If you have a U.S. savings bond sitting in a drawer or in a TreasuryDirect account, you have three practical choices: hold it, cash it, or change whose name is on it. What to do with a savings bond depends on how old it is, whether it is paper or electronic, and whether you actually need the money now. Both Series EE and Series I bonds earn interest for 30 years and then stop cold, so the one thing you should not do is forget about a bond past its maturity date.
Find Out What Your Bond Is Worth
Before you decide anything, look up the current value. On a paper bond, the series (EE or I), the denomination, and the issue date are printed on the front. Plug those into the Savings Bond Calculator on the TreasuryDirect website and you will see the accumulated value through the current period, the next interest accrual date, and the final maturity date.1TreasuryDirect. Savings Bond Calculator For electronic bonds, the calculator does not apply; log in to your TreasuryDirect account and the current value shows on your holdings page.
The value can surprise you. Series EE paper bonds issued from 1980 through April 2005 were sold at half of face value, so a $50 bond cost $25 and has been growing from there for decades.2TreasuryDirect. EE Bonds 1980 Through April 1995 Electronic EE bonds bought from May 2005 onward are sold at full face value and are guaranteed to at least double after 20 years.3TreasuryDirect. EE Bonds May 2005 and Later Series I bonds are always sold at face value and earn a composite rate that resets every six months based on inflation.4TreasuryDirect. I Bonds
Both series stop earning interest 30 years after issue.5eCFR. 31 CFR Part 351 – Offering of United States Savings Bonds, Series EE6TreasuryDirect. Comparing EE and I Bonds After that, the bond does nothing except sit there, and the interest becomes taxable whether you cash it or not. If your calculator lookup shows a maturity date in the past, cash the bond soon so you at least have the money in hand for the tax bill you already owe.
When You Can Cash It Without a Penalty
You cannot redeem an EE or I bond during the first 12 months after purchase at all. Between one year and five years, you can cash it, but you forfeit the last three months of interest.7TreasuryDirect. EE Bonds Cash it at 18 months and you keep 15 months of interest. After five years, there is no penalty.8eCFR. 31 CFR 359.7 – If I Redeem a Series I Savings Bond Before Five Years After the Issue Date, Is There an Interest Penalty?
Even with the early-cash penalty, you never get back less than you paid for the bond.8eCFR. 31 CFR 359.7 – If I Redeem a Series I Savings Bond Before Five Years After the Issue Date, Is There an Interest Penalty? Only earned interest is at risk, not principal. If you are close to the five-year line, waiting a few months to clear it is usually worth it.
How to Actually Cash a Bond
Paper Bonds at a Bank
Most people cash paper bonds at their own bank or credit union. Banks are required to cash eligible bonds for established account holders with proper identification. If you don’t have a longstanding account, the bank can refuse; the Secret Service specifically recommends banks not cash bonds for anyone who has been a customer for fewer than 12 months.9TreasuryDirect. FS Publication 0022 – The Guide to Cashing Savings Bonds Call ahead if you’re unsure.
Bring a valid government-issued photo ID and know your Social Security number, which must match the registration on the bond.10eCFR. 31 CFR 315.39 – Surrender for Payment If your name has changed since the bond was issued, bring a marriage certificate or court order linking the old name to the new. The back of the bond has a “request for payment” area; do not sign it in advance. Sign it in front of the bank officer who witnesses the signature.
By Mail to the Treasury
If the bank won’t handle your bonds, or the ownership is complicated, or the dollar amount is high, you can mail the bonds directly to the Treasury. Fill out FS Form 1522, have your signature certified by a notary or authorized officer, and send the form and bonds by certified or registered mail to Treasury Retail Securities Services, P.O. Box 9150, Minneapolis, MN 55480-9150.11TreasuryDirect. FS Form 1522 – Special Form of Request for Payment of United States Savings Bonds Payment is deposited into the bank account you list on the form.
Processing runs at least six weeks for bonds in your own name and at least two months if the bonds are not in your name but you’re authorized to handle them. Trust cases can take ten months or longer.12TreasuryDirect. Contact Us – Section: Processing Times Plan accordingly.
