WW2 war bonds were Series E U.S. savings bonds sold to the public between 1941 and 1945 to help finance the war, and if you still hold one today it has long since stopped earning interest but can be cashed at any financial institution that handles savings bonds. Roughly $150 billion to $185 billion was raised through the program, and a portion of that value has never been redeemed.
What a Series E War Bond Was
The Series E bond went on sale May 1, 1941, first marketed as a “Defense Savings Bond” and renamed a “War Bond” after the United States entered the conflict. It was a non-marketable savings instrument, meaning the owner could not sell or transfer it to another person.1U.S. Treasury Fiscal Data. Treasury Savings Bonds Explained Each bond was registered in the buyer’s name.
Buyers paid 75 percent of face value up front and collected the full amount at maturity. The classic example: $18.75 in, $25.00 out. Denominations ran from $25 up through $50, $75, $100, $200, $500, $1,000, and larger amounts as high as $100,000, though the $25 bond was the one most families bought.2TreasuryDirect. Historical and Retired Bonds
For workers who couldn’t set aside even a full bond’s price, the Treasury sold war savings stamps in denominations of 10 cents, 25 cents, 50 cents, and one dollar. Buyers pasted them into a collector’s album and traded a completed album in for a Series E bond. That is why some inherited paperwork today turns up as partially filled stamp books rather than bond certificates.
Interest and When These Bonds Stopped Earning
Series E bonds issued during the war reached face value after 10 years, an effective yield of about 2.9 percent, paid entirely at redemption rather than through periodic checks. The Treasury then granted multiple 10-year extensions, so bonds issued between May 1941 and November 1965 kept earning for up to 40 years from issue.3eCFR. 31 CFR Part 316 – Offering of United States Savings Bonds, Series E
After the 40-year mark, they stopped accruing interest entirely. A bond bought in May 1941 stopped growing in May 1981. Every Series E bond issued during World War II has now reached final maturity, so the value is fixed. Cashing one in sooner rather than later doesn’t cost you interest, but leaving it in a drawer also doesn’t add any.
How to Redeem a WW2 Bond You Have
If you physically hold the paper bond, take it to any financial institution that handles savings bond redemptions, along with valid photo identification.2TreasuryDirect. Historical and Retired Bonds Bonds can also be redeemed by mail through the Treasury’s retail securities office. The registered owner shown on the face of the bond is the person entitled to cash it.
As of 2020, about $27 billion in matured savings bonds of all types remained unredeemed nationwide.4White House Archives. Executive Order Promoting Redemption of Savings Bonds So old bonds turning up in estates, safe deposit boxes, and family papers are common, and they are still payable.
If You Can’t Find the Paper Bond
Bonds that are lost, stolen, or destroyed can be claimed using Treasury FS Form 1048. The form requires a notarized signature and is mailed to the Treasury’s processing center.5TreasuryDirect. Get Help for Lost, Stolen, or Destroyed EE or I Savings Bond Having the serial number makes the claim straightforward. For bonds issued before 1974, the claim can be filed without serial numbers.
If you only suspect a relative owned bonds, the Treasury’s own search tool, Treasury Hunt, was retired in September 2025.6TreasuryDirect. Treasury Hunt The remaining route is your state’s unclaimed property program, searchable at unclaimed.org.
Inherited Bonds From a Deceased Owner
What you have to do depends on how the bond was registered. If a surviving co-owner is named on the bond, that person becomes the sole owner on proof of the original owner’s death. If a beneficiary is named, the beneficiary takes ownership the same way.7eCFR. 31 CFR Part 315, Subpart L – Deceased Owner, Coowner or Beneficiary A certified death certificate is required.
If the bond was registered to a single owner with no co-owner or beneficiary, it becomes part of the estate. When the total redemption value of all Treasury securities in the estate is $100,000 or less, a family member can act as a “voluntary representative” and redeem the bonds without formal probate. The Treasury follows a set order of priority: surviving spouse first, then children, then other relatives.7eCFR. 31 CFR Part 315, Subpart L – Deceased Owner, Coowner or Beneficiary Above $100,000, formal estate administration through a court-appointed representative is required.
Taxes When You Cash In
Interest on Series E bonds is subject to federal income tax but exempt from state and local income tax.8TreasuryDirect. Tax Information for EE and I Bonds Owners could either report interest each year as it accrued or defer reporting until redemption. Most people deferred, which means cashing a long-held bond today generally produces a single lump-sum taxable event covering decades of accrued interest.9Internal Revenue Service. Savings Bonds The same tax bill applies to inherited bonds when the beneficiary or estate redeems them.
There is one carve-out worth knowing. If you use savings bond proceeds to pay qualified higher education expenses for yourself, your spouse, or a dependent, some or all of the interest may be excluded from federal income tax, subject to IRS income limits and other eligibility rules.9Internal Revenue Service. Savings Bonds
One boundary to note: the education exclusion is a feature of the savings bond program generally, and IRS guidance on it is written around EE and I bonds. If you plan to rely on it for a WW2-era Series E bond, confirm eligibility with a tax professional before redeeming, because a bond that has already reached final maturity has already stopped earning, and the timing of when interest is treated as received can matter.