You can cash U.S. savings bonds in two places: paper Series EE and Series I bonds at most banks and credit unions, and electronic bonds online through your TreasuryDirect account. If a bank turns you away or your bond is worth more than the branch will pay out in one visit, you can mail the paper bond to the Treasury for redemption instead.
Cashing Paper Bonds at a Bank or Credit Union
Most commercial banks and credit unions will redeem paper Series EE and Series I bonds, acting as agents for the federal government. Each institution sets its own rules, though, so call the branch before you go and ask three things: whether they cash savings bonds at all, how much they will pay out in a single visit, and what identification you need to bring.1TreasuryDirect. Cashing EE or I Savings Bonds
Expect the bank to want an existing customer relationship. The U.S. Secret Service recommends that financial institutions verify a customer relationship of at least 12 months before processing a savings bond redemption, and many banks follow that guidance.2Federal Reserve Financial Services. Savings Bond Redemptions Frequently Asked Questions Banks also cap the dollar amount they will cash per visit, and those caps vary. A small credit union may handle less per transaction than a large national bank. If your bond exceeds the branch limit, mailing it to the Treasury is your fallback.
Bring the physical bonds in their original condition. Do not sign the back until the teller tells you to.1TreasuryDirect. Cashing EE or I Savings Bonds When the bank can process the redemption, you typically walk out with the funds the same day.
Cashing Electronic Bonds Through TreasuryDirect
If you bought your bonds through TreasuryDirect.gov, they exist only in electronic form and banks cannot touch them. Log into your account, select the bond, and confirm the bank account you want the money sent to. The funds usually land in that account within two business days.3TreasuryDirect. TreasuryDirect Help – How Do I…?
You can cash all of an electronic bond or part of it. For a partial redemption, you have to cash at least $25 and leave at least $25 in the bond.
Mailing Paper Bonds to the Treasury
When no bank will help you, or when the bond is larger than a branch will cash in one sitting, send the bond to the Treasury directly. Download FS Form 1522 from TreasuryDirect.gov, fill it out, and mail it with your original unsigned bonds to:4TreasuryDirect. FS Form 1522 – Special Form of Request for Payment of United States Savings and Retirement Securities
Treasury Retail Securities Services
P.O. Box 9150
Minneapolis, MN 55480-9150
Use a trackable mailing method. Once the Treasury receives your bonds, you cannot get the originals back. Processing takes at least six weeks for bonds where you are the named owner.5TreasuryDirect. Home – TreasuryDirect Payment comes either by direct deposit to the bank account you list on the form or by check to your address.
Identification and Signature Certification
What you have to prove about your identity depends on how much you are cashing at once:4TreasuryDirect. FS Form 1522 – Special Form of Request for Payment of United States Savings and Retirement Securities
- $1,000 or less in total value: sign FS Form 1522 and enclose a copy of your driver’s license, passport, state ID, or military ID. No signature certification is required.
- More than $1,000 in total value: your signature has to be certified. That means appearing in person before a notary public or an authorized certifying officer at a bank or credit union. A medallion signature guarantee stamp from a Treasury-recognized program also works.
You will also need to provide your Social Security number so the interest can be reported to the IRS.
If the Owner Has Died
If the bond belonged to someone who has died, the route depends on how the bond is registered and your role. A bank can sometimes handle straightforward cases, such as a surviving co-owner cashing a bond registered in both names. For estate administration and other complex situations, you will likely need to work directly with the Treasury and provide FS Form 1522 with certified signature, the unsigned bonds, a death certificate for each deceased owner, and court documentation of your authority to act.6TreasuryDirect. Court-Appointed Representatives
When You Are Allowed to Cash
Regardless of where you take the bond, you cannot cash it during the first 12 months after it was issued. That lock applies to both Series EE and Series I bonds.7TreasuryDirect. I Bonds
Cash a bond after 12 months but before five years from the issue date, and you lose the last three months of interest as a penalty. Redeem at 18 months, for example, and you receive 15 months of interest.8eCFR. 31 CFR Part 351, Subpart B – Maturities, Redemption Values, and Investment Yields of Series EE Savings Bonds Your redemption value never drops below what you originally paid; the penalty only cuts into interest. After five years there is no penalty, and the bond continues earning interest for up to 30 years.
Tax Paperwork After You Cash
Savings bond interest is subject to federal income tax but exempt from state and local income taxes.9TreasuryDirect. Tax Information for EE and I Bonds Most people report all the interest in the year they cash the bond or the year it matures, whichever comes first.
Who sends the Form 1099-INT depends on where you cashed the bond. A bank that redeems a paper bond issues its own 1099-INT. If you mailed paper bonds to the Treasury, the Treasury mails the 1099-INT by January 31 of the following year. For electronic bonds cashed through TreasuryDirect, the 1099 is posted inside your account by January 31, and you get an email when it is ready.10TreasuryDirect. 1099 Tax Statements for Paper Savings Bonds and TreasuryDirect