You can redeem savings bonds at most banks, credit unions, and the U.S. Treasury

The place you redeem a savings bond depends on what type of bond you hold and whether you own it electronically or on paper. Paper bonds can be cashed at banks, credit unions, and the Treasury. Electronic bonds (held through TreasuryDirect) can only be redeemed through your TreasuryDirect account online. The fastest route for most people is their own bank or credit union, since you likely already have an account there and can complete the transaction in one visit.

Before you go anywhere, check that your bond has reached its final maturity date. Series EE and I bonds stop earning interest 30 years after issue, and you cannot redeem them after that point—though the Treasury will still hold them. If your bond is still earning, you can redeem it early, but you will lose the last three months of interest as a penalty.

Key Takeaways

  • Banks and credit unions are the fastest place to redeem paper savings bonds, and most will cash them for free if you have an account there.
  • You will need the physical bond certificate, a valid ID, and proof of ownership if someone other than the registered owner is redeeming it.
  • Electronic bonds held in TreasuryDirect can only be redeemed through your online account; you cannot take them to a bank.
  • Redeeming before final maturity costs you the last three months of accrued interest, so check the issue date before you cash it in.
  • The Treasury will redeem bonds by mail if no bank or credit union near you will, though the process takes longer.

Redeeming paper bonds at your bank or credit union

This is the simplest option for most people. Bring your bond certificate, a valid government-issued ID, and your account information to any branch of your bank or credit union. The teller will verify the bond's serial number, check that it has reached the redemption date, and deposit the cash directly into your account or give it to you in person.

Most banks and credit unions do not charge a fee to redeem savings bonds if you hold an account with them. Some credit unions may charge a small fee (typically $5 to $10) if you are not a member, though many will redeem bonds for non-members at no cost. Call ahead if you are not sure, or ask the teller when you arrive. If the bond is registered to someone else and you are redeeming it on their behalf, bring a signed letter from the owner authorizing you to cash it, plus your ID and theirs.

The teller will give you a receipt showing the redemption amount. The Treasury reports the interest you earned to the IRS, so keep this receipt for your tax records. You will receive a 1099-INT form in January if the interest exceeded $10 in the previous year.

Redeeming electronic bonds through TreasuryDirect

If you own bonds electronically through TreasuryDirect (the Treasury's online system), you cannot take them to a bank. Instead, log into your TreasuryDirect account at treasurydirect.gov, select the bond you want to redeem, and request the redemption online. The Treasury will deposit the cash into the bank account you have on file, usually within two business days.

You do not need to provide any documents or visit anywhere in person. The system will tell you immediately whether the bond is may be able to access for redemption and show you the exact amount you will receive. If you have forgotten your TreasuryDirect password, use the "Forgot Password" link on the login page to reset it.

Redeeming bonds through the U.S. Treasury by mail

If no bank or credit union near you will redeem your paper bond, or if you prefer not to visit in person, you can mail the bond directly to the Treasury. Send the bond certificate, a completed FS Form 1522 (Request for Redemption of United States Savings Bonds), a copy of your ID, and a letter stating the amount you want to redeem to the Bureau of the Fiscal Service in Parkersburg, West Virginia.

You can download Form 1522 from treasurydirect.gov or request it by phone at 844-284-2676. Include a return address and sign the form in front of a notary public or bank officer—the Treasury will not process unsigned or unwitnessed forms. Mail everything to: Bureau of the Fiscal Service, Parkersburg, WV 26106-1328.

Processing takes four to six weeks by mail. The Treasury will send you a check to the address you provided. This method is slower than visiting a bank, but it works if you live far from any financial institution or prefer to handle everything by post.

What to bring when you redeem a bond in person

Bring the physical bond certificate itself—the Treasury and banks cannot redeem a bond based on a photocopy or a picture. Bring a valid government-issued ID such as a driver's license, passport, or state ID card. If the bond is registered to you, that is all you need.

If the bond is registered to someone else and you are redeeming it with their permission, bring a signed letter from the owner stating that you are authorized to cash it on their behalf. Some banks will also ask to see the owner's ID, so bring a copy if you have one. If the bond is registered to a minor and you are the parent or guardian, bring the child's birth certificate or Social Security card along with your own ID.

Understanding the interest penalty for early redemption

If you redeem a Series EE or I bond before it reaches final maturity, the Treasury withholds the last three months of interest you earned. This is not a fee—it is a reduction in the amount you receive. For example, if a bond earned $100 in interest over five years but you redeem it in year four, you lose three months of that interest and receive less.

Series I bonds have an additional rule: if you redeem them within five years of purchase, you lose the last three months of interest. After five years, you can redeem them without this penalty. Series EE bonds can be redeemed anytime after one year of ownership, but the three-month penalty applies until final maturity.

Check your bond's issue date before you redeem it. If you are close to a date when the penalty will drop (such as five years after purchase for I bonds), waiting a few weeks or months might be worth it to keep the full interest amount.

What happens if a bond is lost or destroyed

If your paper bond is lost, stolen, or damaged beyond recognition, you cannot redeem it at a bank. Instead, contact the Treasury directly at 844-284-2676 or visit treasurydirect.gov to report it. The Treasury can issue a replacement bond if you provide the serial number, issue date, and proof of ownership (such as a bank statement showing you purchased it, or a letter from the original owner).

The replacement process takes several weeks. If you cannot locate the serial number, the Treasury may still be able to search their records if you provide your Social Security number and the approximate purchase date. Electronic bonds in TreasuryDirect are automatically protected—if your account is compromised, the Treasury can freeze it and issue replacements.

Frequently Asked Questions

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

Most banks will redeem savings bonds for customers who hold accounts with them. Some banks redeem bonds for non-customers, but may charge a fee or require you to open an account. Credit unions typically redeem bonds for members only. Call ahead to confirm, or ask the teller when you arrive.

What if my savings bond is registered to a deceased person?

If the bond is registered to a deceased owner and you are the executor or beneficiary, bring the death certificate along with your ID and a letter from the estate attorney or probate court authorizing you to redeem it. Some banks will require additional documentation. Contact the Treasury at 844-284-2676 if your bank refuses to process it.

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

At a bank or credit union, the deposit goes into your account immediately or within one business day. Through TreasuryDirect, the Treasury deposits the cash within two business days. By mail, expect four to six weeks from the date the Treasury receives your form.

Do I have to redeem the entire bond, or can I cash in part of it?

You must redeem the entire bond at once. You cannot split a bond or redeem a portion of it. If you need only part of the value, you will receive the full amount and can deposit or spend what you need.

Will I owe taxes on the interest from my savings bond?

Yes. The interest you earned is taxable income in the year you redeem the bond. The Treasury will send you a 1099-INT form if the interest was $10 or more. Report this on your federal tax return. Some states also tax savings bond interest, so check your state's rules.