What Do You Need to Cash a Savings Bond?

United States savings bonds represent a secure form of U.S. government debt, designed to offer a safe investment avenue for individuals. They are often purchased as gifts, for educational savings, or as part of a conservative financial strategy. Understanding the redemption process is important when accessing funds from these bonds. This guide outlines the steps involved in cashing a savings bond, from verifying eligibility and value to preparing necessary documentation and executing the transaction.

Determining Eligibility and Value

Before attempting to cash a savings bond, it is important to confirm who is legally entitled to redeem it and ascertain its current worth. An original owner or a co-owner listed on the bond can redeem it. If the original owner is deceased, a legal representative of the estate or designated beneficiaries may cash the bond with appropriate legal documentation. For minors, a parent or legal guardian acts on their behalf.

To determine the current redemption value of a paper savings bond, use the TreasuryDirect website’s Bond Value Calculator. This online tool requires specific information such as the bond’s serial number, denomination, and issue date to provide an accurate valuation. Savings bonds, including EE and I bonds, must be held for a minimum of one year from their issue date before cashing. Interest accrual on these bonds ceases after 30 years from their issue date, so redeem them before this point for maximum returns.

Gathering Necessary Documents and Information

Cashing a savings bond requires specific documentation, which varies depending on the redemption circumstances. For in-person transactions, valid government-issued photo identification, such as a driver’s license or passport, is required to verify the identity of the person presenting the bond. The physical paper savings bond must also be presented for redemption.

Additional documentation becomes necessary for special circumstances. If the bond owner is deceased, individuals seeking to cash the bond will need to provide a certified copy of the death certificate and proof of their legal authority, such as letters testamentary or letters of administration, which designate them as the executor or administrator of the estate. For bonds owned by a minor, the parent or legal guardian must present their own identification along with documentation proving their legal relationship or guardianship. If a savings bond has been lost, stolen, or destroyed, a specific form, Treasury Form PD F 1048, is required to request reissuance or payment. This form necessitates detailed information about the missing bond, including its serial number, the exact names of the owners, their addresses, and Social Security numbers.

Cashing Your Savings Bond

Once eligibility and value have been confirmed, and all necessary documents gathered, the next step involves redeeming the savings bond. Many financial institutions, including banks and credit unions, offer in-person redemption. The process typically involves presenting the physical bond and required identification to a teller. The bondholder will then be asked to sign the bond, and payment can be received either in cash or as a direct deposit into an account.

For bonds that cannot be cashed at a local financial institution, or for those preferring direct redemption through the Treasury, redemption by mail is an option. This process often requires the bondholder to sign the bond in the presence of a certifying officer at a financial institution, who certifies the signature. Any additional required forms, such as FS Form 1522 for specific redemption types, must be completed and included. The package, containing the signed bond and any supporting documentation, is then mailed to the appropriate address provided by the Treasury. Electronic savings bonds held within a TreasuryDirect account offer the most streamlined redemption process, allowing bondholders to initiate a request directly through their online account by logging in and selecting the appropriate transaction option.