You can deposit a savings bond into your checking account, but only after it has matured and you have signed the back
A savings bond is a piece of paper issued by the U.S. Treasury that represents money the government owes you. You cannot deposit it the way you would a paycheck. The bond itself is not money yet — it is a promise to pay you money on a specific date. Once that date arrives (called the maturity date), you can cash it in, and then deposit the cash or a check into your checking account.
The process has two separate steps: first, you redeem the bond (turn it into actual money), and second, you deposit that money into your account. Most banks will not accept the physical bond as a deposit. You need to convert it first.
Key Takeaways
- A savings bond must reach its maturity date before you can cash it in; you cannot deposit the bond itself into a checking account.
- You redeem a bond by signing the back and presenting it to a bank, credit union, or the U.S. Treasury — the institution then gives you cash or a check.
- Once you have the cash or check from redeeming the bond, you can deposit it into your checking account like any other deposit.
- Series EE and Series I bonds (the most common types) have different maturity dates, so check your bond's issue date to know when you can cash it.
How to redeem a savings bond before depositing it
To turn your bond into money, you must first sign the back of it. Write your signature in the space marked for the owner's signature. This proves you are the person the bond belongs to.
Next, take the signed bond to a bank or credit union where you have an account. Most institutions will cash it for you on the spot. Some banks may ask to see a photo ID to confirm you are the person who signed it. If you do not have an account at a bank, you can also redeem bonds at the U.S. Treasury's website (treasuredirect.gov) or by mail through the Treasury Retail Securities Site.
The bank or Treasury will give you either cash or a check. If you receive a check, you can deposit it into your checking account when ready. If you receive cash, you can deposit that cash at your bank's teller window or through an ATM that accepts cash deposits.
When you can redeem your bond
The date you can cash in your bond depends on which type of bond you own and when you bought it. Series EE bonds (paper bonds) must be held for at least one year before you can redeem them. If you cash them in before five years have passed, you lose the last three months of interest. After five years, you can redeem them without penalty.
Series I bonds also require a one-year holding period, and cashing them in before five years means losing three months of interest. Both types continue earning interest for up to 30 years, so you do not have to redeem them as soon as you are allowed to.
Check the issue date printed on your bond. If you bought it in 2020, you can redeem it starting in 2021 (one year later). The bond will show you exactly when it was issued so you can calculate when you become may be able to access.
What happens after you deposit the money
Once the redeemed bond money is in your checking account, it works like any other deposit. You can write checks against it, use your debit card, or transfer it to another account. There are no special rules or restrictions on money that came from a savings bond.
Your bank will send you a receipt or confirmation when you deposit the funds. Keep any paperwork from the redemption process in case you need it for tax purposes — the interest you earned on the bond is taxable income, and you may need to report it.
Redeeming bonds online through TreasuryDirect
If your bonds are registered in TreasuryDirect (the Treasury's online system), you can redeem them without visiting a bank. Log into your TreasuryDirect account, select the bond you want to redeem, and request the redemption. The Treasury will deposit the money directly into your bank account within a few business days.
This method is faster than going to a bank in person, especially if you own multiple bonds or live far from a branch. You will need your TreasuryDirect login information and the bank account details where you want the money sent.
What to do if your bond has not matured yet
If your bond has not reached its maturity date or the one-year holding period, you cannot redeem it. You will have to wait. Some people hold bonds for decades because they continue earning interest, and there is no penalty for waiting.
If you need the money before the bond matures, you have limited options. You cannot sell a savings bond to someone else — they are non-transferable. Your only choice is to wait until you are may be able to access to redeem it, or to explore other sources of funds.
Frequently Asked Questions
What if I lost my savings bond?
Contact the U.S. Treasury's Bureau of the Fiscal Service with the bond's serial number and issue date. They can issue a replacement, though the process takes several weeks. If you do not have the serial number, provide as much information as you can about when and where you bought it.
Do I have to deposit the bond money into a checking account, or can I use savings?
You can deposit redeemed bond money into any account type — checking, savings, or money market. The redemption process is the same regardless of where the money goes after you receive it.
Will depositing a savings bond affect my taxes?
The interest you earned on the bond is taxable income in the year you redeem it. You do not owe taxes on the original amount you paid for the bond, only on the interest it earned. Keep your redemption paperwork for your tax records.
Can I deposit a savings bond that belongs to someone else?
No. Only the person whose name is on the bond can redeem it. If the bond is in a child's name, a parent or guardian must sign it and present it with proof of guardianship.
How long does it take to redeem a bond at a bank?
If you have an account at the bank, redemption usually takes a few minutes. The teller will verify your identity, sign the bond, and give you cash or a check on the spot. Online redemption through TreasuryDirect takes a few business days for the money to reach your account.