How to cash in savings bonds: A step-by-step guide

Step 1: Identify your bond type and status

You need to know exactly what type of bonds you have and their current status before cashing in your savings bonds. The bond serial number is essential for identification and is required when using online calculators to determine your bond’s value. This step will give a clear picture of what you own and their worth before you redeem them.

After identifying your bond type, note that savings bonds come in denominations ranging from $25 to $10,000, depending on the series. For example, Series EE and Series I bonds are available in various denominations within this range.

Currently, Series EE and Series I are the only bonds issued by the U.S. Treasury, while other series, such as Series HH, are no longer available for purchase.

Series EE, I, and HH explained

The U.S. Treasury now issues two main types of savings bonds: Series EE bonds and I bonds. Each type comes with unique features that affect their value and how you can redeem them. Other Series EE bonds, including special editions, have unique features as well:

Series EE bonds

These Series EE bonds earn a fixed interest rate that stays unchanged for at least the first 20 years. Current EE bonds earn 2.70% interest (for bonds purchased between May 1, 2025, and October 31, 2025). Series EE bonds stand out because they double in value after 20 years. You can buy electronic EE bonds at face value, unlike older paper EE bonds, which were sold at half their face value. Other Series EE bonds, such as Patriot Bonds, have been issued for special purposes. Patriot Bonds are a special edition of Series EE bonds issued after 9/11 to support national recovery and defense efforts.

Series I bonds

These I bonds protect your investment from inflation and earn interest through a fixed rate plus an inflation rate that changes every six months. The current rate stands at 3.98% for bonds purchased between May 1, 2025, and October 31, 2025. This rate combines a fixed portion (1.10%) and an inflation-adjusted portion based on the Consumer Price Index for All Urban Consumers.

Series HH bonds

The Treasury stopped selling the HH savings bond in 2004, but many HH bonds might still earn interest. The HH savings bond works differently from EE and I bonds by paying interest straight to bondholders’ accounts every six months, rather than accruing it. All HH bonds reached final maturity as of August 1, 2024.

How to check if your bond has matured

The maturity status of your bond plays a vital role in cashing it in. Here’s what you should do:

1. Identify the issue date – Check the upper right corner of paper bonds or your TreasuryDirect account for electronic bonds.
2. Determine the series – Each series matures differently:

• Series EE and I bonds mature after 30 years
• Series HH bonds mature after 20 years. Some bonds may continue longer, earning interest until they reach their final maturity date, allowing you to maximize your returns over time.

3. Check for “MA” designation – Paper bonds show an “MA” notation in the calculator when they’ve matured and stopped earning interest.
4. Check early redemption rules – Hold bonds for at least 12 months before cashing, or you’ll face a three-month interest penalty if you cash them before five years.

Using the Treasury bond calculator

The Savings Bond Calculator helps you find your paper bond’s current value, earned interest, and maturity date. You can also check values for past or future dates within the current rate period.

Start by visiting the TreasuryDirect website and opening the Savings Bond Calculator. Enter these details:

• The bond’s series (EE, I, E)
• The denomination (face value)
• The issue date (month and year)

The calculator shows you:

• Current redemption value (the full value you would receive if you redeem the bond now)
• Total interest earned
• Year-to-date interest
• Current interest rate
• Next accrual date
• Final maturity date

Note that this calculator works with paper bonds only. Electronic bond values appear in your TreasuryDirect account, where you can view your current holdings and see details for each bond. You can also create and save a list of multiple paper bonds to track their values over time.

Financial institutions can use a special Savings Bond Valuation and Verification tool to check bonds’ authenticity and current value when customers want to cash them.

Step 2: Choose where to cash your bond

You’ve identified your savings bonds and checked their status. Now let’s figure out the quickest way to cash them in. You can redeem your savings bonds in three ways: at a bank or credit union, through TreasuryDirect online, or by mail. You can visit a bank or credit union, as both types of financial institutions are authorized to handle bond redemptions. Credit unions follow similar procedures to banks for cashing savings bonds.

How to cash in savings bonds at a bank

A financial institution is usually the most convenient place to cash paper savings bonds. To redeem your bonds, you must visit a local branch of your bank or credit union. Not all banks or credit unions provide this service, and those that do have specific rules:

1. Call ahead to verify if the bank or credit union cashes savings bonds and learn their requirements.
2. Bring proper identification (usually a government-issued photo ID like a driver’s license). If you are not the registered owner, you may need to provide legal evidence to prove your entitlement.
3. Take the physical bonds with you (unsigned).
4. Sign the bonds in the presence of the bank teller.

Banks or credit unions will only cash savings bonds for their existing customers, and some want you to have an account for a specific time. They can only cash paper Series E, Series EE, and Series I bonds – not electronic bonds or Series HH bonds.

