How to Cash In Savings Bonds

How Do Savings Bonds Work?

Savings bonds are low-risk securities that allow individual investors to loan money to the U.S. government in exchange for earning interest. The U.S. Treasury currently issues two types of savings bonds, Series I and Series EE. Here's how the two types of savings bonds compare:

As of January 2025, all new savings bonds are issued electronically through the Treasury Department's TreasuryDirect site. You can purchase bonds starting at $25 each at any value you like (down to the penny).

You must hold onto savings bonds for at least a year, but after that you can cash in your investment or redeem a portion of it on the TreasuryDirect site. If it's been five years or less since you purchased the savings bond, you'll forfeit three months' worth of interest if you cash in your bond.

Savings bonds have maturity dates, after which they don't earn any more interest. Most savings bonds mature in 30 years, though older savings bonds may mature in 20.

Series HH and Other Paper Savings Bonds

Prior to January 2025, the government also issued paper savings bonds, including Series HH and some Series I and Series EE bonds. Like their electronic counterparts, paper savings bonds earn interest—and therefore increase in value—over time. However, buying and selling paper savings bonds, and tracking their value, is a bit more cumbersome. If you have paper savings bonds, read on for more information on finding their value and redeeming them for cash.

Learn more: How to Buy Bonds

Where Can I Cash in Savings Bonds?

You can redeem electronic savings bonds online at TreasuryDirect.gov. Paper savings bonds can be redeemed by mail through the Treasury Department or at some banks and credit unions. Here are three basic ways to convert your savings bonds to cash.

1. Redeem Online With a TreasuryDirect Account

You can redeem your electronic Series EE and Series I savings bonds on the TreasuryDirect website. Login to your TreasuryDirect account and go to "Current Holdings." From there, you can redeem all or a portion of your savings bond as long as it's been at least a year since you purchased it. You must redeem at least $25 and leave at least $25 in your account, unless you wish to cash in your bond in full. When you redeem a portion of a bond's value, you only receive interest on the portion you redeem.

2. Cash In Paper Bonds by Mail With TreasuryDirect

Redeem up to 30 paper savings bonds using FS Form 1522 from TreasuryDirect. To complete the form, you'll need the names, serial numbers and issue dates listed on each bond you want to cash. Be prepared to provide your Social Security number and direct deposit information to have payment sent directly to your account. You must cash in the entire value of a paper bond; you can't redeem part of it, as you can with an electronic savings bond.

If your bonds are worth $1,000 or less, mailing a copy of your government-issued identification with your completed form is sufficient. If your bonds are worth more than $1,000, each person listed on the bond must sign the form in the presence of a notary or authorized certifying officer before submitting it.

3. Take Paper Bonds to Your Bank or Credit Union

Some banks and credit unions will cash paper savings bonds, but it's a good idea to call ahead before you attempt it. Many financial institutions don't handle savings bonds; others require you to have an account, or will only cash certain types of savings bonds. In some cases, your bank may limit the number of savings bonds it will cash. When you call, you may also want to ask what forms of identification and other documents you'll need to redeem your bond.

TreasuryDirect recommends redeeming Series HH paper bonds through TreasuryDirect Form FS 1522, rather than trying your bank, credit union or other financial institution.

Tip: TreasuryDirect's Treasury Hunt feature lets you search for unredeemed bonds held in your name.

When Should You Cash In Savings Bonds?

After a year has passed, you can cash in a savings bond (or a portion of its value, if it's an electronic savings bond) at any time. Remember that if you redeem it after less than five years, you'll forfeit three months' worth of interest as a penalty.

Until your savings bond matures, you'll continue to collect interest on your money. However, once your savings bond reaches maturity at 20 or 30 years, it stops accruing interest and will no longer increase in value. At that point, you should cash it in and either purchase a new savings bond or move your money to savings or a new investment. Check TreasuryDirect if you're unsure when your savings bond reaches maturity.

How Much Is My Savings Bond Worth?

You can track your electronic savings bond's value by logging in to your TreasuryDirect account and checking your current holdings.

For paper savings bonds, use the TreasuryDirect Savings Bond Calculator to determine their current value. You'll need the series, denomination and issue date to do the calculation. You don't need the bond's serial number unless you want to save an inventory of bonds online to view later.

Are Savings Bonds Taxed?

The interest you earn on a savings bond is taxable by the federal government, though not by the state. You should report interest income on your federal tax return in the year you receive it. If you wait to receive interest as a lump sum when you cash in your savings bond, you'll report all of your interest on your current year's tax return. You can also choose to receive (and report) interest annually, in which case you'll pay taxes as you go.

If your total taxable interest for any year is $1,500 or more, complete Schedule B (Form 1040) and attach it to your tax return.

You may be able to exclude all or part of your interest income if you use the money to pay for qualifying education expenses for yourself, your spouse or your dependent child.

Alternatives to Savings Bonds

Once you've cashed in your savings bond, you may be ready to put your money into an interest-earning account. Three high-yield options to consider:

• Money market accounts: A money market account pays interest like a savings account but allows limited check-writing or debit transactions like a checking account. Money market accounts typically pay higher interest than regular savings accounts—sometimes much higher rates if you shop around—and make it easy to pay selected bills or cover emergency expenses without transferring money from savings to checking.
• Certificates of deposit: Certificates of deposit (CDs) pay a fixed interest rate over a predetermined period of time. High-interest CDs offer annual percentage yields (APYs) that are competitive with high-yield savings accounts, and guaranteed returns for the account's full term.
• High-yield savings accounts: True to their name, high-yield savings accounts (HYSAs) are like regular savings accounts but pay much higher interest rates. HYSAs are a great place to keep your money if you want both flexibility and a good return.

Learn more: Types of Savings Accounts

The Bottom Line

If you have a savings bond you received as a gift—or purchased during the advent of inflationary times a few years ago—you can redeem it online, by mail or at your local financial institution. Cashing in a savings bond isn't quite as simple as depositing a check, but this extra legwork is part of the charm. Savings bonds were once popular as gifts because they were easier to save than to spend—a sentiment that may be worth honoring, even as you decide to cash in your bond.