The cost of a supersedeas bond is usually 1% to 3% of the total bond amount per year, paid as a non-refundable premium to a surety company. On a $1 million judgment, that works out to roughly $10,000 to $30,000 annually for as long as the appeal takes. The total bond amount is generally larger than the judgment itself, because it also has to cover post-judgment interest and court costs. Your financial strength, credit, and whether you post collateral can push the rate to either end of that range, or outside it.
What the Total Bond Amount Covers
Premium is a percentage of the bond, so the bond’s size drives your bill as much as the rate does. The bond has to be big enough to guarantee that the appellee collects the full judgment if you lose, which means starting with the judgment and adding estimated interest for the expected length of the appeal, plus court costs and sometimes attorney fees.
Federal post-judgment interest uses the weekly average one-year constant maturity Treasury yield from the week before judgment was entered.1Office of the Law Revision Counsel. 28 USC 1961 – Interest In early 2026 that rate has run between roughly 3.48% and 3.70%.2U.S. District Court. Post Judgment Interest Rates On a $1 million judgment, that adds roughly $35,000 to $37,000 per expected year of appeal. Interest compounds annually and accrues daily, so a slow appeal means a bigger bond.
State courts often set the bond as a multiplier of the judgment. Requirements vary from the full judgment amount up to around 150% of it. Some states also cap supersedeas bond amounts on very large judgments, which can matter when a verdict runs into the tens of millions.
What Drives Your Premium Rate
The premium is the actual out-of-pocket fee you pay the surety for standing behind your obligation. It’s non-refundable. Rates typically fall between 1% and 3% per year of the bond amount, sometimes as low as half a percent with strong collateral, sometimes above 5% when the surety sees more risk.
Three things shape the rate more than anything else:
- Financial strength. The surety is effectively betting you can repay the judgment if the appeal fails. Audited financials showing assets well above the judgment push the rate toward the low end.
- Creditworthiness. Personal or corporate credit history signals whether you meet financial obligations reliably. Poor credit doesn’t automatically disqualify you, but it raises the rate and almost always triggers a collateral requirement.
- Collateral. Full collateral cuts the surety’s risk sharply and can drop the premium to about 1% or less. Without collateral, rates climb, and some sureties will decline the bond outright.
The perceived strength of the appeal itself can also matter. If the judgment looks likely to be affirmed, the surety knows it may end up paying the appellee and chasing you for reimbursement, and it prices that exposure in.
What It Adds Up To Over a Full Appeal
Because the premium is charged annually, your total cost depends on how long the appeal lasts. A federal civil appeal typically runs 12 to 24 months from the notice of appeal through decision, and some circuits trend longer. State appeals fall in a similar range or beyond, depending on the docket.
A concrete example. Take a $500,000 judgment, a bond set at 125% of the judgment ($625,000), and a 2% annual premium:
- Year one premium: $12,500.
- Year two premium if the appeal extends: $12,500.
- Total for a two-year appeal: $25,000.
That $25,000 is spent whether you win or lose. Premiums are non-refundable. Win on appeal and you may recover the premium as a taxable cost, but recovery isn’t guaranteed. Lose, and the surety pays the appellee, then comes after you under the indemnity agreement you signed when you got the bond. That agreement makes you personally liable to reimburse the surety for every dollar it paid out, plus its legal costs in collecting from you.
Collateral Is Its Own Cost
Collateral doesn’t show up in the premium, but it ties up capital, and for many appellants it’s the biggest financial burden of the process. Sureties typically accept cash and irrevocable letters of credit. When the surety has any doubt about your ability to satisfy the judgment, expect a collateral requirement equal to 100% of the bond amount.
Partial collateral arrangements exist on very large bonds but are the exception. The practical trade-off is between posting full collateral at a low premium rate and finding a surety willing to write with less collateral at a materially higher rate. Either way, count the opportunity cost of locked-up capital. On a $2 million bond, tying up $2 million in cash or a letter of credit for two years is a real expense even if you eventually get the money back. Letters of credit preserve more liquidity but come with bank fees, often an annual percentage of the letter’s face value.
If You Can’t Afford the Full Bond
A judgment large enough to cause serious hardship doesn’t necessarily end the road. Courts have discretion to accept alternative security or to set the bond below the full judgment. Federal Rule of Civil Procedure 62(b) allows a stay upon posting “a bond or other security,” language courts have read to cover arrangements beyond a traditional surety bond.3Legal Information Institute. Federal Rules of Civil Procedure Rule 62 – Stay of Proceedings to Enforce a Judgment
To get a reduction you generally have to show that posting the full amount is impracticable or impossible because of extraordinary circumstances. Courts weigh your overall ability to pay, the complexity of the case, whether a reduced bond still adequately protects the appellee, and whether forcing the full amount would harm your other creditors. A good-faith effort to obtain a full bond that failed can help; courts sometimes prefer a reduced bond to no bond.
Accepted alternatives include depositing cash into an interest-bearing escrow account, pledging securities, or providing an irrevocable letter of credit. A court-held cash deposit locks up your money and often doesn’t earn you interest. Local court rules on procedures and fees for these arrangements vary a lot by jurisdiction, so check them before choosing a path.
Getting the Premium Back if You Win
If the appellate court reverses in your favor, you may be able to recover the premium. Under the Federal Rules of Appellate Procedure, premiums paid for a bond or other security to preserve rights pending appeal are taxable costs in the district court for the party entitled to costs.4Legal Information Institute. Federal Rules of Appellate Procedure Rule 39 – Costs Practically, you’d ask the district court to order the losing side to reimburse the premium as part of the cost award. Collecting on that award still depends on the other party actually paying. State courts have their own cost rules, and not all states treat bond premiums as recoverable, so check the appellate rules where you’re litigating before you assume recovery.
Tax Treatment
Whether the premium is deductible depends on why you needed the bond. If the underlying judgment came out of business operations, the premium is generally an ordinary and necessary business expense, deductible like other litigation costs. If the judgment is personal, the premium is generally not deductible. The line blurs when an individual owner is personally liable for a business judgment, so run your specific situation past a tax professional rather than assuming.
Getting the Bond in Place
Cost isn’t the only variable; timing affects what you pay and what you’re exposed to before the stay kicks in. Not every surety writes judicial bonds, and supersedeas bonds are specialized enough that a surety or broker experienced with appellate work can make a real difference on rate and speed. Your appellate attorney may already have those relationships.
Underwriting review takes anywhere from a few days for straightforward cases to several weeks for complex financials. After approval you sign the indemnity agreement, pay the first year’s premium, post any required collateral, and file the bond with the court. The stay of enforcement takes effect once the court approves the bond.3Legal Information Institute. Federal Rules of Civil Procedure Rule 62 – Stay of Proceedings to Enforce a Judgment Start early. If the appellee begins enforcing while you’re still arranging the bond, unwinding that enforcement can be difficult and expensive even after the bond is finally in place.