Where Can I Cash My U.S. Savings Bond?

U.S. savings bonds are debt securities issued by the U.S. Department of the Treasury, representing a loan from an individual to the federal government. They are considered a secure, low-risk investment. These bonds accrue interest over time and can be redeemed for their face value plus earned interest. Different types of savings bonds exist, such as Series EE and Series I bonds.

Eligibility and Preparation for Cashing

Before cashing a U.S. savings bond, understand the eligibility requirements and gather documentation. Savings bonds must be held for a minimum of one year from their issue date before redemption. Redeeming a bond before five years incurs a penalty, forfeiting the last three months of interest earned.

The individual cashing the bond must be the registered owner, a co-owner, designated beneficiary, or legal representative. Proper identification is mandatory, requiring a valid government-issued photo ID such as a driver’s license or passport. For paper bonds, the physical bond is required.

Electronic bonds are managed and redeemed through a TreasuryDirect account. To determine a bond’s current value and issue date, individuals can use the TreasuryDirect website’s online calculator or access their TreasuryDirect account. Additional documentation may be necessary depending on the circumstances, such as death certificates for beneficiaries or court orders for legal representatives. If a paper bond is damaged or altered, it may need to be mailed directly to the U.S. Treasury for processing.

Common Locations and Methods for Cashing

U.S. savings bonds can be cashed through several avenues, for both paper and electronic formats. Most commercial banks and credit unions offer redemption services for paper savings bonds. These financial institutions typically cash bonds for their account holders, though some may extend this service to non-customers, provided proper identification is presented. It is advisable to contact the specific bank or credit union beforehand to confirm their policies and any limitations on the types or amounts of bonds they will redeem.

For electronic savings bonds, the primary method of redemption is through TreasuryDirect, the U.S. Department of the Treasury’s online platform. This website allows bondholders to manage their electronic securities and initiate redemption requests. Paper bonds can also be converted to electronic form within TreasuryDirect, enabling subsequent online redemption.

In situations where a financial institution cannot process a bond or for specific types of older bonds, redemption by mail directly with the U.S. Treasury is an option. This method involves sending the bond and required forms to the Treasury’s processing site.

The Cashing Process and Key Considerations

Cashing a savings bond at a financial institution involves presenting the paper bond and valid government-issued photo identification to a teller. Sign the bond in the presence of the financial institution’s representative. Payment is generally issued through direct deposit, check, or cash, depending on the institution’s policies and the redemption amount.

For electronic bonds held in a TreasuryDirect account, the process is completed online. After logging into your account, navigate to the “Manage My Securities” or “Redeem Securities” section. Select the specific bond(s) for redemption and choose the linked bank account where the funds should be deposited. The transaction is confirmed, and funds are usually transferred within one to two business days. Electronic bonds can be partially redeemed, provided a minimum of $25 remains in the account, while paper bonds must be cashed for their full value.

Cashing a paper bond by mail requires completing FS Form 1522, “Special Form of Request for Payment of United States Savings and Retirement Securities.” Endorse the bond as instructed on the form. If the redemption value exceeds $1,000, your signature requires certification by a notary or an authorized certifying officer from a financial institution. Mail the completed form and the bond to the specific Treasury address provided on the form.

Interest earned on savings bonds is subject to federal income tax but is exempt from state and local income taxes. Tax on this interest can be deferred until the bond is redeemed or matures. Upon redemption, the interest earned will be reported to the IRS on Form 1099-INT, which you will receive from the cashing institution or TreasuryDirect. If a bond is lost or stolen, report it to the Treasury Retail Securities Site. A process involving forms like FS Form 1048 is required for replacement before cashing.