To cash in savings bonds, the process depends on whether you have electronic or paper bonds: Electronic Savings Bonds:
- If you purchased electronic bonds through TreasuryDirect, log into your TreasuryDirect account.
- Navigate to "ManageDirect" and select "Redeem securities."
- Follow the prompts to cash in the bonds.
- The redeemed amount will be directly deposited into your linked checking or savings account, usually within two business days
Paper Savings Bonds:
- You can often cash paper savings bonds at your bank or credit union, but not all banks offer this service, so it’s advisable to call ahead.
- You must bring the physical bond and valid identification. If the bond value exceeds $1,000, your signature may need to be certified.
- If your bank cannot cash the bonds, you can mail them to Treasury Retail Securities Services with a completed FS Form 1522 and your signature certified if required.
- The Treasury will then process the redemption and send payment to your bank account
Additional Important Details:
- Savings bonds must be held for at least one year before they can be cashed.
- Cashing bonds before five years results in forfeiting the last three months of interest.
- You cannot cash part of a paper savings bond; it must be redeemed for its full value.
- Electronic bonds can be partially redeemed, but a minimum balance of $25 must remain in your TreasuryDirect account.
- Waiting until maturity (usually 20 years for Series EE bonds) maximizes interest earnings
Summary:
- For electronic bonds, redeem online via TreasuryDirect.
- For paper bonds, try your bank first or mail them with the proper form to Treasury Retail Securities Services.
- Always verify identification requirements and holding periods to avoid loss of interest or delays.
This approach ensures a smooth and timely cashing process for your savings bonds.
