To cash in a savings bond, redeem an electronic bond through your TreasuryDirect account or take a paper bond to a bank that will cash it, mailing it to the Treasury with FS Form 1522 if no bank will. Electronic redemptions usually land in your bank account within two business days; mailed paper bonds take three to six weeks. Interest is taxed federally but exempt from state and local income tax.
When You Can Cash a Bond
Every savings bond is locked for the first 12 months after purchase.1eCFR. 31 CFR 353.35 After that first year you can redeem it, but cashing before you’ve held it five full years costs you the last three months of interest. On a bond earning $200 a year in interest, that penalty comes to roughly $50. Once you cross the five-year mark, no penalty applies.
Both Series EE and Series I bonds stop earning interest 30 years after the issue date.2eCFR. 31 CFR Part 351 Subpart B – Maturities, Redemption Values, and Investment Yields of Series EE Savings Bonds3TreasuryDirect. I Bonds After that, the money sits idle. If you have bonds from the mid-1990s or earlier, check them; some have already reached final maturity.
Check the Bond’s Current Value First
Before you redeem, find out what the bond is actually worth. Electronic bonds show their current value, accumulated interest, and issue date inside your TreasuryDirect account. For paper bonds, use the free Savings Bond Calculator on TreasuryDirect.4TreasuryDirect. Savings Bond Calculator – Detailed Instructions Enter the series, denomination, and issue date, and it returns the redemption value along with total interest. You can change the date to see what the bond will be worth in a future month, which matters when a short wait until the next interest accrual date would meaningfully increase your payout.
How to Cash an Electronic Bond
Log into TreasuryDirect, open your current holdings, select the bond, choose full or partial redemption, confirm the linked U.S. bank account on your profile, and submit.5TreasuryDirect. Redeem Savings Bonds Funds usually arrive within two business days. There is no form to fill out and no paperwork to mail.
You don’t have to redeem the entire bond. Partial redemptions are allowed, but whatever you leave in the bond has to be at least $25.6eCFR. 31 CFR 363.54 If your request would drop the remaining balance below that, the system requires you to cash the whole thing.
How to Cash a Paper Bond
At a Bank or Credit Union
Many banks and credit unions will cash paper savings bonds for their own established customers. Federal Reserve guidance to financial institutions suggests the customer relationship be at least 12 months old, though each institution sets its own policy.7Federal Reserve Financial Services. Savings Bond Redemptions Frequently Asked Questions Bring the physical bonds and a government-issued photo ID. The bank pays you on the spot and handles the reporting.
By Mail to the Treasury
If no bank will cash the bonds, mail them to the Treasury with FS Form 1522, “Special Form of Request for Payment of United States Savings and Retirement Securities.”8TreasuryDirect. FS Form 1522 – Special Form of Request for Payment of United States Savings and Retirement Securities The form asks for your full legal name, Social Security number, mailing address, and each bond’s serial number.
How you certify the form depends on the dollar amount. If the total redemption value is $1,000 or less, sign the form and enclose a photocopy of a government-issued photo ID such as a driver’s license, passport, or state ID card.8TreasuryDirect. FS Form 1522 – Special Form of Request for Payment of United States Savings and Retirement Securities Above $1,000, you must sign in front of a notary public or an authorized certifying officer at a bank or credit union. This is the standard bank certification, not a Medallion Signature Guarantee; Medallion stamps are for security transfers, not savings bond redemptions.9TreasuryDirect. Signature Certification
Send the completed form and the bonds to:
Treasury Retail Securities Services
P.O. Box 9150
Minneapolis, MN 55480-915010TreasuryDirect. Who to Contact for Savings Bond Inquiries
Use certified or registered mail with tracking. These are irreplaceable documents until Treasury logs them in. Processing typically takes three to six weeks, and payment arrives by check or direct deposit to the bank account you listed on the form.
Cashing a Bond You Don’t Personally Own
Under a Power of Attorney
If you hold power of attorney for the bond owner, you can redeem their bonds when the POA document carries the owner’s notarized signature, explicitly grants authority to sell or redeem securities or personal property, and, where the owner has become incapacitated, meets your state’s durability requirements so the authority survives incapacity.11eCFR. Regulations Governing U.S. Savings Bonds, Series A, B, C, D, E, F, G, H, J, and K, and U.S. Savings Notes Submit a copy of the POA with the redemption paperwork.
For a Minor
A parent or legal guardian can redeem a bond registered in a minor’s name. Provide proof of the relationship and both Social Security numbers.
As a Voluntary Guardian
If an adult owner can no longer manage their affairs and no court-appointed representative has been named, a relative or caretaker can redeem the bonds as a voluntary guardian, but only if the owner’s total bond redemption value is $20,000 or less.11eCFR. Regulations Governing U.S. Savings Bonds, Series A, B, C, D, E, F, G, H, J, and K, and U.S. Savings Notes Above that, a court must appoint a legal representative.
