To cash in savings bonds, redeem electronic bonds through your TreasuryDirect account online, or take paper bonds to a bank that cashes them, or mail paper bonds with FS Form 1522 to the Treasury. Electronic redemptions deposit into your linked bank account within two business days; paper-bond mail-ins take three to six weeks. Both Series EE and Series I bonds must be held at least 12 months before redemption (six months for bonds issued before February 2003), and cashing within the first five years costs three months of interest.
When You Can Cash a Bond
For Series EE and Series I bonds issued on or after February 1, 2003, you must wait 12 months from the issue date before redeeming.1eCFR. 31 CFR Part 351 – Offering of United States Savings Bonds, Series EE – Section: 351.6 Bonds issued before that date had a shorter six-month holding period.2eCFR. 31 CFR Part 359 – Offering of United States Savings Bonds, Series I – Section: 359.6 Any attempt to redeem before that will be rejected.
Cash a bond less than five years after its issue date and the Treasury reduces your earnings by three months of interest.3eCFR. 31 CFR Part 351 – Offering of United States Savings Bonds, Series EE – Section: 351.35 On a bond that has earned nine months of interest, you’d receive only six months’ worth. After the five-year mark, there’s no penalty.
Both Series EE and Series I bonds stop earning interest 30 years after they’re issued.4TreasuryDirect. Savings Securities Maturity Chart If you’re holding bonds from the early 1990s or older, check the issue date before deciding to hold longer.
Cashing Electronic Bonds in TreasuryDirect
If your bonds live in a TreasuryDirect account, the process takes a few minutes. Log in, open the ManageDirect tab, and select the option to cash securities. You’ll see the bonds eligible for redemption. Choose the ones you want to cash, confirm the amount, and submit.5TreasuryDirect. TreasuryDirect Help – How Do I
Partial redemption is allowed. You must redeem at least $25 and leave at least $25 in the bond.5TreasuryDirect. TreasuryDirect Help – How Do I That’s useful if you want some cash now while keeping the rest earning interest.
Funds land in the bank account linked to your TreasuryDirect profile within two business days.5TreasuryDirect. TreasuryDirect Help – How Do I Confirm your routing and account numbers are current before you start. An outdated linked account will hold up payment.
Cashing Paper Bonds at a Bank
Many banks and credit unions will cash paper savings bonds on the spot if you bring the certificates and a valid government-issued photo ID. The bank verifies your identity, processes the bonds, and either hands you cash or deposits the money. Not every bank offers the service, and some limit how much they’ll cash at once, so call ahead.6TreasuryDirect. Cashing EE or I Savings Bonds Non-customers face the tightest restrictions; being a longtime account holder helps.
Cashing Paper Bonds by Mail
If no bank near you will handle the redemption, mail the bonds to the Treasury with FS Form 1522, the formal request for payment. You can download it from the TreasuryDirect website.7TreasuryDirect. Special Form of Request for Payment of United States Savings and Retirement Securities The form asks for your Social Security number, legal name, mailing address, and each bond’s serial number.
Signature certification depends on the total amount. If you’re cashing $1,000 or less, you can sign the form yourself without a witness or stamp.7TreasuryDirect. Special Form of Request for Payment of United States Savings and Retirement Securities Above $1,000, you must sign in the presence of a notary public or an authorized certifying officer at a bank, who then applies an official seal or stamp. Many banks provide this free for account holders.
Mail the completed form and unsigned bond certificates to Treasury Retail Securities Services, P.O. Box 9150, Minneapolis, MN 55480-9150. Use certified mail with return receipt requested. You’re sending irreplaceable paper. Expect three to six weeks for payment, which arrives as a direct deposit to the bank account listed on the form.
Converting Paper Bonds to Electronic Instead
If you’re not ready to cash but want to stop worrying about losing paper certificates, convert them to electronic bonds in TreasuryDirect at no cost. Log into your account, go to ManageDirect, and set up a Conversion Linked Account. The system walks you through preparing your paper bonds for submission.8TreasuryDirect. Converting EE or I Paper Bonds to Electronic Bonds Do not sign the back of the bonds before mailing them in. Once converted, you can redeem them online any time, with the two-day deposit timeline.
