Savings bonds can be a great way to diversify your finances and protect your money from market risk, or you might have received one as a gift. However, the redemption process is different from just withdrawing money from a bank account, and it’s important to know how to do it. The steps for cashing in a savings bond vary depending on the type you have.
[Read: Best Savings Accounts.]
How Does a Savings Bond Work?
Savings bonds are securities issued by the government to fund its borrowing needs, such as federal expenditures or operations costs.
“When you buy a savings bond from the government, you’re essentially giving them a loan that they promise to pay back, with compound interest, by a given date,” says Steve Sexton, founder and president of Sexton Advisory Group, a San Diego-based financial advisory firm. “Because savings bonds are backed by the government, they’re considered as relatively low-risk compared to stock market investments.”
James Philpot, an associate professor and founder of the financial planning program at Missouri State University, adds that savings bonds have much lower initial investment requirements than many other investments — you can buy one for as little as $25 and collect interest for up to 30 years.
To buy a savings bond, investors must open an account at TreasuryDirect.gov. “For someone who is accustomed to online banking, (this site) will look and feel very much like an online bank account,” Philpot says.
You can no longer purchase paper savings bonds. Financial institutions stopped issuing paper bonds in 2012, but taxpayers could still use their refunds to buy paper savings bonds up until January 2025, when that option was eliminated. Now all savings bonds must be purchased online.
[Read: Best Checking Accounts.]
How Much Is My Savings Bond Worth?
To view the current value of an electronic savings bond, simply log into your TreasuryDirect account. You’ll see a summary of the securities you own, and you can click through on the particular bond you want to look up to see its current value.
To figure out how much a paper savings bond is worth, you can use the savings bond calculator provided by the Treasury Department. The calculator will ask you for the bond serial number and issue date, so you’ll need to have that information handy.
Types of Savings Bonds and How to Cash Them In
Many types of savings bonds have existed throughout the decades. Today, there are two main types that are still active and generating interest. A third type of savings bond stopped earning interest in 2024, but you may still have some that you have yet to cash. If you own one or more of these bonds and want to cash them in, read on for instructions.
Series EE Savings Bonds
Paper Series EE savings bonds were issued between 1980 and 2012. There were also some paper EE bonds sold between 2001 and 2011 that say “Patriot Bond” on them, which were a special edition to fund anti-terrorism efforts. These special Series EE bonds work the same as all other Series EE bonds.
Today, EE bonds can only be purchased electronically. The Treasury guarantees that any Series EE bond you buy now will double in value in 20 years. That said, you can cash in an EE bond any time after owning it for at least one year. You will forfeit three months of interest if you cash in the bond within fewer than five years.
If you want to cash in an electronic Series EE bond, you don’t have to redeem the full value — any amount of $25 or more is allowed. If you do cash a portion of the bond, you must leave at least $25 in your account. You will also only receive interest on the part you cash.
To cash in an electronic Series EE bond, log in to your TreasuryDirect account, then navigate to ManageDirect. You can then follow the link for cashing securities.
If you want to cash in a paper bond, you have to redeem it for the full value. This can be done at a bank that cashes bonds, or through the Treasury Department. If you opt for the latter, you’ll need to fill out an FS Form 1522. If the value you’re cashing is more than $1,000, you’ll also need to have your signature certified. Then send the bond and the form to the address listed on it.
Series I Savings Bonds
Series I savings bonds are designed to protect your money from inflation. These bonds earn both a fixed interest rate and a rate that changes based on inflation. Twice a year, the Treasury sets the inflation rate for the next six months. These bonds can only be purchased electronically.
Like with Series EE bonds, you can cash in Series I bonds after 12 months. If you cash it within five years, you lose the last three months of interest.
The instructions for cashing in an I bond are the same as for EE bonds. You can redeem any amount of $25 or more by logging in to your TreasuryDirect account. To cash a paper bond, you’ll need to redeem it for the full value by sending in an FS Form 1522 along with your paper bond.
