Ask a Nerd: How Do I Cash a Savings Bond?

Learn how and where to cash a savings bond, and check the value first to determine when it’s worth it.

Sara Clarke
Assistant Assigning Editor | Banking

Sara Clarke is a former Banking editor at NerdWallet. She has been an editor and project manager in newsrooms for two decades, most recently at U.S. News & World Report. She managed projects such as the U.S. News education rankings and the Best States rankings. Sara has appeared on SiriusXM Business Radio and iHeartMedia’s WHO Newsradio and has been quoted in The Salt Lake Tribune, The St. Paul (Minnesota) Pioneer Press and other outlets. She is based near Washington, D.C.

Yuliya Goldshteyn
Assigning Editor | Banking

Yuliya Goldshteyn is a former banking editor at NerdWallet. She previously worked as an editor, a writer and a research analyst in industries ranging from health care to market research. She earned a bachelor's degree in history from the University of California, Berkeley and a master's degree in social sciences from the University of Chicago, with a focus on Soviet cultural history. She is based in Portland, Oregon.

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

My husband and I received tiny shoes, outfits and baby books for our kids when they were born in the 2000s. My parents received similar items for me upon my birth in the 1970s, but something else, too: savings bonds .

Now, the staid savings bond is back in fashion, or at least has seen a boom in recent years as an inflation-beating investment, particularly because of Series I bonds , introduced in 1998 (the savings bond itself was created in 1935).

For those of us who purchased or received any type of savings bonds as a gift in the not-so-recent past, it may be time to give them another look. Eight of mine were 30-plus years old and had stopped accruing interest, so I opted to cash them. When it’s time to cash a savings bond, here’s what you need to know.

SoFi Checking and Savings

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

EverBank Performance℠ Savings

Barclays Tiered Savings Account

These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.

These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.

on Wealthfront's website

Wealthfront Cash Account

on Betterment's website

Betterment Cash Reserve – Paid non-client promotion

*Current promotional rate; annual percentage yield (variable) is 5.50% as of 4/2/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .75% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities.

CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.

CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.

Marcus by Goldman Sachs High-Yield CD

4.70% APY (annual percentage yield) as of 08/30/2024

Federally insured by NCUA

Alliant Credit Union Certificate

Annual Percentage Yield (APY) is accurate as of 08/20/2024

Discover® Cashback Debit

Chase Total Checking®

Deposits are FDIC Insured

Chime Checking Account

Discover® Money Market Account

Where do I cash in a savings bond?

You can cash paper bonds at a bank or through the U.S. Department of the Treasury’s TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks . Some, such as PNC Bank and TD Bank, stipulate that you need to be an account holder for a year before cashing a savings bond. Of the two banks and two credit unions where I have accounts, only one cashes savings bonds, so call ahead.

Another reason to contact your financial institution before heading to a branch is that some banks may not cash all types of bonds. Regions Bank, for example, doesn’t let you cash bonds in the name of a guardian, trustee or other representative of an estate; you also can’t cash bonds if you’re acting as a power of attorney. You likely can’t cash damaged or altered bonds anywhere.

If you have a paper savings bond but your bank can’t cash it, you’ll need to redeem it online at TreasuryDirect or at a financial institution that will cash savings bonds for non-account holders. Wells Fargo and Truist are two banks that will do this, provided that the bonds total less than $1,000 and you bring proper documentation. I cashed several bonds at Wells Fargo recently, where I am not an account holder, and I needed two forms of ID.

What documents do I need to cash a savings bond?

Generally, if you’re listed as the registered owner of the savings bond, you should need to bring just the paper bond and one or two current forms of identification to a bank or credit union.

While a paper savings bond looks like a check, do not sign it until you are told to do so during the redemption process.

If you are the owner or beneficiary of a bond that does not list your current name, you’ll need proof of your name change. I cashed in a few bonds recently, and I brought a copy of my marriage certificate, my driver’s license with my current name, and my Social Security card with my old name.

Depending on your circumstances, you may need to provide other documentation. “For people listed as a beneficiary, a death certificate is needed to process the transaction,” Jennifer Elmore, a spokeswoman for Regions Bank, said via email.

Is it worth it to cash a savings bond?

If your bond is at least 30 years old, the answer is yes because it has stopped increasing in value. To find out whether yours has matured, or to see the current value or the next interest accrual date for unmatured bonds, use the Treasury Department’s savings bond calculator .

You can cash in a bond after a year, but you’ll pay a three-month interest penalty if you redeem it before you’ve had it for five years. There are some exceptions because of recent natural disasters .

Do I pay taxes when I cash in savings bonds?

Yes. You pay taxes when you cash your savings bond, though you can also pay before you cash your bond. Regardless of when, you’ll pay federal income tax and may be subject to other taxes on the interest earned from a savings bond.

According to TreasuryDirect, you can report the interest on savings bonds when you receive it, or you can report the interest annually even before you receive it. Most people wait until cashing in their bonds, the Treasury site notes, and that’s what I did in 2023. The two banks gave me receipts while I waited for the 1099-INT tax forms from them. For any bonds I cash online, the tax forms will be available in my TreasuryDirect account by Jan. 31 of the next year.

Savings bonds are a low-risk investment with a decent return. To my family members who gave me those bonds upon my birth, thanks! I’m now $1,200 richer.

You’re following Sara Clarke
Visit your My NerdWallet Settings page to see all the writers you're following.

On a similar note.

Download the app

Disclaimer: NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products, shopping products and services are presented without warranty. When evaluating offers, please review the financial institution’s Terms and Conditions. Pre-qualified offers are not binding. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly.

NerdUp by NerdWallet credit card: NerdWallet is not a bank. Bank services provided by Evolve Bank & Trust, member FDIC. The NerdUp by NerdWallet Credit Card is issued by Evolve Bank & Trust pursuant to a license from MasterCard International Inc.

Impact on your credit may vary, as credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.

NerdWallet Compare, Inc. NMLS ID# 1617539

California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812

Insurance Services offered through NerdWallet Insurance Services, Inc. (CA resident license no.OK92033) Insurance Licenses

NerdWallet™ | 55 Hawthorne St. - 10th Floor, San Francisco, CA 94105