Special Situations
Your Name Has Changed
If your legal name differs from the name on the bond because of marriage, divorce, or a court order, you can still cash it. Federal regulations allow you to submit the bond with a request to reissue it in your current name.9eCFR. 31 CFR 315.50 – Change of Name The Treasury may ask for a marriage certificate or court decree. If you’re cashing at a bank, bring that documentation along with the bond and your current photo ID.
Cashing Under a Power of Attorney
An agent acting under a power of attorney can redeem bonds by mail. The power of attorney must be durable or have been signed within the past two years.10TreasuryDirect. Living Estates (Powers of Attorney, Guardians, and Conservators) The agent sends FS Form 1522, the unsigned bonds, and a legible copy of the power of attorney document, including any court seals or stamps.
After the Owner Has Died
If a surviving co-owner or named beneficiary is on the bond, the bond passes directly to that person and does not become part of the estate.11TreasuryDirect. Death of a Savings Bond Owner That person can cash it at a bank or through TreasuryDirect.
When no co-owner or beneficiary is named, the bond becomes part of the estate. If the estate won’t go through formal probate and the total redemption value of all Treasury securities is $100,000 or less, a family member can act as a “voluntary representative” and handle the bonds without court involvement using FS Form 5336, signed before a certifying official and mailed with a certified copy of the death certificate and the unsigned bonds.12TreasuryDirect. Non-Administered Estates
Lost, Stolen, or Destroyed Bonds
Losing a paper bond doesn’t mean losing the money. File FS Form 1048 with the Treasury to get an electronic replacement in your TreasuryDirect account or to have the Treasury cash the bond and send you the proceeds.13TreasuryDirect. Get Help for Lost, Stolen, or Destroyed EE or I Savings Bond You’ll need the serial number if possible. If you don’t have it and the bond was issued in 1974 or later, check your state’s unclaimed property program. As of late 2025, the Treasury’s own search tool (Treasury Hunt) is no longer available, and unclaimed bond inquiries now go through individual states.14TreasuryDirect. Treasury Hunt FS Form 1048 must be signed in front of a notary or certifying officer.
Taxes on the Interest
Federal Tax
When you redeem a savings bond, the interest it earned becomes taxable income for that year. Your original purchase price is not taxed; only the growth above what you paid is.15Office of the Law Revision Counsel. 26 USC 454 – Obligations Issued at Discount If you paid $500 for a bond now worth $730, you owe federal income tax on the $230 in accumulated interest. You’ll receive a 1099-INT from the paying bank or through your TreasuryDirect account by January 31 of the following year.16TreasuryDirect. Tax Information for EE and I Bonds
You can also elect to report the interest each year as it accrues rather than waiting until redemption. That rarely helps most people but can be useful for bonds held in a child’s name when the child has little or no other income.
State and Local Tax
Savings bond interest is exempt from state and local income taxes.16TreasuryDirect. Tax Information for EE and I Bonds You owe nothing to your state on the interest, regardless of where you live.
Education Exclusion
You may avoid federal tax on bond interest entirely if you use the proceeds for qualified higher education expenses. The exclusion covers tuition and fees at eligible institutions, plus contributions to a 529 plan or Coverdell Education Savings Account. Room and board don’t count.17Internal Revenue Service. Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989
Income limits apply and are adjusted annually. For 2026, the benefit begins phasing out at $101,800 of modified adjusted gross income for single filers ($152,650 for joint filers) and disappears entirely at $116,800 ($182,650 for joint filers). The bonds must have been issued after 1989, the owner must have been at least 24 at the time of purchase, and you claim the exclusion on IRS Form 8815.
Co-Owners
If two people bought a bond together, each co-owner reports the interest in proportion to what they contributed toward the purchase price.16TreasuryDirect. Tax Information for EE and I Bonds Married couples in community property states who file separately each report half. The 1099-INT usually goes to whichever owner actually cashes the bond, so if that person didn’t fund the entire purchase, they’ll need to account for the split at filing time.