How To Redeem A U.S. Savings Bond

If you are in possession of U.S. savings bonds – thanks, Aunt Bonnie – it is important to know how to redeem a U.S. savings bond. It is easy to redeem a U.S. savings bond, often easier then cashing a check. To redeem a bond, a few simple steps must be followed.

1. Find your paper savings bond. Sounds simple, right? Maybe so, but if you have had that bond for many years it may have been misplaced. Finding your paper savings bond is the first step in how to redeem a U.S. savings bond. If you bought your bond electronically through the U.S. Treasury Department’s website, you can bypass this step.
2. Make sure you are eligible to redeem your bond. Bonds can be redeemed no earlier than one year from their initial issue date. Additionally, if you redeem your bond prior to its five year anniversary, you will be charge a 3 month interest penalty fee. Finally, you can only redeem bonds in your name or that you have inherited, as bonds are not transferrable.
3. Calculate how much your bond is worth. The best way to do this is with an online savings bond calculator. Simply input the bond’s denomination, issue date, and redemption date and the bond’s worth will appear. Make sure if the bond is less than five years old 3 months of interest have been deducted from its value.
4. Take the paper bond to the bank or credit union. Most banks or credit unions will cash U.S. savings bonds without much hassle. To have one cashed, you will need to establish your identity with either a photo ID or by having an active account at that institution open for at least 6 months.
5. Redeem electronic savings bonds online. If you bought your savings bond online through the U.S. Treasury Department’s Treasury direct website, you can redeem the bond online by logging into your account. The bond’s proceeds will be credited to any savings or checking account you choose; you will need to know your bank’s routing number and your account number for electronic redemption.
6. If redeeming more than $1000 of bonds, mail them to your Treasury Retail Securities Site. You are only allowed to redeem $1000 of savings bonds at any one time with photo identification alone. To redeem more, fill out the request for payment on the back of the bonds in front of a certifying officer at your bank. Then mail the bonds to your Treasury Retail Securities Site, the address of which can be found on the U.S. Treasury’s website.