The three places that will cash your bonds

You can cash a bond at your bank, at a credit union where you have an account, or directly through the U.S. Treasury if you own Treasury bonds. Most people use their bank because it is the fastest and requires no extra paperwork. Your bank will cash the bond, deposit the money into your account, and you walk away in minutes. Credit unions do the same thing if you are a member. The Treasury route takes longer—usually five to seven business days—but works if your bank refuses or if you want to avoid a middleman.

Which place you use depends on what kind of bond you own and how quickly you need the money. Series EE bonds, Series I bonds, and savings bonds sold before 2012 all go through banks or the Treasury. Treasury bonds (the kind sold directly by the government in auctions) also go through banks or the Treasury. Corporate bonds and municipal bonds are different—those require a brokerage account or a broker, which is a separate process.

Key Takeaways

  • Your bank or credit union will cash most bonds the same day if you bring the physical bond and a valid ID.
  • The U.S. Treasury will cash bonds by mail or online through TreasuryDirect, but the process takes five to seven business days.
  • You need the bond itself (not a copy), your Social Security number, and proof of identity to cash a bond anywhere.
  • Some banks charge a small fee to cash bonds that are not issued by them, so call ahead if the bond is from a different institution.

Cashing a bond at your bank

Walk into any branch of your bank with the physical bond, your driver's license or passport, and your Social Security number. The teller will verify the bond is genuine, check that it has matured (meaning the holding period is over), and deposit the money into your account. The whole thing usually takes 10 to 15 minutes. You do not need to have owned the bond for any particular length of time at that bank—the bank cashes it based on what the bond itself says, not your account history.

If the bond was issued by a different bank—say you inherited a bond from a relative who banked elsewhere—your bank may charge a fee to cash it. This fee is usually $5 to $15. Call your bank's customer service line before you go in and ask whether they charge to cash bonds from other institutions. If they do, you have two choices: pay the fee, or take the bond to the bank that originally issued it (if that bank still exists).

Bring the bond itself, not a photocopy. Banks will not cash a copy, and they will not cash a bond that has been damaged, torn, or written on. If your bond is in bad shape, the Treasury can replace it, but that takes several weeks.

Cashing a bond at your credit union

Credit unions cash bonds the same way banks do, with one requirement: you must be a member. Walk in with your bond, ID, and Social Security number, and the teller will process it. The timeline is the same as a bank—usually the same day. Credit unions often charge lower fees than banks for this service, and some charge nothing at all, so if you belong to a credit union, it is worth asking them first.

If you do not have a credit union account, you can open one before you cash the bond. Most credit unions have simple membership requirements—you might need to live in a certain area, work for a certain employer, or belong to a certain organization. Some credit unions are open to anyone. The membership process takes 15 to 30 minutes, and you can often cash the bond the same day after you join.

Cashing a bond through the U.S. Treasury

If you own a Treasury bond (a bond issued directly by the U.S. Department of the Treasury), you can cash it through TreasuryDirect, the government's online system. Log into your TreasuryDirect account, find the bond in your portfolio, and request to redeem it. The money will be deposited into your bank account in five to seven business days. You do not need to mail anything or visit an office.

If you own a physical Treasury bond—an actual paper certificate—you can mail it to the Treasury's Bureau of the Fiscal Service with a form called FS Form 1522. Include a letter stating that you want to redeem the bond, sign it, and mail it to the address on the form. The Treasury will send you a check or deposit the money into your bank account, depending on what you request. This method takes two to three weeks because of mail time.

You can also take a physical Treasury bond to your bank and ask them to cash it. Most banks will do this, though some may charge a small fee. This is faster than mailing it to the Treasury.

What you need to bring or provide

At a bank or credit union, bring three things: the bond itself, a government-issued photo ID (driver's license, passport, or state ID), and be ready to provide your Social Security number. The teller will ask for the Social Security number to verify your identity and report the transaction to the IRS if needed.

If you are cashing a bond that belongs to someone else—a deceased relative's estate, for example—you will need different documents. You will need the bond, your ID, and a document proving you have the legal right to cash it, such as a death certificate and a will, or a court order naming you as executor. Ask your bank what specific documents they need before you go in.

For TreasuryDirect, you need your username and password, and you will need to verify your identity online. For mailing a physical bond to the Treasury, you need the bond, a completed FS Form 1522, and a signature on the form.

What happens if your bond has matured

A bond has matured when the holding period is over. For Series EE bonds, that is 30 years. For Series I bonds, it is also 30 years. For Treasury bonds, the maturity date is printed on the bond itself—it might be 2, 5, 10, or 30 years from the date it was issued. You can cash a bond before it matures, but you may lose some interest or pay a penalty, depending on the type of bond.

When you bring a bond to a bank or credit union, the teller will check the maturity date. If the bond has not matured yet and you are trying to cash it early, the bank will tell you what penalty applies. For some bonds, there is no penalty. For others, you lose the last three months of interest. The teller will explain this before they process the transaction, so you can decide whether to go ahead.

Fees and what to expect

Most banks do not charge a fee to cash bonds that they issued themselves. If you are cashing a bond from a different bank, expect a fee of $5 to $15. Credit unions often charge less or nothing. The Treasury does not charge a fee to cash bonds through TreasuryDirect or by mail.

When you cash a bond, the bank or Treasury will report the transaction to the IRS. You will receive a Form 1099-INT in January of the following year if the bond earned more than $10 in interest. This is normal and does not mean you owe extra tax—it just means the IRS knows you cashed the bond. You will report the interest on your tax return.

Frequently Asked Questions

Can I cash a bond at any bank, or does it have to be my bank?

You can cash a bond at any bank, not just the one that issued it. However, banks that did not issue the bond may charge a fee of $5 to $15. Call ahead to ask. Credit unions also cash bonds for members, often with no fee.

What if I lost the physical bond?

Contact the Treasury or the bank that issued the bond and ask about a replacement. You will need to prove you own the bond—usually with a copy of the original purchase receipt or a statement showing you bought it. The replacement process takes several weeks. In the meantime, you cannot cash the bond.

Can I cash a bond online without going to a bank?

Yes, if it is a Treasury bond held in TreasuryDirect. Log in, select the bond, and request redemption. The money goes into your bank account in five to seven business days. For other bonds, you must visit a bank, credit union, or mail the bond to the Treasury.

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

You will owe federal income tax on the interest the bond earned, but not on the original amount you invested. The interest is reported to the IRS on a Form 1099-INT. State and local taxes may also apply depending on where you live and what type of bond it is.

What if the bond is in someone else's name?

You cannot cash it unless you have legal authority. If the bond owner has died, you will need a death certificate and proof that you are the executor or beneficiary. If the bond is in a child's name, a parent or guardian can usually cash it with the child's Social Security number and a birth certificate. Ask your bank what documents they need.