Series HH Savings Bonds
The Treasury sold Series HH savings bonds from 1980 through August 2004. These bonds earned interest for up to 20 years, which means the last HH bonds reached maturity in 2024. Even though you can’t buy an HH savings bond anymore, you could own one that you haven’t redeemed yet.
HH bonds only exist in paper form and come in four denominations: $500, $1,000, $5,000 or $10,000. To cash one in, you’ll need to follow the same steps for cashing in a paper EE or I bond. That means filling out an FS Form 1522 and getting your signature certified, if necessary. You can only redeem these bonds via direct deposit, so you’ll need a bank account where the Treasury Department can send the money.
[Read: Best CD Rates.]
Where Can I Cash In a Savings Bonds?
Many banks will allow you to redeem your paper Series E, Series EE or Series I savings bonds at a branch, but they typically only offer the service to customers with open accounts. Series HH paper bonds and electronic savings bonds can’t be redeemed at financial institutions.
Policies on cashing in savings bonds can vary significantly from bank to bank, and you may find that your institution provides little information about it online. In many cases, you’ll need to hold an existing account with the bank. Some banks will only cash savings bonds for longtime customers, while others may limit the amount that customers can redeem.
For example, U.S. Bank states on its website that it will only cash savings bonds for customers who’ve held accounts with the bank for at least five years. Wells Fargo and Citi will cash savings bonds for customers with an active deposit account, but both institutions place caps on the amount that newer customers can redeem, according to spokespersons for each bank.
When you visit your local branch to cash in your savings bonds, you’ll need to bring the paper bonds and one or two forms of identification. Some banks will only cash a savings bond if the listed owner of the bond is present. If you’re not the listed owner, you’ll need additional documentation that indicate you’re legally entitled to the bonds. You may want to call your local branch ahead of time to check its specific requirements.
The table below shows how some of the largest U.S. banks handle requests to cash in U.S. savings bonds, according to bank representatives and information listed on their websites.
| Bank | Can You Cash In Savings Bonds? |
| Wells Fargo | Yes. Customers must have an active checking, savings or CD account. There is a cap of $1,000 per day if the customer’s account has been open for less than 12 months. Otherwise, there is no redemption limit. |
| Bank of America | Yes. Customers must have an active checking or savings account. |
| Citi | Yes. Customers must have an active deposit account. There is a limit on the amount the customer can redeem if the account has been open for less than six months. Otherwise, there is no redemption limit. |
| U.S. Bank | Yes. Customers can redeem savings bonds at U.S. Bank branches if they’ve held a checking, savings or money market account with the bank for at least five years. |
| Capital One | No |
| PNC Bank | Yes. Customers must have a consumer checking or savings account that has been open for at least 12 months. There are no caps on redemption amounts. The service may not be available at some specialty branches, such as in-store locations or solution centers that don’t have a teller onsite. |
[Read: Best CD Rates.]
Tax Implications for Redeeming U.S. Savings Bonds
U.S. savings bonds offer a few tax advantages, Philpot says.
For Series EE and I savings bonds, interest accrues and credits to your bond monthly. However, you don’t actually receive the interest until you redeem your bond, meaning you don’t pay income tax on the interest until you cash out. This is called tax deferral, and it increases the compound interest returns. Alternatively, you can choose to report the interest earned on a yearly basis and pay income taxes as you go (this option is required for Series HH bonds).
Philpot notes that when you cash your bond and collect your interest, that interest is not subject to state income tax.
A potential strategy to reduce the tax owed even further, Philpot says, is to cash out a bond and use the principal and interest to pay for qualified educational expenses for a dependent. Then the interest is not subject to federal income tax.
Is Now a Good Time to Cash in a Savings Bond?
The longer you hold your savings bond, the more interest it will earn, up to its maturity date. At the very least, you should hold a savings bond for five years so you aren’t penalized for cashing it in early. However, to maximize a bond’s fullest earning potential, it’s best to wait on cashing it in until it has reached maturity.
Casey Bond contributed to the reporting of this article.
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How to Cash in Savings Bonds originally appeared on usnews.com
Update 05/09/25: This story was previously published at an earlier date and has been updated with new information.
