Where to Cash In a U.S. Savings Bond

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

Most people cash savings bonds at their own bank or credit union. Walk in with the bond itself, your ID, and a signature card (which the teller will provide). The teller verifies the bond is legitimate, checks that you are the registered owner or an authorized representative, and processes the redemption on the spot. You receive cash or a deposit to your account the same day.

Not every bank will cash bonds issued by other banks, but nearly all will cash bonds if you hold an account there. Some credit unions have the same policy. Call ahead if you are unsure — most institutions list this on their website or you can ask directly.

The process takes minutes. You do not need an appointment, though going during off-peak hours (mid-morning on a weekday) means less waiting.

Key Takeaways

• Your own bank or credit union will cash your bond the same day if you bring the physical bond, your ID, and sign a form.
• The U.S. Treasury's TreasuryDirect website lets you redeem electronic bonds instantly without leaving home, though paper bonds cannot be redeemed online.
• If you have lost the physical bond, the Treasury can issue a replacement, but the process takes several weeks and requires proof of ownership.
• Banks may charge a small fee to cash bonds issued by other institutions, so confirm the cost before you hand over the bond.
• Series EE and I bonds have early-redemption penalties if cashed before five years, so check your bond's issue date before you cash it.

Redeeming electronic bonds through TreasuryDirect

If you own bonds in a TreasuryDirect account (the Treasury's online system), you can redeem them without visiting a bank. Log into your TreasuryDirect account at treasurydirect.gov, select the bond you want to cash, and request redemption. The money moves to your linked bank account within one to two business days.

This method works only for bonds you purchased directly from the Treasury through TreasuryDirect. Bonds you received as gifts or inherited bonds that were never in a TreasuryDirect account must be cashed at a bank or through the Treasury's paper process.

TreasuryDirect redemptions are free and do not require you to leave home. You can redeem as many bonds as you want in a single transaction.

What to bring when you cash a bond at your bank

Bring the physical bond certificate itself — the bank cannot process a redemption without it. Bring a government-issued photo ID (driver's license, passport, or state ID card). The teller will also ask you to sign a form on the back of the bond or on a separate redemption form, depending on the bank's procedure.

If the bond is registered to someone else and you are cashing it as their authorized representative (for example, as a parent cashing a child's bond), bring documentation showing your authority — typically a birth certificate or guardianship papers. Some banks ask for a power of attorney if you are acting on behalf of an adult.

If the bond is in both your name and another person's name, both owners should be present, or the absent owner should sign a power of attorney authorizing you to redeem it. Rules vary by bank, so call ahead if the bond has multiple owners.

Cashing a bond through the U.S. Treasury if your bank refuses

If your bank will not cash the bond, you can redeem it directly through the Treasury. Mail the bond to the Federal Reserve Bank serving your region, along with a completed FS Form 1522 (the Treasury's redemption form) and a copy of your ID. The Treasury processes paper redemptions by mail and sends you a check within four to six weeks.

You can find the correct Federal Reserve Bank address and download Form 1522 at treasurydirect.gov. Include a cover letter with your name, address, and phone number so the Treasury can contact you if there are questions.

This route is slower than a bank redemption, but it works if your bank does not offer the service or if you prefer not to visit in person.

Replacing a lost or damaged bond before you cash it

If you have lost the physical bond or it is too damaged to cash, the Treasury can issue a replacement. You will need to complete Form FS 2680 (Statement Regarding Lost, Stolen, or Destroyed Savings Bond) and provide proof that you own the bond — typically a copy of the original purchase receipt or a bank statement showing the bond in your account.

Mail the completed form and proof to the Treasury at the address listed on treasurydirect.gov. Processing takes four to eight weeks. Once you receive the replacement bond, you can cash it at your bank or through the Treasury using the normal process.

Do not wait to report a lost bond. The longer you delay, the harder it becomes to prove ownership. If someone else finds the bond and tries to cash it, the Treasury can freeze the redemption if you have already reported it missing.

Early-redemption penalties and timing

Series EE and Series I bonds have a five-year holding period. If you cash either type before five years have passed, you lose the last three months of interest. For example, if you cash a bond after four years and nine months, you receive interest only through four years and six months.

Series HH bonds and older bond types have different rules, so check the bond's terms before you redeem. The bank teller or the Treasury can tell you the exact redemption value and any penalties based on your bond's issue date and current date.

There is no penalty for cashing a bond after the five-year mark, and there is no time limit — bonds do not expire. You can hold them as long as you want.

Taxes and reporting when you cash a bond

When you cash a savings bond, the interest you earned is subject to federal income tax. You report the interest on your tax return for the year you redeem the bond, unless you chose to report interest annually while you held the bond (an option available for Series EE bonds purchased after 1989).

The bank does not issue a 1099 form for bond redemptions — you are responsible for calculating and reporting the interest yourself. The redemption value minus the amount you originally paid equals the taxable interest.

Savings bonds are not subject to state or local income tax in most states. Check your state's tax rules if you live in a state with income tax.

Frequently Asked Questions

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

Most banks will cash bonds only if you have an account there. Some larger banks and credit unions will cash bonds from other institutions, but they may charge a fee. Call your bank first to confirm they will cash it and ask about any charges.

What if the bond is in my child's name and I want to cash it?

Bring the child's birth certificate and your ID. If the bond is in the child's name only, you will need to show you are the parent or legal guardian. If the bond is in both your names, you can usually cash it with just your ID. Ask the bank what documents they need before you go.

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

At a bank, you get cash or a deposit the same day. Through TreasuryDirect, the money reaches your linked account in one to two business days. By mail through the Treasury, expect four to six weeks.

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

Yes, the interest is taxable federal income in the year you cash the bond. You report it on your tax return. Savings bonds are not subject to state or local tax in most states, but check your state's rules.

What happens if I cash a bond before it reaches maturity?

Series EE and I bonds lose the last three months of interest if cashed before five years. Other bond types have different rules. There is no penalty after five years, and bonds never expire, so you can hold them as long as you want.