How to cash in savings bonds online

Cashing electronic savings bonds and other securities through TreasuryDirect is straightforward:

1. Log in to your TreasuryDirect account
2. Go to the ManageDirect section
3. Under “Manage My Securities,” select the “cashing securities” option, which is used for both savings bonds and other eligible securities
4. View your current holdings and select the electronic savings bond or other security you wish to redeem
5. Choose either full or partial redemption (minimum $25, leaving at least $25 in your account)

The funds will typically arrive in your linked checking or savings account within two business days. This method gives you more flexibility since you can cash in partial amounts, unlike paper bonds that need full redemption.

Mail-in option using FS Form 1522

The mail-in option works if you don’t have a bank account or your bank won’t cash savings bonds:

1. Download and complete FS Form 1522, which is a paper form required for redeeming paper bonds by mail.
2. Bonds worth over $1,000 need your signature certified by a bank officer (not a notary public).
3. Include your direct deposit information on the form.
4. Mail the signed form with your unsigned paper bonds to the Treasury Retail Securities Services address listed on the form.

This method works for paper Series E, EE, and I bonds, and Series HH bonds that banks won’t cash. The same steps apply for redeeming other eligible paper bonds by mail.

Banks that cash savings bonds and their policies

Each bank has its own rules for cashing savings bonds:

Chase: Customers need accounts at least 12 months old; bonds must have a face value of $200 or less and a redemption value under $500

Wells Fargo: Needs active checking, savings, or CD accounts; $1,000 per day limit for accounts less than 12 months old

Bank of America: Needs an active checking or savings account

US Bank: Only helps customers with accounts five years or older

Capital One: Doesn’t cash savings bonds

PNC Bank: Requires a consumer checking or savings account 12 months or older

Most savings bonds can be redeemed at a bank or credit union once they reach maturity, which is typically after 20 to 30 years.

The Secret Service suggests banks should only cash bonds for customers who are 12 months old with the bank. The mail-in method using FS Form 1522 might be your best choice if you’re not a long-time customer.

Paper bonds need full redemption, but electronic bonds let you cash in portions as long as you keep and redeem at least $25.

Step 3: Gather required documents

You’ll need specific documents to cash your savings bonds after choosing where to do it. The Treasury Department and financial institutions protect your assets with strict requirements that help prevent fraud.

If you are not the registered owner or if special circumstances apply, additional documentation may be required to redeem the bonds. In certain cases, other documentation—such as proof of name change, beneficiary paperwork, or legal evidence of entitlement—may also be necessary to verify your right to cash the bonds.

Valid ID and Social Security Number

You’ll need a government-issued photo ID to cash your savings bonds. Here are the acceptable forms of ID:

• Driver’s license or state ID card that shows your photograph and physical description
• U.S. passport with your photograph and physical description
• Federal employee ID card with photograph
• Military ID with photograph

Financial institutions will verify that your signature matches the one you make on the bond at the time you cash bonds worth $1,000 or less. They need your ID to show your photograph or physical description, your signature, and the issuing authority’s verification.

Tax reporting requires your Social Security Number (SSN). You must provide your correct number if the SSN on the bond is wrong.

Proof of ownership or entitlement

Your identification serves as proof of entitlement if you’re the registered owner or co-owner listed on the bond. That makes the process straightforward.

You can’t cash the bond if your name only appears in the “Mail to” address. On top of that, it’s impossible to cash bonds at financial institutions if they show visible changes to names, addresses, or issue dates.

TreasuryDirect login credentials verify ownership of electronic bonds, which makes the process much simpler.

Special cases: beneficiaries and legal representatives

Beneficiaries need extra documentation to cash bonds. A certified death certificate of the bond owner is necessary if you’re named as a beneficiary (shown as “POD” – payable on death – on the bond). The state or local registrar must certify this certificate under seal.

Parents who cash bonds for minor children must meet these requirements:

• Have legal custody or be the custodial parent
• Confirm the child is too young to understand and sign
• Write on the bond: “I certify that I am the parent of [child’s name] with whom [child’s name] resides. [He/She] is [age] years old and is not of sufficient understanding to make this request.”

Legal representatives must show certified court documents that prove their authority. These documents need the court’s seal and must be current – usually issued within a year.

The Treasury requires attorneys-in-fact (those acting under the power of attorney) to submit redemption requests directly since they usually can’t cash savings bonds at financial institutions.

Step 4: Follow the redemption process

Your next step is to cash in your savings bonds after preparing documents and choosing your redemption method. Each method follows specific steps that ensure your transaction stays secure and accurate.

How to cash paper savings bonds

The teller at your financial institution will check your paper savings bond’s authenticity and look for any alterations. Here’s what you need to do:

1. Sign the “REQUEST FOR PAYMENT” section on the back of the paper bond while the bank officer watches
2. Update your current address and Social Security Number if they don’t match the paper bond
3. Show your ID for verification

Your bank will stamp “PAID” on the paper savings bond with the full redemption value, date, and branch details before paying you. Paper bonds must be cashed completely, which differs from electronic bonds.

