The three places that will cash your bonds

You can cash savings bonds at your bank, through the U.S. Treasury Department directly, or at a credit union. Most people use their bank because it is the fastest — you walk in with the bond, show ID, and walk out with cash the same day. The Treasury route takes longer but works if your bank refuses or if you have lost the bond. Credit unions cash bonds for members, though not all of them do.

Which route you use depends on whether you still have the physical bond, whether your bank participates, and how quickly you need the money. If you own electronic bonds (issued after 2012), you cannot walk into a bank at all — you must go through the Treasury website or call them.

Key Takeaways

  • Banks cash paper savings bonds on the spot if you have the bond and a valid ID, but they are not required to do so and some refuse.
  • The U.S. Treasury will cash any bond you own, including ones you have lost, but the process takes one to two weeks by mail.
  • Electronic bonds can only be cashed through TreasuryDirect.gov or by calling the Treasury — no bank will handle them.
  • You will owe federal income tax on the interest your bond earned, but not state or local tax, and you can report it all in the year you cash it.

Cashing paper bonds at your bank

Call your bank first and ask whether they cash savings bonds. Many do, but some stopped during the pandemic and have not restarted. If they say yes, bring the bond itself, a valid photo ID, and your account information. You do not need to be a customer of that bank — most will cash bonds for anyone — but having an account there speeds things up.

The teller will verify the bond is genuine, check that you are the registered owner or an authorized representative, and give you cash or deposit it to an account. This happens the same day. Some banks charge a small fee (usually $5 to $10) to cash a bond that is not issued in your name, though most do not.

If your bank refuses, do not argue. Banks have the right to decline, and some have policies against it. Move to the Treasury instead.

Cashing through the U.S. Treasury directly

The Treasury will cash any paper bond you own, whether you have the original document or not. You have two options: mail the bond to them, or go in person to a Federal Reserve Bank branch.

To mail it, fill out Form PD 1522 (Statement Regarding Disposition of Savings Bonds), include a copy of your ID, and send both to the address listed on the form. The Treasury processes mail requests in one to two weeks and sends you a check. You can find the form and mailing address at treasurydirect.gov under "Redeem a Paper Bond."

If you have lost the bond, you can still redeem it. Include a statement explaining what happened and the Treasury will search their records. This takes longer — typically four to six weeks — but you will get paid if the bond is in your name.

To redeem in person, locate the Federal Reserve Bank branch nearest you on the Federal Reserve's website and bring the bond and your ID. Call ahead to confirm they handle walk-in redemptions, because not all branches do.

Cashing electronic bonds through TreasuryDirect

If you own electronic bonds (Series EE, I, or HH issued after 2012), you must redeem them through your TreasuryDirect account online. Log in at treasurydirect.gov, navigate to "Manage My Securities," select the bond you want to cash, and request redemption. The money goes to the bank account you have on file.

Electronic bonds redeem within one to two business days. You cannot cash them at a bank or in person — the Treasury system is the only way.

If you have forgotten your TreasuryDirect login, use the "Forgot Password" link on the site. If you cannot recover your account, call the Treasury at 844-284-2676 and they will help you regain access.

What happens to the interest you earned

When you cash a bond, you owe federal income tax on all the interest it earned since you bought it. You do not owe state or local tax on savings bond interest — that is a federal benefit. You can report the interest in the year you cash the bond, or you can report it each year as it accrues (though most people wait until redemption).

The Treasury does not withhold tax when you cash a bond. You will owe the full amount when you file your tax return. If you expect a large tax bill, set aside money now or plan to pay it when you file.

If you cashed the bond before age 59½ and used the money for education expenses, you may be able to exclude some or all of the interest from tax. This applies only to Series EE and I bonds bought after 1989, and only if the money went directly to tuition, fees, or room and board at an accredited school. Keep your receipts and ask a tax professional whether you may have access to.

What to do if your bank will not cash the bond

Some banks have stopped cashing savings bonds because the volume is low and the process is time-consuming. If yours is one of them, do not waste time arguing — go to the Treasury instead. Mailing the bond takes one to two weeks and costs only a stamp. Going in person to a Federal Reserve Bank branch is faster if one is near you.

You can also ask whether a different bank in your area will cash it. Credit unions sometimes will, even if banks will not. Call ahead before you visit.

Frequently Asked Questions

Can I cash someone else's savings bond?

Only if you are listed as a co-owner or authorized representative on the bond. If the owner is deceased, you will need to provide a death certificate and proof that you have the right to redeem it (usually through probate or a power of attorney). Contact the Treasury for the exact documents they need.

What if I lost the bond and do not remember the serial number?

The Treasury can find it using your Social Security number and the approximate date you bought it. Fill out Form PD 1522, explain that the bond is lost, and include a copy of your ID. The search takes longer than a normal redemption, but you will be paid if the bond is in your name.

Do I have to cash the whole bond, or can I cash part of it?

You must cash the entire bond. You cannot redeem a portion. If you own multiple bonds, you can cash some and keep others.

How long does it take to get the money after I request redemption?

At a bank, same day. Through the Treasury by mail, one to two weeks. Through TreasuryDirect online, one to two business days. In person at a Federal Reserve Bank, typically the same day or next business day.

Will the bank or Treasury tell me how much interest I earned?

Yes. When you redeem, you will receive a statement showing the purchase price, the redemption amount, and the interest earned. Keep this for your tax records.