How do I cash in old savings bonds?

You can cash most savings bonds at a bank or credit union. For paper and electronic bonds, you can also use TreasuryDirect's site.

How can I cash in a savings bond if I'm not the original owner?

You must present legal documentation giving you the authority to act. For example, a power of attorney or death certificate plus a will or court order is appropriate documentation. Also, you may have to complete Form FS 1522 or Form FS 1455.

Can I deposit bonds directly into my bank account?

Yes, once the bonds are cashed, you can directly deposit these funds into a checking or savings account.

Can you cash savings bonds at any bank?

Most major banks and credit unions will cash savings bonds. Some may have limits to what can be cashed.

Do I pay taxes when I cash in savings bonds?

Yes, interest earned on the bond is subject to federal income tax. Most people report the interest in the year the bond is cashed.

Is there a bad time to cash in savings bonds?

If you cash your savings bond before five years, you will lose three months' worth of interest. Also, you won't get the maximum benefit if you cash right before the interest accrual month.

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How To Cash in Savings Bonds: 2025 Guide

July 18, 2025

10 min Read

Written by Rudri Patel

Edited by Elizabeth Constantineau

A smiling woman holds a stack of cash in both hands, appearing excited and happy against a neutral background.

Dean Drobot / Shutterstock.com

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You can cash a savings bond in person at your bank or credit union, via mail or electronically at the TreasuryDirect website. It is important to bring or have access to proper identification, your original bond and any supporting legal documents. Here’s a closer look at the steps for each bond-redemption method.

When Can You Cash in Savings Bonds?

Time Held	Can You Redeem?	Penalty
After 12 months	Yes	Early penalty applies before five years
Before five years	Yes	Lose the last three months of interest
After five years up to 30 years	Yes	No penalty
After 30 years	Yes	No further interest earned

Important Updates for 2025

As of Jan. 1, 2025, only electronic I bonds are available. Paper I bonds are no longer offered.
If there is a natural disaster, the one-year holding requirement may be waived.
The Payroll Savings Plan and paper I bond option through tax refunds have been terminated.

Example Penalty for Early Redemption

An I bond purchased between Nov. 1, 2024, and April 30, 2025, has a rate of 3.11%. That means a $1,000 bond earns around $15.55 in interest over six months.

If you redeem early, TreasuryDirect will deduct roughly half of that — around $7.78 — for the final three months.

Who Can Cash Savings Bonds?

If you’re an owner, co-owner, beneficiary, legal representative or parent of a minor child, you can cash in a savings bond as long as you follow the proper instructions.

Eligible Person	Conditions	Required Documents
Owner	Name appears on the bond or in Treasury Direct records	Government-issued photo ID
Co-owner	Either co-owner can redeem without the other	-Government-issued photo ID -Bond must show both names
Beneficiary	Named as Payable on Death	-Death certificate and will or court order -Original bond -Government-issued photo ID
Legal representative	Court-appointed guardian, executor or holder of power of attorney	-Legal proof like court letters or POA -Death certificate if applicable
Parent of minor owner	Acts on behalf of child, child is not old enough	FS Form 1522 signed by parent on behalf of the child’s name

How To Cash in Paper Savings Bonds

You can cash your paper savings bond either through the mail or in person at a bank or credit union. Here’s a look how to cash in savings bonds depending on your situation.

Option 1: By Mail

Step 1: Fill out form FS 1522, which you can find on TreasuryDirect’s website.
Step 2: Sign the bond in front of the certifying officer. This representative is usually available at the bank.
Step 3: Mail the original bond, Form 1522 and any supporting documentation to the following address:

Treasury Retail Securities Services

P.O. Box 214

Minneapolis, MN 55480-0214

Note: If you’re not the owner of the bond, make sure you send proof of authority to cash the bond. It can be a power of attorney, a death certificate plus a will or a court order.

When This Option Is Best

When a bank or credit union isn’t nearby
When you aren’t a customer at a local bank
When the bond amount exceeds a bank’s limit
When you aren’t the owner of the bond

Option 2: In Person at a Bank

Step 1: Bring your original bond to the bank.
Step 2: Provide a valid government-issued photo ID like a driver’s license or passport.
Step 3: If you’re cashing the bond on behalf of another person, you need to bring a power of attorney or a death certificate plus a will or court order.
Step 4: If you want the funds to be deposited directly into your bank account, then bring your account information.

Notable Restrictions

Current customers: Most banks will only cash bonds for current customers. Non-customers may be denied from cashing in a bond.
Monetary limits apply: Banks have a monetary limit on redemptions for bonds. The limit may be between $1,000 to $2,500.
Verify your identity: The bank may verify your identity and mail the bond to the Treasury if the bond is over their limit.

Have an Old Savings Bond?

If it’s been 30 years or more, your savings bond has stopped earning interest — and it’s time to cash it in. You can use the TreasuryDirect Savings Bond calculator to check its current value before redeeming.

Which Banks Still Cash Savings Bonds?

Major banks still cash savings bonds. Check out this table to see if your bank is listed.

