Savings Bond Calculator
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How to Cash In Savings Bonds — Step-by-Step Guide

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Redeeming a US savings bond is straightforward, but there are a few rules to know before you cash in. This guide covers how to redeem both electronic and paper bonds, the early redemption penalty, tax treatment, and how to verify the exact value first.

Step 1 — Verify the Exact Value First

Before cashing any bond, confirm its current redemption value using the official TreasuryDirect Savings Bond Calculator. You'll need:

  • Bond series (EE or I)
  • Denomination (face value printed on the bond)
  • Issue date (month and year)

The savings bond calculator on this site can also provide an estimate, but TreasuryDirect gives the precise cent-accurate value.

Step 2 — Check the Hold Period Rules

  • Under 12 months: Cannot be redeemed. You must wait until the bond is at least 12 months old.
  • 12 months to 5 years: Can be redeemed, but you forfeit the last 3 months of interest. This is called the early redemption penalty.
  • 5 years or older: Can be redeemed with no penalty. You receive the full accumulated value.
  • 30 years or older: Bond has reached final maturity and is no longer earning interest. Redeem immediately to capture the full value — waiting longer does not increase the payout.

Step 3 — Redeem Based on Bond Type

Electronic Bonds (TreasuryDirect account)

  1. Log in to your account at TreasuryDirect.gov.
  2. Go to ManageDirect → Redeem Securities.
  3. Select the bond(s) you want to redeem.
  4. Enter a US bank account for direct deposit (ABA routing number and account number).
  5. The funds typically arrive within 1 business day after approval.

You can redeem all or part of an electronic bond (minimum partial redemption: $25).

Paper Bonds

Paper bonds can be redeemed at many US banks and credit unions. The process varies:

  1. Check your bank's policy first. Not all branches accept savings bonds, and some require you to be an account holder. Call ahead.
  2. Bring the bond and valid photo ID. The bank may require you to sign the back of the bond in their presence.
  3. Funds are typically available immediately or within 1 business day.

If your bank will not cash the bond, you can mail it to the Federal Reserve Bank of Minneapolis (the current TreasuryDirect redemption agent for paper bonds). Instructions and the mailing address are at TreasuryDirect.gov — Redeem Paper Bonds.

Converting Paper Bonds to Electronic

If you'd prefer not to visit a bank, you can convert paper savings bonds to electronic form via TreasuryDirect's SmartExchange program, then redeem online. See TreasuryDirect SmartExchange.

Tax Treatment on Redemption

  • Federal income tax: The interest earned is taxable in the year you redeem the bond (unless you elected to report interest annually each year). You will receive a Form 1099-INT from TreasuryDirect or the bank.
  • State and local tax: Savings bond interest is exempt from all state and local income taxes.
  • Education Tax Exclusion: Interest may be excludable from federal income tax if the proceeds are used for qualified higher education expenses in the same tax year. Income limits and other rules apply. See IRS Publication 550 or consult a tax professional.

What if the Bond Is Lost, Stolen, or Destroyed?

Paper bonds can be replaced if lost or destroyed. File a claim with TreasuryDirect using Form PD F 1048. Electronic bonds in a TreasuryDirect account are not at risk of being lost. More information: TreasuryDirect — Claiming Lost/Stolen Bonds.

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Frequently Asked Questions

Can I cash a savings bond before 1 year?

No. You must hold a savings bond for at least 12 months before you can redeem it. There are no exceptions to this rule. After 12 months you may redeem at any time.

What happens if I cash a bond before 5 years?

You will forfeit the last 3 months of interest. For example, redeeming a bond after exactly 2 years means you receive only 21 months of interest rather than 24. This penalty applies to both Series EE and Series I bonds. After 5 years, no penalty applies.

Can I cash a savings bond at a bank?

Paper savings bonds can typically be redeemed at most US commercial banks or credit unions that participate in the savings bond program — though policies vary by institution. Electronic bonds held in TreasuryDirect can only be redeemed through TreasuryDirect.gov. If your bank no longer redeems bonds, the Federal Reserve Bank of Minneapolis maintains a list of redemption agents.

How do I get the exact value before cashing my bond?

Use the official TreasuryDirect Savings Bond Calculator at treasurydirect.gov/savings-bonds/savings-bond-calculator. Enter your bond series, denomination, and issue date to get the precise current redemption value. For paper bonds, you can also call TreasuryDirect at 844-284-2676.

Are savings bond proceeds taxable?

Yes. The interest earned on savings bonds is subject to federal income tax, reported in the year you redeem the bond (unless you elected to report it annually). Savings bond interest is exempt from state and local income taxes. Depending on how the proceeds are used, the Education Tax Exclusion may eliminate federal tax on bonds used for qualified higher education expenses — consult a tax professional for your situation.