How to Cash In Savings Bonds: Electronic and Paper

To cash in U.S. savings bonds, redeem electronic bonds through your TreasuryDirect account. For paper bonds, take them to a paying financial institution if it will process them. Most bonds also require a minimum holding period before you can cash them. And if you redeem a bond before five years, you lose the last three months of interest.

How do you redeem electronic versus paper savings bonds?

Electronic bonds are redeemed online through your TreasuryDirect account, with proceeds sent to the bank account you have linked. Paper bonds are redeemed in person or by mail, but only at an institution that agrees to cash them. Banks vary widely in how much they will cash at one time, and some do not cash savings bonds at all, so it is worth checking a local broker list or calling ahead before you go.

At a paying institution, you will generally need a government-issued photo ID, and your signature must match the one on the bond. If the value of the bonds you are cashing is more than $1,000, your signature must also be certified. Treasury points to FS Form 1522 for the certification requirements.

You can only cash a bond that you own or co-own, unless you have documentation Treasury accepts as proof you are entitled to it. Bonds bought from someone else, including through an online auction, cannot be cashed at all.

TreasuryDirect itself places no limit on the value or number of paper bonds it will cash at one time, as long as the bonds meet the requirements for redemption. So if a bank cannot handle a large redemption, sending the bonds directly to Treasury is an option worth knowing about.

Step	Electronic bonds	Paper bonds
Where to start	Log in to TreasuryDirect	Visit a paying bank or credit union
Identification	Account access and bank verification	Government photo ID and signature matching
Payment	Direct deposit to linked account	Cash, deposit, or cashier’s check, depending on the institution
Timing	Usually handled online once submitted	May be immediate at the counter or slower if mailed

What holding period and interest penalty apply?

Most savings bonds cannot be redeemed immediately after issue. For Series EE and I bonds, the minimum holding period is one year from the issue date. Try to redeem before that, and TreasuryDirect or the paying institution will turn the request down. Even after the one-year mark, cashing a bond before five years costs you the three most recent months of interest — that is the early-redemption penalty.

That penalty is built into the bond's redemption value, so you never pay it as a separate fee. For example, if you cash in a bond after eighteen months, you are paid for the first fifteen months only, and the last three are forfeited. If you are unsure whether to wait, check the bond's issue date and current value in TreasuryDirect, or on the paper bond itself.

Can you redeem only part of a bond?

Partial redemption works differently depending on the bond's form. A paper savings bond cannot be partially cashed — it must be redeemed for its entire value in one transaction. Electronic bonds in TreasuryDirect are different: you can redeem part of the value and leave the rest in your account.

This is useful when you need some cash but do not want to close out the bond entirely. TreasuryDirect requires you to leave at least $25 in the account after a partial redemption. And you only earn interest on the part you actually cash — the remainder keeps earning as if nothing happened.

What happens when a bond reaches final maturity?

At final maturity, a savings bond stops earning interest entirely. Waiting any longer will not increase its value, because it is no longer compounding. For electronic bonds, Treasury pays you automatically once the bond reaches maturity, if you have not already cashed it in yourself. At that point, most paper-bond owners are better off redeeming than leaving the bond idle.

If an old bond is still sitting in a drawer or in an account, check whether it has already matured. The Treasury's site and the bond itself are the right places to verify this. Some paper EE bonds sold between 2001 and 2011 are printed with the words "Patriot Bond," a special edition issued to help fund anti-terrorism efforts; they work exactly like any other EE bond, so the same maturity and redemption rules apply.

Series EE bonds earn interest for thirty years. Treasury guarantees that an EE bond bought today will double in value after twenty years, adding money at that point if needed to make the guarantee true.

Since May 2005, new EE bonds earn a fixed interest rate that is set when you buy the bond, and that rate applies for the first twenty years. Treasury may adjust the rate, or the way the bond earns interest, after that twenty-year point.

Series I bonds also earn interest for up to thirty years, compounding twice a year. Every six months, that period's interest is added to the bond's principal. The next six months of interest is then calculated on the new, larger total.

The interest rate on an I bond changes every six months, based on inflation, so it can go up or it can go down. It combines a fixed rate that never changes with an inflation rate that resets twice a year. For more on how rates and compounding work in general, see our explainer on interest rates. Either way, thirty years is the outer limit for a savings bond — after that, it is done earning.

How are savings bonds taxed and what is the education exclusion in principle?

Interest from savings bonds is taxable for federal income tax purposes. Normally that happens when you redeem the bond, not as interest accrues each year. Owners can instead elect to report each year's earnings as they go, rather than waiting until the bond is cashed. State and local tax treatment can differ, so many bond owners check with a tax preparer or the IRS guidance for savings bonds before filing.

You will need a Form 1099-INT to report that interest. If a bank cashes your paper bond, the bank is responsible for getting you a 1099-INT — some hand it over right away, others wait until the following January. If TreasuryDirect cashes a paper bond for you, it mails the 1099-INT the following January as well. And if you hold electronic bonds, the 1099-INT becomes available in your TreasuryDirect account each January, for bonds cashed the year before.

Some owners can also exclude interest from tax under an education provision, if bond proceeds go toward qualified higher-education expenses. The eligibility rules include who owned the bond, how the money is used, and income limits, and they can change from year to year. Check current IRS guidance or a tax professional before relying on it. For terminology around tax forms and ownership types, see the glossary.

What if the bonds are inherited, lost, or damaged?

Inherited bonds are redeemed differently depending on whether the deceased owner named a co-owner, a beneficiary, or no one at all. The survivor or estate usually needs proof of death and legal authority to redeem the bond. TreasuryDirect or the paying institution may also ask for documents that establish who is entitled to the proceeds.

If a bond is lost, stolen, or destroyed, replacement is often possible. The process depends on how it was registered, and whether it was electronic or paper. Keep any bond records, account statements, and serial numbers you still have, since those details speed up a claim.

Treasury used to run a free lookup tool called Treasury Hunt, to help owners find unredeemed bonds. As of September 30, 2025, that tool is no longer available. If you suspect you have an unredeemed lost, stolen, or destroyed bond today, Treasury directs you to its forms page for guidance on submitting a claim.

What is the safest way to prepare before you cash in bonds?

Start by identifying the bond type, owner name, issue date, and whether it is electronic or paper. Then confirm whether the bond is eligible for redemption, whether a penalty would apply, and whether a bank will cash the paper bond before you make the trip.

• Bond type and form: Series EE or I, electronic or paper.
• Owner name and issue date, so you can check the one-year minimum holding period.
• Whether the bond has passed its five-year mark, to see if the interest penalty still applies.
• For paper bonds: a government-issued photo ID, and a signature that matches the bond.
• Whether your bank is a paying agent for savings bonds, and any limit it places on the amount it will cash.
• Whether you will need a Form 1099-INT for your tax return the following January.

For deeper background on redemption mechanics, ownership rules, and related terms, Treasury and your financial institution are the primary sources. If you are still deciding between bond types, our guide explains how I bonds and EE bonds differ. Another guide covers how to buy Treasury securities through TreasuryDirect. Our market coverage and economy coverage can also help place the decision in context.