To cash in savings bonds, take paper bonds to a bank or credit union where you have an account, or log in to TreasuryDirect to redeem electronic bonds and have the proceeds deposited to your linked bank account. If no local bank will handle your paper bonds, you can mail them to the Treasury with FS Form 1522. Before you do any of this, check two things: whether the bond has stopped earning interest, and how long you’ve held it, because cashing too early costs you three months of interest.
Check the Bond’s Value and Whether It Still Earns Interest
Series EE and Series I savings bonds earn interest for 30 years from their issue date, then stop.1eCFR. 31 CFR Part 351 Subpart B – Maturities, Redemption Values, and Investment Yields of Series EE Savings Bonds2TreasuryDirect. I Bonds A bond issued in 1995 or earlier has already hit final maturity, and older Series E bonds (issued before 1980) and Series HH bonds stopped earning years ago. If you’re holding one of those, it’s sitting there losing purchasing power.
The series name, serial number, and issue date are printed on the face of a paper bond. Plug those details into the Savings Bond Calculator at TreasuryDirect.gov and you’ll see the current redemption value, including all accrued interest, before you make a trip to the bank.3TreasuryDirect. Savings Bond Calculator
One thing to know about Series EE bonds: the Treasury guarantees that any EE bond purchased since May 2005 will double in value at the 20-year mark, adding a one-time adjustment if the interest rate alone wouldn’t get it there.4TreasuryDirect. EE Bonds Cashing an EE bond a month before its 20th birthday means walking away from that adjustment.
Wait Out the 12-Month Lockup and the Three-Month Penalty
You cannot cash a savings bond during the first 12 months after purchase. This applies to both Series EE and Series I bonds issued on or after February 1, 2003.5TreasuryDirect. Minimum Holding Period for Savings Bonds Extended to 12 Months Older bonds had a shorter six-month minimum, which still applies to those specific bonds.
Cash any time between year one and year five and you forfeit the last three months of interest. The Treasury calculates your payout as if the bond had been earning for three fewer months than it actually was.1eCFR. 31 CFR Part 351 Subpart B – Maturities, Redemption Values, and Investment Yields of Series EE Savings Bonds2TreasuryDirect. I Bonds After five full years, the penalty disappears. If you’re four years and nine months in, waiting a few weeks is often worth it.
Cashing Paper Bonds at a Bank or Credit Union
The fastest way to cash a paper bond is to walk it into a bank or credit union where you already have an account. Bring a valid government-issued photo ID: a driver’s license, passport, or military ID all work. The teller verifies you’re the registered owner or co-owner, calculates the current value, and either hands you cash or deposits the funds.
Banks are not required to cash bonds for non-customers. The Secret Service actually recommends that banks decline bond transactions for anyone who hasn’t held an account with them for at least 12 months.6TreasuryDirect. The Guide to Cashing Savings Bonds (FS Publication 0022) Even banks that will serve non-customers often cap a single transaction at $1,000 in total bond value. If you’re planning to redeem a stack worth more than that and you don’t have an existing account somewhere, opening one before the trip saves you a wasted visit.
Cashing Paper Bonds by Mail
If no local bank will handle your redemption, mail the bonds to the Treasury. Download FS Form 1522 from TreasuryDirect.7TreasuryDirect. Cash EE or I Savings Bonds The form asks for your Social Security Number, a list of the bonds, and your bank routing and account numbers for direct deposit.
If the total value of what you’re cashing exceeds $1,000, your signature on the form must be certified. Sign in front of a bank officer or credit union employee who will apply the institution’s official stamp or seal, or use a notary public.8TreasuryDirect. FS Form 1522 – Special Form of Request for Payment of United States Savings and Retirement Securities Bonds totaling $1,000 or less don’t need certification.
