How To Cash in a United States Savings Bond

Get Tips for Cashing in Savings Bonds

The U.S. savings bond is a popular investment vehicle in the U.S. because interest paid on these bonds is exempt from local and state taxes.  They are also popular because they are very easy to purchase. Just go to the local commercial bank near you. You can also purchase U.S. saving bonds online. Another option, one that is preferred by employees, is to purchase them through automatic payroll deductions.

You may think that savings bond redemption is difficult, but it's actually not. Cashing in bonds is as easy as purchasing them. You just have to know where to cash them. All you have to do is go to the bank and redeem them. Below is a detailed discussion of how you can redeem your U.S. savings bonds.

  1. Go to your local bank.  Bonds can only be redeemed at commercial banks, or a branch of the Federal Reserve Bank. It does not matter if you have an account with the bank or not. Make sure to go the bank early in case the bank still has to send the bonds to the Federal Reserve, which may take some time.
  2. Redeem your U.S. savings bonds. Show any proof of identification and tell the bank representative that you want to cash them in. If you have an account with the bank, the bank representative will instantly look up your information and provide you with the cash.

In the event that you do not have an account with the bank, you will be asked by the bank representative to provide additional identification before cashing them in. You can use your social security number, at least two identification cards, or the bonds themselves. The downside to cashing them in at a bank where you have no account is that you are limited to redeeming only $1000 worth of bonds. You would have to return the next day to cash in more.

Sometimes, your deceased parents, relatives, or spouse leaves you as the beneficiary of their bonds. To cash them in, the bank representative will ask you to provide the death certificate of the deceased owner or power-of-attorney letter along with your proof of identification. At that point, the redemption can take place.

In some cases, children receive U.S. savings bonds as a gift from family, relatives and godparents. If you are the parent and you want to cash them in, the bank will ask you to provide identification as well as proof that you are the parent or legal guardian of the child. The bank representative will also ask you to write a note on the back of the bond stating that you are the parent or legal guardian of the child and that the child lives with you. Your note should also state that the child is not old enough to understand the request to cash in a savings bond. 

As a side note, U.S. savings bonds can also be redeemed by mail. Contact the Federal Reserve and request to cash them in. The check will be sent to you by mail.


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