After the Owner Has Died
What happens depends on how the bond is registered. If a co-owner is named, the survivor becomes the sole owner and can redeem the bond with a certified copy of the death certificate.12eCFR. Subpart L – Deceased Owner, Coowner or Beneficiary If a beneficiary is named, that person becomes the owner on the original owner’s death and redeems the bond the same way.
Bonds registered to a single owner with no co-owner or beneficiary become part of the estate. A court-appointed executor or administrator redeems them by presenting letters testamentary or letters of administration along with FS Form 1522 and the bonds.13TreasuryDirect. Death of a Savings Bond Owner
For smaller estates that won’t go through formal probate, Treasury offers a shortcut. If the deceased person’s total Treasury securities value is $100,000 or less and no court administration is planned, a close relative can act as voluntary representative using FS Form 5336.14TreasuryDirect. Disposition of Treasury Securities Belonging to a Decedents Estate Being Settled Without Administration – FS Form 5336 Eligibility runs in a set order: surviving spouse first, then children, grandchildren, parents, siblings, and so on.
If the Paper Bond Is Lost, Stolen, or Destroyed
Treasury can replace paper bonds that vanished, burned, or were stolen. File FS Form 1048, “Claim for Lost, Stolen, or Destroyed United States Savings Bonds.”15TreasuryDirect. FS Form 1048 – Claim for Lost, Stolen, or Destroyed United States Savings Bonds Provide whatever you have: serial numbers, issue dates, face amounts, and the Social Security number on the bond. Without serial numbers, give approximate purchase dates, denominations, and the purchaser’s identity. Describe when you last saw the bonds and where they were kept. The form must be signed before a notary or a certifying officer at a financial institution before mailing. If the bonds were stolen, attach a copy of the police report.
Treasury’s Treasury Hunt search tool was discontinued as of September 30, 2025. Inquiries about unredeemed or matured securities now go through individual states’ unclaimed property programs; you can start at unclaimed.org, run by the National Association of Unclaimed Property Administrators, using the state where the original purchaser lived at the time of purchase.16TreasuryDirect. Treasury Hunt – Searching for Treasury Securities
Taxes When You Cash a Bond
Interest is subject to federal income tax and exempt from state and local income tax.17TreasuryDirect. Tax Information for EE and I Bonds By default, you defer reporting the interest until the year you redeem the bond or it reaches final maturity, whichever comes first. Hold a bond 20 years and you owe the IRS nothing until you cash it.
You can instead elect to report interest annually as it accrues, but the method must apply to all your EE and I bonds.18Internal Revenue Service. Publication 550 (2025) – Investment Income and Expenses Switching from deferred to annual reporting doesn’t require IRS permission; you report all previously unreported interest in the year of the switch. Going from annual back to deferred does require IRS approval. Annual reporting occasionally helps if you’re in a low tax bracket now and expect a higher one when you redeem. For most people, deferring is simpler.
You’ll get a 1099-INT for the year of redemption. If a bank cashes the bond, the bank issues it. If you mail bonds to Treasury, Treasury issues it. For electronic bonds, the form appears in your TreasuryDirect account.19TreasuryDirect. 1099 – TreasuryDirect In every case, the form is available by January 31 of the following year. If you deferred for years, the 1099-INT reports the whole accumulated amount at once, which can push you into a higher bracket in the year you cash out. Worth planning around if the bond is large.
The Education Tax Exclusion
If you use the proceeds to pay qualified higher education expenses, you may exclude some or all of the interest from federal income tax under 26 U.S.C. ยง 135.20Office of the Law Revision Counsel. 26 USC 135 – Income from United States Savings Bonds Used to Pay Higher Education Tuition and Fees Every rule below must be met; missing one disqualifies the exclusion:
- Only Series EE and Series I bonds issued after 1989 qualify.
- The bond owner must have been at least 24 years old when the bond was issued. A bond a parent bought in a child’s name doesn’t qualify for either of them.
- The bonds must be registered in your name, or in your name and your spouse’s if married.
- Proceeds must go toward tuition and required fees at an eligible college, university, or vocational school. Room and board don’t count.
- You cannot file as married filing separately.
The exclusion phases out at higher incomes. For 2026, the phase-out range is $101,800 to $116,800 in modified adjusted gross income for single filers and $152,650 to $182,650 for joint filers. Above the upper limit, the exclusion is unavailable. If you redeem more in bond proceeds than you spend on qualified expenses, only a proportional share of the interest qualifies. Claim the exclusion on IRS Form 8815 with your return.