To cash in savings bonds, you have three options: take paper bonds to a bank or credit union where you have an account, redeem electronic bonds inside your TreasuryDirect account, or mail paper bonds to the Treasury in Minneapolis. Every savings bond has a one-year minimum holding period, and cashing one before five years costs you the last three months of interest.1U.S. Treasury Fiscal Data. Treasury Savings Bonds Explained Which route you use depends on whether your bonds are paper or electronic, and sometimes on who is named on them.
Cashing Paper Bonds at a Bank or Credit Union
A local bank or credit union is the fastest place to cash a paper bond. Federal regulations require financial institutions that serve as paying agents to redeem eligible bonds for established account holders who present proper identification.2eCFR. 31 CFR Part 321 – Payments by Banks and Other Financial Institutions Bring a government-issued photo ID such as a driver’s license, state ID, or passport. The name on the bond must match your identification.
If you do not have an account at the bank, or you opened one recently, the bank can decide whether to process your request. The U.S. Secret Service recommends that banks not cash bonds for anyone who has held an account for fewer than 12 months.3TreasuryDirect. Guide to Cashing Savings Bonds In practice, you will usually need to visit a bank where you already have a relationship. Once the teller verifies your ID and processes the bond, you receive the funds immediately, either as cash or as a deposit to your account.
Not every branch will cash bonds, and some cap the dollar amount they will handle in a single visit. Call ahead if you are redeeming a large stack.
Redeeming Electronic Bonds Through TreasuryDirect
If you bought savings bonds online after 2012, or converted older paper bonds, your holdings are electronic and live in your TreasuryDirect account.4U.S. Department of the Treasury. TreasuryDirect To cash one, log in, go to ManageDirect, and select the option to redeem securities.5TreasuryDirect. Cashing EE or I Savings Bonds The system shows each bond’s current value, including accrued interest, before you confirm.
You can cash all or part of a bond. For a partial redemption, the minimum is $25, and you must leave at least $25 in the bond.5TreasuryDirect. Cashing EE or I Savings Bonds The Treasury sends the money by ACH to the bank account linked to your TreasuryDirect profile, and funds typically arrive within about two business days.
Electronic EE bonds redeem themselves at final maturity. When the bond hits its 30-year mark, the Treasury pays the full value into your linked account automatically.6TreasuryDirect. EE Bonds Paper bonds do not.
Mailing Paper Bonds to the Treasury
When a bank will not cash your bond, whether because you lack an account there or the bond has a complication like a deceased owner, you can mail it directly to the Treasury. Download and fill out FS Form 1522, which asks for your mailing address and the routing and account numbers for the bank account that will receive your direct deposit.7TreasuryDirect. FS Form 1522 – Special Form of Request for Payment The Treasury pays bond redemptions electronically, so bank account details are required.
If the total redemption value is more than $1,000, you must have your signature on the form certified by a notary or an authorized certifying officer at a bank or credit union.5TreasuryDirect. Cashing EE or I Savings Bonds Do not sign the form until you are in front of that official. For bonds totaling $1,000 or less, you can skip certification and enclose a copy of your photo ID instead.7TreasuryDirect. FS Form 1522 – Special Form of Request for Payment
Send the signed form and your unsigned bonds to:
Treasury Retail Securities Services
P.O. Box 9150
Minneapolis, MN 55480-9150
Do not sign the back of the bonds. Only sign the form. Use certified mail with a return receipt so you have proof of delivery. Processing takes at least six weeks before funds reach your bank account.8TreasuryDirect. Contact Us
Timing: When It Pays to Wait
Before you cash anything, check the issue date. Series EE and Series I bonds earn interest for 30 years from issue.9TreasuryDirect. Comparing EE and I Bonds After 30 years, they stop earning. A matured paper bond sitting in a drawer is losing purchasing power every day.
