How to Cash in Savings Bonds

Savings bonds are a low risk way to invest your money. They pay interest until they reach maturity, which is usually in 20 or 30 years. Then, you can redeem them for cash.

The process is fairly simple, but there are some important considerations. Including tax and early redemption penalties.

Electronic bonds

If you have Series EE or Series I bonds, you can cash them in online through TreasuryDirect. You can also redeem paper savings bonds at banks, credit unions, or other financial institutions. However, there are a few considerations to keep in mind.

The first is the fact that you must have held the bond for at least a year to cash it in. If you redeem the bond before this time, you will forfeit three months of interest. In addition, you must pay federal income tax on the amount of money you get from the bond.

Other requirements vary by bank or other institution. For example, some require that you be a bank customer and that you bring a form of identification with you. If you are redeeming a bond on behalf of someone who has died, you will need to bring a certified death certificate. You will also be required to submit a Social Security number.

Paper bonds

Savings bonds are a great way to save money and earn interest in a safe, low-risk manner. They can also be a good way to fund a family vacation or pay for a college education. To cash in paper bonds, bring them to your bank and provide a photo ID. If you have multiple bonds, record the serial numbers to keep track of them. You can also use the Savings Bond Calculator to find out what your bonds are worth.

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The process of cashing savings bonds varies depending on the type and amount of the bond, and tax considerations will need to be addressed. You can redeem a savings bond at any time, but it is usually wise to wait until the bond reaches its full maturity date. This can avoid losing three months’ worth of interest when it is redeemed early.

You can redeem savings bonds at banks, credit unions or other financial institutions that offer TreasuryDirect accounts. You will need to provide a social security number, address, bank account and routing information and an email address. In some cases, you may need to provide a signed claim form in addition to the other required documentation.


Savings bonds are a great way to save for a child’s college education, or to set aside money for your own retirement. However, you should be aware that interest income from savings bonds may be taxed. This can be especially true if you receive your bonds as gifts.

The process for redeeming paper bonds versus electronic ones differs, and there are other considerations to take into account when you’re cashing in your bonds. For example, if you redeem your bonds at a financial institution, you will receive a 1099-INT form that you should file with your taxes that year. If you redeem your bonds online through TreasuryDirect, the IRS will send the form to you by January.

You’ll be responsible for paying the taxes owed on your bonds if you’re the sole owner of the bond or an authorized co-owner. This includes survivor beneficiaries, who inherit a bond after its original owner’s death. In addition, if you use the proceeds from your EE or I bonds to pay for qualified higher education expenses, you can exclude the earnings on them from your federal taxes.

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The process of cashing in savings bonds varies according to the type of bond. Electronic savings bonds, such as Series EE and I bonds, can be redeemed online through a TreasuryDirect account. Paper bonds, such as HH and some older bond series, can be redeemed by visiting your local bank or credit union.

It is usually best to wait for a bond to reach its maturity date before redeeming it for cash. However, if you have an emergency situation and must spend the money quickly, redeeming your bonds for cash may be necessary.

To cash in a paper saving bond, you will need to provide a form of identification. This can include a driver’s license or passport. You may also need to bring the bond itself, as well as a certificate of death for the bond owner. In addition, you will need to pay federal income taxes on the interest earned from the bond. The interest is reported on a tax form known as a 1099-INT.

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