How do you cash U.S. savings bonds?


Quick Answer

As of 2015, Investors redeem electronic savings bonds through TreasuryDirect, but they can only redeem paper savings bond at certain local banks and financial institutions or by mailing them to the Treasury Retail Securities Site. Electronic bonds redeemed online are transferred to a person's checking or savings account, explains TreasuryDirect.

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How do you cash U.S. savings bonds?
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Full Answer

An electronic series, or EE, bond earns interest for up to 30 years, which means that bond holders who hold on to the bond for longer accrue more interest. If an investor cashes in an EE bond before five years pass, the owner loses the last three months of interest on the bond. A person exchanging electronic bonds for cash can redeem a minimum of $25 and may choose to only redeem part of a bond's total value. The redemption may include a combination of the principal bond value and interest accrued, according to TreasuryDirect.

A paper bond requires the investor to check with local financial institutions for regulations on dollar limits and any required documents, according to TreasuryDirect. If the bond's owner is already a customer of the bank where he is redeeming the bond, an active account and proper identification may be the only necessary requirements. However, some financial institutions may put limits or other requirements on bond redemptions if the bond holder does not have an account at that institution.

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