To cash a savings bond, log into TreasuryDirect (for electronic bonds) or take the paper bond to your bank with a photo ID (for paper bonds). Funds arrive in 1–2 business days for electronic redemptions. The key rule: bonds must be at least 12 months old to redeem, and cashing before 5 years costs you the last 3 months of interest. This guide covers Series EE, I, and old Series E bonds — including how to find out what your bond is worth today.
Savings Bond Types at a Glance (2026)
| Bond Type | Currently Sold | Earnings | Min Hold | Early Penalty | Max Maturity |
|---|---|---|---|---|---|
| Series I | Yes | Fixed rate + inflation adjustment (CPI-based) | 12 months | 3 months interest (if before 5 yrs) | 30 years |
| Series EE | Yes | Fixed rate (guaranteed to double in 20 years) | 12 months | 3 months interest (if before 5 yrs) | 30 years |
| Series E | No (stopped 1980) | Stopped earning at 30-40 years from issue | — | N/A — check if still earning | 30-40 years |
| Series HH | No (stopped 2004) | Paid semi-annual interest by check | — | N/A | 20 years |
Old Series E bonds issued before 1965 matured after 40 years; those issued 1965-1980 matured after 30 years. Most E bonds have stopped earning interest entirely — check TreasuryDirect to confirm.
How to Cash a Savings Bond: Electronic (TreasuryDirect)
If you purchased savings bonds at TreasuryDirect.gov after 2012, they are electronic and can only be redeemed through TreasuryDirect.
Step 1: Log in at TreasuryDirect.gov
Step 2: Click on “ManageDirect” then “Manage My Securities”
Step 3: Select the bond(s) you want to redeem
Step 4: Click “Redeem” and enter the amount (partial redemptions are allowed in multiples of $25)
Step 5: Confirm and submit — funds deposit to your linked bank account within 1–2 business days
No fee, no paperwork, no bank visit required. The TreasuryDirect account also shows the current value of each bond before you decide to redeem.
How to Cash a Paper Savings Bond: At a Bank
Most paper bonds can be cashed at banks and credit unions. Bring:
- The original paper bond (do not bend, fold, or write on it other than endorsing the back)
- Government-issued photo ID (driver’s license or passport)
- Your Social Security number
Bank limits: Banks are not required to redeem savings bonds and may cap transactions at $1,000. Some require you to be an established customer. Call ahead to confirm your branch can process the redemption.
If your bank won’t redeem the bond:
- Try a different bank — many community banks and credit unions are more accommodating
- Mail the bond directly to the US Treasury (instructions at TreasuryDirect.gov)
- Contact your Federal Reserve Bank for large amounts
How to Find Out What Your Bond Is Worth
Use the TreasuryDirect Savings Bond Calculator at treasurydirect.gov/BC/SBCPrice:
- Select the bond series (EE, I, E, etc.)
- Enter the denomination (face value printed on the bond)
- Enter the bond’s serial number (optional but helpful)
- Enter the issue date (month and year printed on the bond)
- Select the valuation date (today’s date to see current value)
What you’ll see:
- Current redemption value
- Interest earned to date
- Final maturity date (when the bond stops earning)
Early Redemption Penalty: The 3-Month Rule
If you redeem a Series EE or I bond before it is 5 years old, you forfeit the last 3 months of interest.
Example: A Series I bond issued June 2024, redeemed in September 2026 (27 months old). You earned 27 months of interest but receive only 24 months — the June, July, and August 2026 interest is forfeited.
After 5 full years (60 months), there is no early redemption penalty. The bond continues earning until 30 years.
Tax Rules for Savings Bond Interest
| Tax | Treatment |
|---|---|
| Federal income tax | Owed in year of redemption (or annually if you choose accrual method) |
| State and local tax | Exempt — savings bond interest is not taxed at state or local level |
| Form 1099-INT | Issued by TreasuryDirect or the bank that cashed the bond |
| Education exclusion | Interest may be excluded from federal tax if used for qualified higher education expenses (income limits apply — phase-out begins at $96,800 for single filers, $145,200 for married filing jointly in 2026) |
Reporting method choice: By default, you defer reporting interest until redemption (cash method). You can elect to report interest annually as it accrues. The accrual method can be beneficial if the child is in a low or zero tax bracket now.
Series I Bond Rates (2026)
Series I bonds earn a composite rate = fixed rate + semiannual inflation rate (based on CPI-U). The Treasury announces new rates each May 1 and November 1.
| Period | Composite Rate |
|---|---|
| May 2026 – Oct 2026 | Announced May 1, 2026 (check TreasuryDirect) |
| Nov 2025 – Apr 2026 | 3.11% |
| May 2025 – Oct 2025 | 3.98% |
| Nov 2024 – Apr 2025 | 3.11% |
Your specific bond’s rate depends on its issue date. Each bond’s rate adjusts every 6 months from its individual issue anniversary.
Purchase limits: $10,000 per person per calendar year in electronic I bonds through TreasuryDirect; an additional $5,000 per year in paper I bonds via IRS tax refund.
Inherited Savings Bonds
If you inherited savings bonds, you can redeem them as the new owner. For paper bonds, you may need:
- Death certificate of the original owner
- Proof of your identity
- The physical bond(s)
For bonds that cannot be redeemed at a bank due to estate issues, contact TreasuryDirect directly for guidance on estate procedures.
For current high-yield savings alternatives to savings bonds, see the best high-yield savings accounts and the HYSA vs Treasury bills comparison.
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