Electronic Bonds in TreasuryDirect
If the bond is in a TreasuryDirect account, log in, go to ManageDirect, and select “Redeem securities” under Manage My Securities.13TreasuryDirect. Cashing EE or I Savings Bonds Pick the bonds, confirm the deposit account, and the redemption usually completes within two business days.
If the Owner Has Died
Rules differ by how the bond is registered. A surviving co-owner is treated as sole owner with proof of the other co-owner’s death. A named beneficiary can claim the bond with proof of the owner’s death. A bond registered to a single owner with no beneficiary becomes part of the estate, and the legal representative must present letters of appointment dated within the past year or comparable court documentation.14eCFR. 31 CFR Part 315 Subpart L – Deceased Owner, Coowner or Beneficiary
Changing the Name on a Bond
You can reissue a bond to add or remove a co-owner, fix a name error, or comply with a court order. Reissued bonds are converted to electronic form in the new owner’s TreasuryDirect account. The issue date does not change, so the bond keeps earning on the same schedule and matures on the same day it would have otherwise.15TreasuryDirect. Changing Information About EE or I Savings Bonds (Reissuing) For paper bonds, submit FS Form 4000 with the original certificates.16TreasuryDirect. FS Form 4000 – Request To Reissue United States Savings Bonds If two living co-owners want to change anything beyond a simple name correction, both must sign.
Lost, Stolen, or Destroyed Paper Bonds
File FS Form 1048 to request either a replacement bond (issued electronically, so you’ll need a TreasuryDirect account) or a direct cash payment to your bank account.17TreasuryDirect. Get Help for Lost, Stolen, or Destroyed EE or I Savings Bonds If you know the serial number, use the standard form. If you don’t, and the bond was issued in 1974 or later, run a search on Treasury Hunt at TreasuryDirect; if it finds the bond, the site produces a version of the form with a reference number so you don’t need the serial. For bonds issued before 1974 without a known serial, a separate version of FS Form 1048 handles that case.
Sign the form before a notary or certifying official and mail it to Treasury Retail Securities Services. Search-based requests take at least seven months.12TreasuryDirect. Contact Us – Section: Processing Times If the original bond turns up after a replacement is issued, it belongs to the government and must be returned.
What You’ll Owe in Taxes
Savings bond interest is subject to federal income tax and exempt from state and local income tax.18TreasuryDirect. Tax Information for EE and I Bonds The taxable amount is the difference between what you paid and what you received at redemption. Most bondholders defer the tax until they cash the bond or it hits final maturity, whichever comes first.19Internal Revenue Service. Topic No 403 – Interest Received
When you cash a paper bond at a bank, the bank issues a Form 1099-INT either shortly after the transaction or by January 31 of the following year. For electronic redemptions, the 1099-INT posts inside your TreasuryDirect account by January 31.18TreasuryDirect. Tax Information for EE and I Bonds Report the amount on your federal return. Skipping it invites IRS penalties and interest.
One trap worth flagging: if a bond passed its 30-year maturity and you never cashed it, the IRS still considers the interest taxable in the year the bond stopped earning. No 1099-INT lands in your mailbox automatically, but the reporting obligation is yours.
Using the Bond for Education
You may be able to exclude some or all of the interest from federal tax if you use the proceeds for qualified higher education expenses. Every one of these conditions must be met:20TreasuryDirect. Using Bonds for Higher Education
- You were at least 24 years old before the bond’s issue date.
- You cash the bond in the same tax year you pay the education expenses.
- The expenses are for you, your spouse, or a dependent listed on your tax return, at an eligible institution (generally an accredited college, university, or vocational school).
- Your filing status is anything other than married filing separately.
- Your modified adjusted gross income is below the annual cutoff.
For tax year 2025, the exclusion phases out between $99,500 and $114,500 for single filers, and between $149,250 and $179,250 for married filing jointly.21Internal Revenue Service. Publication 970 – Tax Benefits for Education The thresholds adjust each year for inflation, so check the current IRS Form 8815 for updated figures. File Form 8815 with your return to claim it.20TreasuryDirect. Using Bonds for Higher Education