You can redeem savings bonds at your bank, through the U.S. Treasury, or by mail

The place you redeem a savings bond depends on the type of bond you hold and how quickly you need the money. Paper bonds issued before 2012 can be cashed at most banks and credit unions, though some institutions have stopped accepting them. Digital bonds held in TreasuryDirect (the Treasury's online system) must be redeemed through that same account. The fastest route is usually your bank if you have an account there; the most reliable route is always the Treasury itself.

Before you go anywhere, you'll need the bond itself (if it's paper) or access to your TreasuryDirect login (if it's digital). You'll also need to verify you own it—bring a government-issued ID to a bank, or use your Social Security number and password online. If the bond is registered to someone else, that person must be present or have signed a power of attorney.

Key Takeaways

  • Banks and credit unions can redeem paper savings bonds on the spot, but not all institutions accept them anymore—call ahead to confirm.
  • TreasuryDirect bonds must be redeemed through your TreasuryDirect account online; you cannot take them to a bank.
  • The Treasury will redeem any bond by mail if you send it with a signed form and a copy of your ID, though this takes several weeks.
  • You must wait until a bond reaches its issue date before redeeming it; early redemption may result in a penalty of the last three months of interest.
  • If a bond is in someone else's name, that person must sign the redemption form or grant you power of attorney in writing.

Redeeming paper bonds at your bank or credit union

Walk into any branch of your bank or credit union with the physical bond and a government-issued ID. The teller will examine the bond, verify your identity, and process the redemption on the spot. You'll receive the cash or a deposit to your account the same day. This is the fastest method if your institution still accepts paper bonds.

However, many large banks have stopped accepting paper savings bonds because the volume is low and the process is manual. Call your bank's main customer service line before you go in and ask whether they redeem Series EE or Series I bonds. If they say no, ask if they can refer you to a branch that does, or move to the next option.

Credit unions are often more willing to redeem paper bonds than banks, especially if you are a member. If your credit union won't do it, the Treasury can redeem the bond by mail at no cost.

Redeeming TreasuryDirect bonds online

Log into your TreasuryDirect account at treasurydirect.gov using your Social Security number and password. Navigate to "Manage My Securities" and select the bond you want to redeem. The system will show you the current value and ask you to confirm the redemption. Once you submit, the Treasury will deposit the money into the bank account you have on file, usually within two business days.

This method works only for bonds you purchased directly through TreasuryDirect or bonds that were transferred into your TreasuryDirect account by the previous owner. If you inherited a bond or received one as a gift and it is not yet in TreasuryDirect, you will need to either take it to a bank or mail it to the Treasury.

If you have forgotten your TreasuryDirect password, use the "Forgot Password" link on the login page. The system will send a reset link to the email address on file. If you no longer have access to that email, call TreasuryDirect customer service at 844-284-2676 to verify your identity and regain access.

Mailing bonds to the Treasury

If your bank won't redeem the bond and you don't have a TreasuryDirect account, you can mail the bond directly to the Treasury. Download Form PD 1851 (Request to Redeem Series EE or I Savings Bonds) from treasurydirect.gov, sign it, and include a copy of your government-issued ID. Mail the form, a copy of your ID, and the physical bond to the address listed on the form.

The Treasury will process your request and mail you a check, usually within four to six weeks. Do not send the original bond by regular mail; use certified mail with return receipt requested so you have proof of delivery. Keep a copy of the form and the receipt until you receive your check.

This method is slower but may provide to work. The Treasury accepts bonds from any era and does not charge a fee. If the bond is in someone else's name, that person must sign the form, or you must include a notarized power of attorney document.

Understanding the penalty for early redemption

Most savings bonds can be redeemed any time after the issue date, but redeeming before five years have passed will cost you the last three months of interest. For example, if you redeem a Series EE bond after four years, you lose three months of earnings and receive only nine months' worth of interest for that year.

Series I bonds have a different rule: you can redeem them after one year, but redeeming before five years means losing the last three months of interest. If you redeem after five years, there is no penalty. Check your bond's issue date and the current date before you redeem to decide whether the penalty applies to you.

The redemption value shown on TreasuryDirect or by your bank already accounts for this penalty, so you do not need to calculate it yourself. The amount you receive is the final amount.

What to do if the bond is in someone else's name

If the bond is registered to a deceased person, a minor, or someone else entirely, the person whose name is on the bond must sign the redemption form or authorize you in writing. At a bank, bring the bond and ask the teller what documents they need. Most will require the registered owner's signature on the back of the bond or on a separate authorization form.

If the registered owner is deceased, you will need to provide a death certificate and proof that you are the executor or beneficiary of the estate. If the owner is a minor, a parent or legal guardian must sign. If you are redeeming on behalf of someone who cannot sign (due to illness or incapacity), you can obtain a power of attorney document notarized by a public notary and present that instead.

The Treasury's Form PD 1851 includes a section for someone other than the registered owner to sign. If you are mailing the bond, include the signed form and whatever proof of authority the Treasury requests.

Frequently Asked Questions

Can I redeem a savings bond before its maturity date?

Yes, you can redeem most savings bonds any time after the issue date. However, if you redeem before five years have passed, you will lose the last three months of interest. Series I bonds can be redeemed after one year, but the three-month penalty still applies if you redeem before five years.

What if I lost the physical bond?

Contact the Treasury at 844-284-2676 with the bond's series, denomination, and serial number if you have it. The Treasury can issue a replacement, though the process takes several weeks. If the bond is in TreasuryDirect, you do not need the physical copy—just log in and redeem it online.

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

Yes, the interest you earned on the bond is subject to federal income tax in the year you redeem it. You will receive a Form 1099-INT from the Treasury showing the interest amount. State and local taxes may also apply depending on where you live. Consult a tax professional if you are unsure how to report the income.

How long does it take to get my money after I redeem?

At a bank, you receive the cash or deposit the same day. Through TreasuryDirect, the deposit appears in your account within two business days. By mail, the Treasury sends a check within four to six weeks of receiving your request.

Can I redeem only part of a savings bond?

No, savings bonds are redeemed in full. You cannot cash in half of a bond and keep the other half. If you need only part of the value, you will have to redeem the entire bond and keep the remainder in another form of savings.