Where Do I Cash a Savings Bond?

U.S. savings bonds are a low-risk investment issued by the United States government. Backed by the full faith and credit of the U.S. Treasury, they offer a secure way to grow funds over time. Individuals purchase these bonds for financial goals like education, retirement, or other significant life events.

Determining Your Bond’s Readiness for Cashing

Before cashing a savings bond, confirm its eligibility and gather necessary information. Bonds must be held for at least one year from their issue date. Cashing a bond before five years results in forfeiture of the last three months of interest. Most savings bonds, including Series EE and Series I bonds, earn interest for up to 30 years, reaching final maturity and ceasing interest accrual. Check the issue date to ensure the bond is still earning interest.

Required Information and Bond Condition

The bond must be in the holder’s name, a listed beneficiary, or a co-owner for redemption. When cashing a paper savings bond, a valid government-issued photo identification, such as a driver’s license or passport, is required. The bondholder’s Social Security Number or Taxpayer Identification Number is also necessary. Paper bonds should be in good condition, legible, and unaltered for processing.

Checking Bond Value

To determine the current value of a paper savings bond, use the Savings Bond Calculator on the TreasuryDirect website by entering the bond’s series, denomination, and issue date. For electronic bonds, the value is accessible by logging into your TreasuryDirect account.

Cashing a Paper Savings Bond

Paper savings bonds can be redeemed at many financial institutions or by mailing them directly to the Treasury Retail Securities Site. Many banks and credit unions offer this service, but some may require you to be an account holder or limit the number of bonds they cash. Contact the institution beforehand to confirm their requirements. When cashing a paper bond at a bank, present the physical bond and valid government-issued photo identification, then endorse the bond in the presence of a bank representative. The entire value of a paper bond must be cashed, as partial redemption is not possible.

Paper savings bonds can also be redeemed by mail through the Treasury Retail Securities Site. This involves completing FS Form 1522, a request for payment of U.S. savings and retirement securities. The form requires details such as the bondholder’s name, Social Security Number, bond serial numbers, and issue dates. If the total value exceeds $1,000, the bondholder’s signature on FS Form 1522 must be certified by a notary public.

Mail the completed form and physical bonds to the address provided on FS Form 1522. Payment will be made via direct deposit, requiring bank routing and account information. The mailing address for the Treasury Retail Securities Site is P.O. Box 214, Minneapolis, MN 55480-0214.

Cashing an Electronic Savings Bond

Electronic savings bonds, held in a TreasuryDirect account, are redeemed directly through the online system. Log into your TreasuryDirect account, navigate to the “ManageDirect” tab, and select “Redeem securities” or a similar link. The system will display available electronic bonds for redemption. You can choose which specific bonds to cash.

Electronic bonds allow for partial redemption; you can cash a portion of the bond’s value, provided at least $25 remains in the account or the redeemed amount is at least $25. After selecting the bonds and confirming the redemption amount, funds are deposited directly into the bank account linked to your TreasuryDirect account.

Receiving Funds and Tax Considerations

After cashing a savings bond, the timeframe for receiving funds depends on the redemption method. Funds for electronic bonds redeemed through TreasuryDirect are deposited into the linked bank account within approximately two business days. For paper bonds cashed at a financial institution, funds may be available immediately or deposited within a few business days, depending on bank policies. If paper bonds are mailed to the Treasury Retail Securities Site, processing and direct deposit can take several weeks.

Interest earned on U.S. savings bonds is subject to federal income tax. A tax advantage is that interest is exempt from state and local income taxes. Bondholders can defer reporting interest until the bond matures or is redeemed, or report it annually. Most individuals defer until redemption. Upon redemption, a Form 1099-INT is issued to report the total interest earned for federal tax filing.