Most banks will not cash a savings bond for you, even if you have an account there

Your bank can deposit money into your savings account, but it cannot redeem a savings bond. The U.S. Treasury issued the bond, and only the Treasury or an authorized financial institution can convert it to cash. This is a hard rule, not a policy that varies by bank size or your account balance.

The confusion happens because banks handle so many financial transactions that people assume they handle bonds too. They do not. If you walk into your bank with a savings bond, they will tell you to go elsewhere—and they may not know exactly where that elsewhere is.

Key Takeaways

  • Your bank cannot redeem a savings bond, even if you have been a customer for years or hold a large balance.
  • The U.S. Treasury's TreasuryDirect website lets you redeem Series I and Series EE bonds online if you own them in electronic form.
  • Paper bonds must go to a financial institution that participates in the Treasury's Savings Bond Program—not all banks do.
  • If your bond is lost, stolen, or destroyed, the Treasury can issue a replacement, but you need the serial number and issue date.
  • Cashing a bond before maturity may mean you lose the last three months of interest, depending on the bond type and how long you have held it.

How to redeem an electronic savings bond through TreasuryDirect

If you own your bond in electronic form through TreasuryDirect (the Treasury's online platform), you can redeem it directly on the website without leaving your house. Log in to your TreasuryDirect account, select the bond you want to cash, and request the redemption. The Treasury deposits the money into your bank account within two business days.

This is the fastest and most straightforward path if your bond is already electronic. You do not need to visit a bank or mail anything. The Treasury handles the entire transaction.

Where to take a paper savings bond

Paper bonds are harder to redeem because fewer institutions accept them. Your options are a bank or credit union that participates in the Treasury's Savings Bond Program, or the Federal Reserve Bank serving your region.

Not every bank participates. Call ahead before you go. Ask specifically: "Do you redeem paper savings bonds issued by the U.S. Treasury?" If the answer is no, ask for the name and phone number of a bank nearby that does, or ask for the contact information of your regional Federal Reserve Bank.

The Federal Reserve Banks accept paper bonds by mail. You can find your regional Federal Reserve Bank on the Federal Reserve's website, and each one has instructions for mailing bonds in. This takes longer—typically one to two weeks—but it works if no local bank will take them.

What you need to bring or send

For a paper bond, bring the bond itself and a government-issued photo ID. Some institutions also ask for your Social Security number and the account number where you want the money deposited. Call first to confirm what the specific bank or Federal Reserve Bank requires.

If you are mailing a bond to a Federal Reserve Bank, send the bond, a completed form (the Federal Reserve provides this), a copy of your ID, and a letter with your name, address, and the account number where you want the funds sent. Do not send the original bond by regular mail—use certified mail with return receipt so you have proof of delivery.

What happens if your bond is lost or damaged

If your paper bond is lost, stolen, or destroyed, the Treasury can issue a replacement. You will need the bond's serial number and issue date. If you do not have those, the Treasury can search its records using your name and Social Security number, though this takes longer.

Contact the Treasury's Savings Bond Division by phone or mail the form they provide. The replacement process typically takes four to six weeks. Until the replacement arrives, you cannot redeem the bond.

Early redemption and interest penalties

You can redeem a savings bond before it reaches final maturity, but the penalty depends on the bond type and how long you have held it. Series EE bonds and Series I bonds both forfeit the last three months of interest if you cash them before five years have passed. After five years, you can redeem without penalty.

If you have held the bond for more than five years, you lose nothing by redeeming early. If you have held it for less than five years, the Treasury withholds three months of interest. This is automatic—you cannot negotiate around it.

Converting a paper bond to electronic form

If you own a paper bond and want to avoid the hassle of finding a bank that accepts it, you can convert it to electronic form through TreasuryDirect. This lets you redeem it online instead. The conversion process takes a few weeks, so this is not a solution if you need cash when ready.

Log into TreasuryDirect, select "Convert to Electronic," and follow the prompts. You will need the bond's serial number and issue date. Once the conversion is complete, you can redeem the bond through the website.

Frequently Asked Questions

Can I cash a savings bond at a credit union instead of a bank?

Some credit unions participate in the Treasury's Savings Bond Program, but not all. Call your credit union and ask directly. If they do not redeem bonds, they may be able to refer you to a bank or Federal Reserve Bank that does.

What if I inherited a savings bond from someone else?

You can redeem an inherited bond, but the process depends on whether the bond is in your name or the deceased person's name. If it is in the deceased person's name, you will need to provide proof of inheritance (usually a will or court order) along with your ID. Contact the Treasury's Savings Bond Division for specific instructions based on your situation.

Do I have to redeem the entire bond, or can I cash part of it?

You must redeem the entire bond. You cannot split a bond or redeem a portion of it. If you need only part of the value, you still receive the full amount and keep the rest.

How long does it take to get the money after I redeem a bond?

If you redeem through TreasuryDirect online, the money reaches your bank account within two business days. If you redeem at a bank or credit union in person, you typically receive the funds when ready or within one business day. If you mail a bond to a Federal Reserve Bank, allow one to two weeks.

Can I redeem a savings bond if it has matured?

Yes. A matured bond stops earning interest, but you can still redeem it at any time. There is no important date for cashing a matured bond, though the longer you wait, the longer your money sits idle instead of earning interest elsewhere.