Series EE bonds carry one feature that changes the math. The Treasury guarantees an EE bond will double in value at 20 years, adding a one-time adjustment if the stated interest rate did not get it there.6TreasuryDirect. EE Bonds Cashing an EE bond before its 20-year mark forfeits that guaranteed doubling. Series I bonds have no equivalent promise; their value comes from a fixed rate plus an inflation adjustment.
And the shorter penalties: bonds cashed in the first year cannot be redeemed at all, and bonds cashed before five years lose the last three months of interest.
Situations That Change Where You Can Cash
Your Name Has Changed
You do not need to reissue a bond before cashing it if your name has changed through marriage, divorce, or a similar event. Sign the bond with both the printed name and your current legal name, and note the reason. For example: “Mary Smith, Mary Jones (name changed due to marriage).”10TreasuryDirect. Changing Information About EE or I Savings Bonds That works at the bank or by mail.
The Owner Has Died
If the bond names a surviving co-owner, that person is treated as the sole owner and can cash the bond as if it were in their name alone.11eCFR. 31 CFR Part 315 Subpart L – Deceased Owner, Coowner or Beneficiary The same applies if the bond is registered payable-on-death to a named beneficiary. Bring a certified copy of the death certificate along with your ID.2eCFR. 31 CFR Part 321 – Payments by Banks and Other Financial Institutions
When no living person is named on the bond and the estate will not go through probate, the Treasury treats it as a non-administered estate, provided the deceased person’s total Treasury securities are $100,000 or less as of the date of death.12U.S. Department of the Treasury. Non-Administered Estates A close family member who is at least 18, such as a surviving spouse, blood relative, or legally adopted child, can act as voluntary representative. File FS Form 5336 with certified signature, send certified copies of the death certificates and the unsigned bonds to the Minneapolis address, and keep the originals of your supporting documents.
If the estate is going through probate, the court-appointed personal representative handles the bonds using the court-issued letters of appointment and certified death certificates.
You’re Cashing a Bond for a Young Child
A parent can cash a paper bond on behalf of a child under 18 who is too young to understand the transaction, as long as the child lives with the parent or the parent has legal custody.13TreasuryDirect. Cashing Paper Bonds for a Young Child Write a statement on the back of the bond that covers your relationship to the child, the custody or residency situation, the child’s age and lack of sufficient understanding, and the child’s Social Security number. Sign as parent on behalf of the child. Bring your photo ID. If the bank cannot process the request, use FS Form 1522 with the same information and mail everything to Minneapolis.
The Bond Is Lost, Stolen, or Destroyed
Missing bonds still have value you can claim. File FS Form 1048 for lost, stolen, or destroyed bonds.14TreasuryDirect. FS Form 1048 – Claim for Lost, Stolen, or Destroyed Savings Bonds Everyone named on the bonds signs in front of a notary or certifying officer. Include any remaining pieces if the bonds were partially destroyed. If you cannot remember the serial numbers, the Treasury’s free Treasury Hunt tool lets you search by Social Security number for unredeemed bonds tied to that SSN.15TreasuryDirect. Treasury Hunt Search For missing bonds worth more than $5,000 where a law enforcement investigation took place, include a copy of the investigation report. When the Treasury approves the claim, you receive the value by direct deposit or as replacement electronic bonds in a TreasuryDirect account. The Treasury no longer issues replacement paper bonds for Series EE or I.
What to Expect on Taxes
Savings bond interest is subject to federal income tax but exempt from state and local income tax.16TreasuryDirect. Tax Information for EE and I Bonds Most people defer reporting until redemption, which means every year of accrued interest lands on your tax return the year you cash in. The Treasury or your bank will send you a Form 1099-INT for the interest paid.17Internal Revenue Service. Savings Bonds – Interest, Dividends, Other Types of Income If you used, or plan to use, the bond proceeds for qualified higher education expenses, the interest may be excludable from federal tax under separate rules with age, income, and filing-status conditions.