The three places to cash savings bonds

You can cash a savings bond at your bank, through the U.S. Department of the Treasury's TreasuryDirect website, or by mail to the Federal Reserve. Your bank is usually the fastest and most convenient option if you have an account there. TreasuryDirect works if you have an online account set up and the bond is registered in your name. The mail route takes the longest but works for any bondholder.

The method you choose depends on whether you have a physical bond or a digital one, whether you have a bank account, and how quickly you need the money. Physical Series EE and I bonds purchased before May 2003 can only be cashed at a bank or by mail. Bonds purchased after that date exist only digitally in TreasuryDirect, so you must use that system or mail the request to the Federal Reserve.

Key Takeaways

  • Banks cash savings bonds for account holders during business hours, usually within one business day, but may charge a small fee or require the bond to be registered in your name.
  • TreasuryDirect lets you cash digital bonds online if you have an account and the bond is in your name, with funds deposited to your linked bank account in one to three business days.
  • The Federal Reserve accepts bond redemption by mail from anyone, but the process takes two to four weeks and requires you to mail the physical bond or a certified copy.
  • You cannot cash a bond before its issue date, and cashing before the final maturity date may mean you lose accrued interest or pay an early redemption penalty.
  • Bonds registered to a minor or in a trust require the legal representative or custodian to initiate the cash-in, not the beneficiary.

Cashing at your bank

Call your bank first to confirm they cash savings bonds. Most banks do, but some smaller institutions or credit unions may not. Ask whether they charge a fee — some charge $5 to $15 per bond, while others do not. You will need to bring the physical bond itself, your government-issued ID, and proof that you are the registered owner (your account at that bank often serves as proof).

The teller will verify the bond's serial number, check that it has reached its issue date, and confirm you are the person named on it. If everything matches, they deposit the cash into your account or give it to you in person. This usually happens the same day or the next business day. If the bond is registered to someone else or to a minor, that person must be present or you must bring a notarized power of attorney.

Cashing through TreasuryDirect online

If you own a digital bond purchased after May 2003, log into your TreasuryDirect account at treasurydirect.gov. Click on "Manage My Securities," find the bond you want to redeem, and select "Redeem." You will see the current value and any penalties that apply. Confirm the redemption, and the money goes to the bank account linked to your TreasuryDirect profile.

Funds typically arrive in one to three business days. This method works only if the bond is registered in your own name and you have access to your TreasuryDirect login. If you have lost your password, use the "Forgot Password" link on the site. If you do not have a TreasuryDirect account, you cannot use this method — you will need to go to your bank or mail the request to the Federal Reserve instead.

Cashing by mail to the Federal Reserve

Mail your bond to the Federal Reserve Bank in your region along with a signed letter stating you want to redeem it. Include your name, address, phone number, and the bond's serial number. You must sign the letter in front of a notary public or a bank officer, or the Federal Reserve will return it unsigned.

Find your regional Federal Reserve Bank at federalreserve.gov/aboutthefed/structure-federal-reserve-system.htm. Mail the bond certified or insured, since you are sending a valuable document. The Federal Reserve will verify the bond, calculate the redemption value, and mail you a check. This process takes two to four weeks. If you are worried about losing the physical bond in the mail, you can send a certified copy instead, but you must have it certified by a bank or notary.

Penalties and interest loss for early redemption

Series EE bonds lose the last three months of interest if you cash them before five years have passed. Series I bonds have the same penalty. If you cash a bond at exactly five years and one month, you get all the interest earned up to that point. If you cash it at four years and eleven months, you lose three months of accrued interest.

Bonds reach final maturity at different ages depending on the series and purchase date. A Series EE bond purchased before May 2003 stops earning interest after 30 years. A Series I bond stops earning after 30 years as well. Once a bond reaches final maturity, you should cash it because it no longer earns interest. You can still redeem it at full value, but waiting longer means leaving money on the table.

Bonds registered to minors or in trusts

If a bond is registered to a minor, the parent or legal guardian must cash it. The minor cannot sign the redemption request alone. Bring the minor's birth certificate or Social Security card, your ID, and the bond to your bank, or include these documents with a mail request to the Federal Reserve.

If a bond is in a trust, the trustee must initiate the redemption. Bring a certified copy of the trust document to your bank along with your ID and the bond. If you are cashing by mail, include a certified copy of the trust with your letter to the Federal Reserve. The Federal Reserve may ask for additional documentation to confirm the trustee's authority.

What to do if you cannot find your bond

If you own a digital bond but cannot remember your TreasuryDirect login, go to treasurydirect.gov and use the password reset tool. If you still cannot access your account, call the TreasuryDirect customer service line at 844-284-2676. They can verify your identity and help you regain access.

If you own a physical bond and have lost it, you cannot cash it at a bank. Contact the Federal Reserve's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov/indiv/research/indiv_research.htm to file a claim for a lost or stolen bond. You will need to provide the bond's serial number, issue date, and series. The process can take several months, and you may not recover the full value if the bond has been cashed by someone else.

Frequently Asked Questions

Can I cash a savings bond before its issue date?

No. A bond cannot be redeemed before the date it was issued. If you purchased a bond on June 15, you cannot cash it until June 15. Attempting to cash it before that date will be rejected by your bank or the Federal Reserve.

What happens if I cash a bond right after it reaches five years?

You will receive the full value with all accrued interest. The three-month interest penalty applies only if you cash before five years have passed. At exactly five years and one day, you owe no penalty and get every penny of interest earned.

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

You will owe federal income tax on the interest earned, but not on the original amount you paid. You do not pay it at the time of cashing — you report it on your tax return for the year you redeem the bond. State and local taxes vary by location.

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

Only if you give them a notarized power of attorney. A simple letter or verbal permission is not enough. The person cashing the bond must be able to prove they have legal authority to act on your behalf.

What if my bank says they cannot cash my bond?

Try another bank in your area — most will cash bonds for non-customers for a small fee. If no local bank will do it, use TreasuryDirect if it is a digital bond, or mail the bond to the Federal Reserve with a notarized redemption letter.