How to Cash Paper Savings Bonds at a Bank: Complete Step-by-Step Checklist

Cashing paper savings bonds doesn’t have to be confusing or stressful. Whether you’re ready to redeem bonds you’ve held for years or need quick access to funds, knowing the exact process saves time and prevents bank trips with missing documents. This guide walks you through everything you need to successfully cash your paper savings bonds at any participating bank.

Many bond holders put off redeeming their savings bonds simply because they’re unsure about the process. The good news? Once you understand what’s required and come prepared, most redemptions take less than 30 minutes at the bank.

What You Need Before Going to the Bank

Preparation is key to a smooth redemption experience. Missing even one required document means making another trip to the bank, so gather everything beforehand.

Essential Documents:

Valid government-issued photo ID – Your driver’s license, passport, or state ID must be current and match the name on the bonds
Social Security card or Individual Taxpayer Identification Number – Banks need to verify your tax ID for IRS reporting
The actual paper savings bonds – Bring the original certificates in good condition
Proof of address – Only needed if your current address differs from what’s on your ID
Death certificate – Required if you’re redeeming bonds inherited from someone else
Power of attorney documents – Necessary if you’re cashing bonds on behalf of another person

Keep your paper bonds in a safe place until redemption. Damaged bonds may require additional verification or replacement through the Treasury Department, which can delay your access to funds.

Pro tip: If your bonds are very old and your name has changed due to marriage or other reasons, bring documentation of the name change to help the bank verify your identity.

Which Banks Accept Paper Savings Bond Redemptions

Not every financial institution handles savings bond redemptions. Here’s where you can successfully cash your paper bonds:

Major Banks That Typically Accept Bonds:

Bank of America
Wells Fargo
Chase
Citibank
PNC Bank

Local Options:

Most community banks
Credit unions (even if you’re not a member)
Regional banking chains

Important considerations:

Some banks require you to have an account with them
Smaller institutions may have daily cash limits
Federal Reserve Banks handle larger redemptions (over $1,000)

Before visiting, call ahead to confirm the bank handles bond redemptions and ask about any account requirements. This simple phone call can save you time and frustration.

For bonds worth more than $1,000 or if local banks can’t help, contact your nearest Federal Reserve Bank. They’re required to process all savings bond redemptions regardless of amount.

Step-by-Step Process at the Bank

Here’s exactly what happens when you arrive at the bank to cash your paper savings bonds:

Step 1: Present Your Documents Approach a teller and explain you want to redeem savings bonds. Hand over your ID and the bonds you want to cash.

Step 2: Complete Form FS 1522 The bank will provide Form FS 1522 (Request to Cash United States Savings Bonds). Fill it out completely – incomplete forms cause delays.

Step 3: Identity and Ownership Verification The teller will verify you’re the rightful owner by comparing your ID to the bond certificates and checking signatures if required.

Step 4: Bond Validation and Value Calculation The bank will validate the bonds’ authenticity and calculate their current redemption value using Treasury tables or electronic systems.

Step 5: Choose Your Payment Method You can receive your money as:

Cash (subject to bank daily limits)
Cashier’s check
Direct deposit to your account

Step 6: Tax Documentation The bank will provide Form 1099-INT showing the taxable interest you earned. Keep this for tax filing.

The entire process typically takes 15-30 minutes, though complex situations involving co-owners or inherited bonds may take longer.

Important Rules and Restrictions to Know

Understanding federal savings bond rules prevents surprises and ensures a smooth redemption:

Timing Requirements:

Minimum holding period: You must hold bonds for at least 12 months before cashing
Early redemption penalty: Bonds cashed before 5 years forfeit the last 3 months of interest
Maximum earning period: Bonds stop earning interest 30 years after issue

Co-owner Rules: If your bond lists two owners connected by “OR,” either person can redeem it alone. However, bonds with “AND” between names typically require both owners to be present or provide notarized consent.

Tax Implications:

Interest earned is subject to federal income tax
Some bonds may be exempt from state taxes
You’ll receive Form 1099-INT for amounts over $10

Amount Limitations: While there’s no federal limit on how many bonds you can redeem, individual banks may have daily cash limits. For large redemptions, consider accepting a cashier’s check instead of cash.

Use our iBond calculator to estimate your bonds’ current value before visiting the bank. This helps you verify the bank’s calculations and plan for any tax implications.

Practical Tips & Tool Integration

Before You Go: Calculate your bond’s current value beforehand using the Treasury’s official calculator or our iBond calculator tool. This preparation helps you verify the bank’s calculations and plan for tax implications.

Smart Timing: Consider when you redeem your bonds strategically. Redeeming in January may simplify tax filing, and remember that bonds stop earning interest 30 years after issue.

Documentation Tips: Bring extra identification if your bonds are old and your name or address has changed. Banks appreciate thorough documentation and it speeds up the process.

Large Redemptions: For bonds worth several thousand dollars, call ahead to ensure the bank can handle the transaction. Some smaller branches may need advance notice for large cash requests.

Record Keeping: Make copies of your bonds before redemption and keep all paperwork, including the 1099-INT form, for your tax records.

Frequently Asked Questions

Can I cash bonds that aren’t in my name? Generally no, unless you’re a legal beneficiary or have proper documentation like a death certificate or power of attorney. The bank will verify ownership before processing any redemption.

How long does the bank process take? Most redemptions take 15-30 minutes once you have all required documents. Complex cases involving inheritance or co-owners may take longer or require additional verification.

Is there a limit to how many bonds I can cash? No federal limit exists on the number of bonds, but banks may have daily cash limits. For large amounts, consider requesting a cashier’s check or direct deposit instead of cash.

What if I lost my paper bonds? Contact the Treasury’s Bureau of the Fiscal Service to request replacements using Form PD F 1048. This process takes several weeks, so start early if you need the funds by a specific date.

Conclusion & Call-to-Action

Cashing paper savings bonds at a bank is straightforward when you come prepared with the right documents and understand the process. Remember to calculate your bond’s current value beforehand and consider the tax implications of your redemption timing.

Ready to check what your bonds are worth today? Use our iBond calculator to estimate values and explore our other guides for maximizing your savings bond strategy. Whether you’re planning to cash bonds soon or just want to track their progress, having the right information helps you make informed decisions about your conservative savings strategy.

For more helpful resources, explore our comprehensive guides on savings bond basics and conservative investment strategies to make the most of your bond investments.