Where to Cash Savings Bonds in Person

U.S. savings bonds represent a secure investment instrument backed by the full faith and credit of the U.S. government. These bonds are designed to help individuals save money over time, accruing interest until they are redeemed. While electronic savings bonds are now common, many individuals still hold paper bonds, often received as gifts or purchased years ago. Understanding the process for cashing these physical bonds is important for accessing their accrued value.

Locating a Cashing Institution

When seeking to cash a paper savings bond, individuals typically turn to financial institutions such as banks and credit unions. While many institutions offer this service, it is not universally available at every branch. Some institutions may also have policies requiring you to be an existing account holder, or to have maintained an account for a certain period, such as six months to a year, before they will process a bond redemption.

It is advisable to contact a local branch of your bank or credit union in advance to confirm their specific policies regarding savings bond redemptions. When calling, inquire whether they cash savings bonds, if they have any limits on the amount they will process in a single transaction, and if there are particular requirements for non-customers. This preliminary step can help ensure a smoother process upon your visit and prevent unnecessary trips.

Required Documentation and Information

Before visiting a financial institution to cash a savings bond, gathering the necessary documentation is essential. You must present the physical paper savings bond itself, which is the primary document proving ownership and value.

Alongside the bond, provide valid government-issued photo identification, such as a driver’s license or passport. Your Social Security Number (SSN) or Taxpayer Identification Number (TIN) is also required for identity verification and tax reporting. If your name has changed since the bond was issued (e.g., due to marriage), proof of the name change may be required.

Cashing Process and Considerations

Once at the financial institution with your bond and identification, the cashing process involves several steps to verify your identity and the bond’s eligibility. You will present the physical savings bond and your government-issued identification to a bank representative. The representative will verify your identity and confirm the bond’s details. You may then be required to sign the bond itself or a separate redemption form, often in the presence of the bank official. For redemptions exceeding $1,000, a certified signature, typically from a notary or authorized certifying officer, may be necessary.

Bonds must be held for at least one year from their issue date before they can be redeemed. If a bond is cashed before it has been held for five years, an interest penalty equivalent to the last three months of interest earned will be forfeited. Series EE and Series I bonds continue to accrue interest for up to 30 years, after which they stop earning interest and should be redeemed to avoid losing value to inflation.

Interest earned on savings bonds is subject to federal income tax, but it is exempt from state and local income taxes. Most bondholders defer reporting interest until redemption, when the total accrued interest becomes taxable. The financial institution will issue a Form 1099-INT for tax reporting purposes in the year of redemption.

Only the registered owner or co-owner can typically cash a bond. In situations involving minors, a parent can redeem a child’s bond if the child is too young to sign, and the parent resides with or has legal custody of the child. Specific language may need to be written on the bond or included on FS Form 1522 by the parent.

For bonds of deceased owners, if a co-owner or beneficiary is named, they can redeem the bond. If only the deceased owner is listed, the bond becomes part of the estate and may require specific legal documentation, such as a certified death certificate and relevant forms like FS Form 1522 or FS Form 5336, to be processed by an authorized representative of the estate. Banks may have varying limits on the maximum amount they will cash in a single transaction. Paper savings bonds must be redeemed for their full value; partial redemptions are not possible for physical bonds.

Alternatives to In-Person Cashing

While in-person cashing at a financial institution is a common method, other options exist for redeeming savings bonds. Electronic savings bonds, and paper bonds that have been converted, can be redeemed through a TreasuryDirect account. This online platform allows bondholders to manage their electronic securities and initiate redemptions directly into a linked bank account. Electronic redemptions typically process quickly, with funds often deposited within two business days. Unlike paper bonds, TreasuryDirect allows for partial redemptions of electronic bonds, provided a minimum of $25 is redeemed and at least $25 remains in the account.

Another alternative for paper bonds is redemption by mail directly through the U.S. Treasury. This process involves completing FS Form 1522, a specific form for requesting payment of United States Savings and Retirement Securities. The completed form, along with the physical bond(s), must be mailed to the address provided on the form. For redemptions exceeding $1,000 by mail, signature certification by a notary or an authorized certifying officer is generally required on the form. This method ensures payment is sent directly to your specified bank account.