Bank	Customer requirements	Daily Limits	Notes and Restrictions
Wells Fargo	Must be a bank customer for at least one year	No redemption limit if you’ve been a customer for more than a year	There is a $1,000 cap on the redemption limit if you have been a customer for less than one year
Chase	Customers need to have a money market, checking or saving account open for at least a year	-Bonds must have a face value of at least $200 -Redemption value of less than $500	Call the bank for bond limits exceeding the cap
Bank of America, Member FDIC	Must have an active checking or savings account	No limit stated on the website	Call the bank for specific information on cashing bonds
Citi®	Must have an active deposit account	No redemption limit if you’ve had an account for more than a year	Redemption cap for bonds if you’ve been a customer for less than a year

How To Cash in Electronic Savings Bonds

If you’re wondering how to cash in savings bonds the easy way, going the electronic route is one of the best options. To get started, sign in to your TreasuryDirect account and follow these steps:

Step 1: Choose the bond you want to redeem from the list of securities in your TreasuryDirect account.
Step 2: Enter the amount you want to redeem. You can redeem a partial amount of the savings bond as long as you take out at least $25 and leave at least $25 in the bond.
Step 3: Review the transaction and submit the redemption request.

How To Deposit Electronic Bonds Into Your Bank Account

TreasuryDirect will deposit the funds directly into your linked bank account.

Make sure your bank routing and account numbers are correct in your profile before submitting the transaction.

How Are Savings Bonds Taxed?

When you cash in a U.S. savings bond, you have to pay taxes on the interest you earned. There are typically no local or state taxes on the interest you earn.

You will be issued a 1099-INT, which you’ll need to include with your federal tax return.

Tax Timing Options

Taxed at redemption: Most people report bond interest when they cash the bond. Interest is added to your ordinary income.

Taxed annually: Although it isn’t common, you can report your interest every year. This will help spread out the tax burden. Once you make this election, you have to do it for all savings bonds unless you get permission from the IRS to change it.

What To Do With Your Bond Money Now

There are several ways to invest your bond money. Here are some of those ways:

High-Yield Savings

A high-yield savings account is great for emergency funds and easy access. The APYs on high-yield savings accounts can range from 3.80% to 4.50%. Check current rates as these can fluctuate.

Certificates of Deposit (CDs)

You can put your bond money in a short-term or long-term CD. The typical minimum deposit is between $500 to $1,000. CDs can earn up to 4.50% APY.

Keep in mind, if you try to withdraw your money early, you will face an early withdrawal penalty.

Treasury Bills

A treasury bill is a conservative investment that is backed by the U.S. government. It is a safe and predictable way of investing, and you aren’t required to pay state or local taxes on your treasury bill.

529 Plans

You can invest your bond money in a 529 plan. This is a tax-advantaged investment account for educational expenses. Money grows tax-free if used for qualified educational expenses.

Mistakes To Avoid When Cashing Savings Bonds

Cashing bonds can be a straightforward process, but you want to be aware of these common mistakes.

Cashing your bond too early. If you cash your bond before five years, you lose three months’ worth of interest. Check the issue date before cashing your bond.
Missing the maturity date. After 30 years, bonds stop earning interest. You should cash the bond before it becomes stale.
Forgetting to check the bond’s value. The printed amount on the bond isn’t necessarily what the bond is worth. Check the value of the bond on TreasuryDirect’s site. You can verify the current value and earned interest.
Not bringing or sending the correct documentation. Always bring proper ID and the original bond. If you’re not the owner, bring or send legal proof that you have the authority to act on behalf of the bond owner.
Assuming all banks will cash your bond. Banks don’t necessarily cash bonds. Also, banks don’t typically cash bonds for non-customers. Banks also have monetary limits on the bond cashing amounts.
Not filing the appropriate taxes. Bond interest is taxable at the federal level. You should receive Form 1099-INT.
Forgetting to mail the appropriate form. If you redeem your bond via mail, don’t forget to send in your FS Form 1522.

Final Thoughts

You have multiple ways to cash your savings bonds. You can cash them via mail, in person and electronically. No matter the method you choose, keep the following in mind:

Make sure you have proper documentation like a government ID, the original bond and legal documentation that you’re authorized to cash the bond.
Be aware of the holding period of your savings bond. If you redeem too early, you will lose three months of interest. If you redeem too late, you earn no further interest.
Make sure you include earned interest from your savings bond in your federal tax return.

Cashing Savings Bonds: FAQ

Have questions about how to cash in savings bonds? Here are some quick answers to help you through the process.

How do I cash in old savings bonds?
- You can cash most savings bonds at a bank or credit union. For paper and electronic bonds, you can also use TreasuryDirect's site.
How can I cash in a savings bond if I'm not the original owner?
- You must present legal documentation giving you the authority to act. For example, a power of attorney or death certificate plus a will or court order is appropriate documentation. Also, you may have to complete Form FS 1522 or Form FS 1455.
Can I deposit bonds directly into my bank account?
- Yes, once the bonds are cashed, you can directly deposit these funds into a checking or savings account.
Can you cash savings bonds at any bank?
- Most major banks and credit unions will cash savings bonds. Some may have limits to what can be cashed.
Do I pay taxes when I cash in savings bonds?
- Yes, interest earned on the bond is subject to federal income tax. Most people report the interest in the year the bond is cashed.
Is there a bad time to cash in savings bonds?
- If you cash your savings bond before five years, you will lose three months' worth of interest. Also, you won't get the maximum benefit if you cash right before the interest accrual month.

Cynthia Measom and Allison Hache contributed to the reporting for this article.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.