Mail the completed form and the physical bonds to Treasury Retail Securities Services, P.O. Box 9150, Minneapolis, MN 55480-9150.9TreasuryDirect. Contact Us Processing takes at least six weeks and heavy mail volume can stretch that. Send everything by certified mail or with tracking. Until the Treasury logs the bonds into their system, they’re irreplaceable documents in transit.
Cashing Electronic Bonds Through TreasuryDirect
Electronic bonds are the easy case. Log in to your TreasuryDirect account, pick the bond you want to redeem, and use the cash-out function. Redeem the full value or any partial amount of $25 or more (in penny increments above that floor). Proceeds transfer to the bank account linked to your profile, generally within a few business days.
Cashing Bonds You Inherited
What happens with a deceased person’s bonds depends on how the bond was registered.
If you’re named as a co-owner, the bond becomes yours automatically when the other co-owner dies. Same result if you’re named as beneficiary (shown as “POD,” payable on death, in the registration). Either way, you provide proof of the owner’s death and can cash the bond or have it reissued in your name alone.10eCFR. 31 CFR Part 315 Subpart L – Deceased Owner, Coowner or Beneficiary
If the bond names only a sole owner with no co-owner or beneficiary, it belongs to the estate. When the estate isn’t going through probate, a person can step in as “voluntary representative” using FS Form 5336 and either cash the bonds or distribute them under the deceased’s state of residence.11TreasuryDirect. Non-Administered Estates You’ll need a certified copy of the death certificate, your banking information if you’re taking payment, and a bank-certified signature on the form.12TreasuryDirect. FS Form 5336 – Disposition of Treasury Securities Belonging to a Decedent’s Estate Being Settled Without Administration If the estate is going through probate, the court-appointed personal representative handles the bonds using letters testamentary or letters of administration along with the death certificate.
Lost the paper bond entirely? The Treasury keeps records of all bonds issued and can replace or cash one it finds in the system. File FS Form 1048 with whatever you can supply: approximate issue date, names on the bond, denomination, and any serial numbers.13TreasuryDirect. Get Help for Lost, Stolen, or Destroyed EE or I Savings Bond
Federal Tax on the Interest
Savings bond interest is subject to federal income tax but exempt from state and local income taxes.14TreasuryDirect. Tax Information for EE and I Bonds You owe tax only on the interest portion, not on your original purchase price.
Most bondholders use the cash method: no interest is reported until you actually cash the bond or it reaches final maturity, whichever comes first. You can instead choose to report interest annually as it accrues, which spreads the tax across the bond’s life.15Internal Revenue Service. Publication 550 (2025), Investment Income and Expenses
Here’s what catches people. When you cash a paper bond, the 1099-INT you receive covers all interest earned over the bond’s entire lifetime, not one year’s worth.14TreasuryDirect. Tax Information for EE and I Bonds A bond that’s been earning for 20 years drops 20 years of interest onto a single return. If you have a stack of matured bonds, splitting the redemptions across two or more tax years keeps you out of a higher bracket.
The Education Exclusion Can Wipe Out the Tax
You may be able to exclude savings bond interest from federal tax entirely if you use the proceeds for qualified higher education expenses in the same year you cash the bonds. The exclusion applies to Series EE bonds issued after 1989 and all Series I bonds, and you must have been at least 24 years old when the bonds were issued.16Internal Revenue Service. Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989
Qualifying expenses are tuition and fees required for enrollment at an eligible college, university, or vocational school. Contributions to a 529 plan or Coverdell Education Savings Account also count. Room and board do not qualify, and courses in sports or hobbies outside a degree program don’t either.16Internal Revenue Service. Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989
The exclusion phases out at higher incomes. For 2026, the phase-out begins at $101,800 in modified adjusted gross income for single filers and $152,650 for married couples filing jointly, and disappears completely at $116,800 for single filers and $182,650 for joint filers. Married filing separately can’t claim it at all. Claim the exclusion by filing IRS Form 8815 with your return for the year you cashed the bonds and paid the qualifying expenses.