How to cash in EE savings bonds electronically

TreasuryDirect makes electronic redemption simple and flexible:

1. Log into your TreasuryDirect account
2. Click the ManageDirect tab
3. Under “Manage My Securities,” select “Redeem securities”
4. Choose the bond(s) to redeem
5. Pick full or partial redemption (minimum $25, keeping at least $25 in the bond)
6. Select your linked bank account for deposit
7. Review and submit your request

How long does it take to cash in savings bonds?

Your payment timing depends on how you redeem:

• Bank redemption: You get paid right away for paper bonds
• Electronic redemption: Money shows up in your bank account within two business days
• Mail-in redemption: Processing takes at least two weeks for bonds in your name, maybe longer during busy periods

What to expect during the transaction

You’ll receive your bond’s current value, which combines the principal and earned interest. Notwithstanding that, redeeming before five years means you’ll lose the last three months of interest.

For certain bonds, such as HH savings bonds, interest payments are made directly to the bondholder’s account every six months. The interest you earn on savings bonds faces federal income tax but stays free from state and local taxes. Banks provide a 1099-INT form either on the spot or by mail in January. Electronic redemptions make your 1099-INT available in your TreasuryDirect account by January.

Your financial institution reports bond redemptions to the IRS, especially when transactions exceed certain amounts. This makes accurate Social Security Number information crucial.

Step 5: Understand post-cash considerations

Your next steps after cashing in savings bonds should include several key financial decisions. You may choose to buy savings bonds again as a safe investment option. You can purchase savings bonds directly from the Treasury or authorized financial institutions. Smart management of your post-redemption funds can help you get the most value from your investment and steer clear of potential issues.

Tax implications of cashing savings bonds

The interest you earn from redeemed bonds will need to be reported for tax purposes. Federal income tax applies to your bond interest, though state and local income taxes don’t. Your financial institution or TreasuryDirect account will send you a Form 1099-INT by January 31 of the year after redemption.

You have two choices for tax reporting:

1. Deferred reporting – Most people choose this option and report interest only in the year they cash the bond
2. Annual reporting – You can report interest earned each year before cashing the bond

It’s worth mentioning that the Education Savings Bond Program might let you skip federal income tax on bond interest if you use the money for qualified education expenses. Income limits and specific rules apply, so talking to a tax professional could be helpful.

What to do with the funds after redemption

The money from your redeemed bonds opens up several investment possibilities:

• Reinvest in higher-yielding opportunities – Other investment options might give better returns now that inflation has moderated
• Open a certificate of deposit (CD) – These accounts are federally insured and lock in fixed interest rates
• Explore money market accounts – You’ll earn more interest than regular savings accounts while keeping easy access to your money
• Transfer to investment accounts – You can move your TreasuryDirect funds to accounts with diverse investment choices

Your current financial goals should guide your decision about where to put these funds.

Rates Updated on August 16, 2025

How to avoid penalties for early redemption

Here’s how to get the most from your savings bonds:

• Hold bonds for at least 12 months – You can’t cash bonds before one year under any situation
• Keep bonds for at least five years – Early redemption means losing the last three months of interest
• Redeem on the first business day of the month – Bonds earn monthly interest, so this timing ensures you get all your previous month’s earnings
• Track maturity dates – Bonds stop earning interest after 30 years, so holding them longer doesn’t make financial sense

Sometimes, early redemption might make sense even with the penalty. You’ll need to compare the cost against potential gains from other investments.

Conclusion

The process of cashing in U.S. savings bonds needs attention to detail. Hopefully, this article will help make it straightforward and stress-free. Your first step is to know what type of U.S. savings bonds you own – Series EE, I, or HH/HH. This knowledge will help you determine their current value and maturity status. You should also check if your bonds have matured to avoid losing money to inflation.

You have several ways to cash in your U.S. savings bonds. Visit your bank, redeem online through TreasuryDirect, or mail in your request. Pick the method that works best for you to save time and avoid frustration. Banks have different policies about who can cash bonds and their amounts, so it’s best to call ahead.

The process becomes quicker when you have all your documents ready. You’ll need a valid ID, Social Security number, and proof that you own the bonds. Parents cashing bonds for children and beneficiaries need extra paperwork.

Paper and electronic U.S. savings bonds have different redemption processes. Learning these steps beforehand helps you avoid any surprises. Electronic redemptions take about two business days to hit your bank account. Paper bonds cashed at banks give you immediate payment.

Tax planning is a vital part of your financial health after cashing U.S. savings bonds. The federal government taxes your bond interest, but you might get tax benefits if you use the money for education. Think about where to put your money next to keep it growing.

Timing plays a substantial role in this process. You must wait at least one year to cash U.S. savings bonds, and waiting five years helps you dodge interest penalties. Keep track of maturity dates so you don’t hold onto bonds that have stopped earning interest.