill out Form PD 1522 (the Paying Agent's Receipt for Savings Bonds), include a copy of your ID, and mail the bond and form together to the Federal Reserve Bank that serves your region.

The Treasury Department's Bureau of the Fiscal Service also accepts bonds by mail at their office in Parkersburg, West Virginia. You use the same form and process. The mail route takes one to three weeks from the time they receive your package, depending on how busy they are. You will receive a check by mail.

This method is slower but costs nothing. It works for any bond, regardless of age or whether you have a bank account.

Bonds issued before May 2003 need a medallion signature may provide

Older bonds — those issued before May 2003 — require what is called a medallion signature may provide before any institution will cash them. This is not a notary signature. It is a special certification that a bank, credit union, or brokerage firm provides to verify that you are who you say you are and that you are authorizing the transaction.

Your bank can usually provide this if you ask. The cost ranges from $10 to $50 depending on the institution. You will need to bring the bond, your ID, and sometimes proof of your account. The may provide takes a few minutes to a few hours. Once you have it, you can cash the bond at any bank or send it to the Federal Reserve.

If your bank does not offer medallion guarantees, ask them which institutions in your area do. Many larger banks and all major brokerages provide them.

What happens to your interest if you cash early

Savings bonds earn interest over time, but the Treasury penalizes you if you cash before five years have passed. Specifically, you lose the last three months of interest. If you bought a bond in January 2023 and cash it in January 2024, you get paid through October 2023 — the three months from November through January are forfeited.

After five years, there is no penalty. You get all the interest earned up to the month you cash it. This is one reason many people hold bonds longer than they plan — the five-year mark removes the penalty and makes early cashing less costly if circumstances change.

Replacing a lost, stolen, or destroyed bond

If your bond is lost, stolen, or destroyed, you can request a replacement from the Treasury Department. You will need to fill out Form 8888 (Statement Regarding Destruction of U.S. Savings Bonds) or Form 1048 (Application for Relief — Theft, Loss, or Destruction of U.S. Savings Bonds), depending on the situation. You will also need to provide proof that you owned the bond — this might be a receipt, a bank statement showing the purchase, or a letter from the person who gave it to you.

Mail the form and proof to the Bureau of the Fiscal Service in Parkersburg, West Virginia. The process takes four to six weeks. Once approved, the Treasury will issue a replacement bond with the same issue date and value as the original. If the bond had already matured (stopped earning interest), they will send you a check instead.

Cashing bonds held in someone else's name

If you are trying to cash a bond that is registered in someone else's name, you will need that person's permission and signature. If the bond is in the name of a deceased person, you will need to provide a death certificate and proof that you are the executor or beneficiary of the estate. The bank or Federal Reserve will tell you exactly what documents they need.

Bonds registered to a minor can be cashed by a parent or legal guardian, but the institution will require proof of guardianship. If the bond is in both your name and someone else's name, either of you can cash it without the other's permission — the bond is set up that way.

Series I bonds and other special types

Series I bonds (inflation bonds) and Series EE bonds follow the same cashing rules as other savings bonds. You can cash them at your bank, through the Federal Reserve, or by mail to the Treasury. The five-year penalty rule applies to both. The main difference is that Series I bonds stop earning interest after 30 years, while Series EE bonds earn interest for 30 years and then stop.

Savings Notes and other older bond types may have different rules. If you are unsure what type of bond you have, check the front of the bond itself — it will say "Series" followed by a letter. If you cannot find the information, the Federal Reserve or Treasury can identify it for you when you contact them.

Frequently Asked Questions

Can I cash a savings bond before its issue date?

No. A savings bond cannot be cashed until the issue date printed on it has passed. If you try to cash it early, the bank or Federal Reserve will reject it. You must wait until that date arrives.

What if I lost the physical bond but have the serial number?

The serial number alone is not enough to cash or replace the bond. You will need the physical bond itself or proof of ownership (like a receipt or bank statement from the purchase). If you have neither, contact the Bureau of the Fiscal Service to explore your options for replacement.

Do I have to pay taxes when I cash a savings bond?

Yes. The interest you earned on the bond is subject to federal income tax. You do not pay tax when you cash it, but you must report the interest on your tax return for the year you cash it. State and local taxes may also apply depending on where you live.

Can I cash a bond at any bank, or only my own?

Most banks will only cash bonds for their own customers. Some larger banks may cash bonds for non-customers but often charge a fee. If your bank will not help, the Federal Reserve or Treasury will cash it by mail at no charge.

How long does it take to get my money if I mail the bond to the Federal Reserve?

The Federal Reserve typically processes bonds within one to three weeks of receiving them. Add time for mail delivery both ways. In total, expect three to four weeks from the time you drop it in the mail to when the check arrives.