Unlocking Your Savings: How to Cash in Savings Bonds



Savings bonds, often given as gifts or purchased for long-term savings, have been a staple of American finance for decades. While they may not offer the high returns of other investments, they are known for their low-risk nature and the assurance of their face value when held until maturity. If you’ve acquired savings bonds and are wondering how to cash them in, this guide will walk you through the process, provide essential information, and offer tips for making the most of your investment.

Types of Savings Bonds

Before delving into how to cash in savings bonds, it’s crucial to understand the various types of savings bonds available. The two most common types in the United States are:

Series EE Bonds: These are often referred to as “Patriot Bonds” and are typically purchased at half their face value. They accrue interest over 30 years and can be cashed in at face value, making them a long-term investment.

Series I Bonds: These bonds are indexed to inflation and provide a reliable way to protect your investment from the eroding effects of rising prices. I Bonds have a fixed interest rate and an inflation rate that adjusts semi-annually, making them a sound choice for preserving your savings.

When to Cash in Savings Bonds

One of the essential factors in cashing in savings bonds is knowing when to do so. Here are the key considerations:

Maturity Date: EE Bonds have a maturity date of 30 years, while I Bonds can be cashed in after one year. For the highest returns, wait until your bonds reach their maturity date.

Interest Earnings: EE Bonds continue to earn interest for up to 30 years, so consider holding onto them as long as possible to maximize your returns. I Bonds can be cashed in after the one-year mark but will offer more substantial interest after five years.

Financial Goals: Evaluate your financial goals and current needs. If you require the funds for an emergency or a specific expense, it may be the right time to cash in your savings bonds.

How to Cash in Savings Bonds

The process of cashing in savings bonds is straightforward, but it’s essential to do it correctly to avoid any unnecessary complications. Here’s a step-by-step guide:

Check Maturity Date: Ensure your bonds have reached their maturity date if you want to maximize your returns. You can find the maturity date on the bond certificate.

Gather Required Information: You’ll need your social security number and the bond certificate numbers. If the bonds are lost, stolen, or destroyed, you can apply for replacements.

Choose a Method: There are two primary methods for cashing in savings bonds: through a financial institution or via the U.S. Department of the Treasury’s TreasuryDirect website.

Financial Institution: Many banks, credit unions, and other financial institutions can help you cash in your savings bonds. Call ahead to confirm they offer this service and inquire about any associated fees.

TreasuryDirect: If you prefer an online option, you can set up an account on the TreasuryDirect website. This platform allows you to manage your savings bonds electronically and cash them in when desired.

Complete the Required Forms: Depending on your chosen method, you may need to fill out specific forms. These forms are typically straightforward and involve providing basic information about the bonds you’re cashing in.

Receive Your Payment: Once you’ve completed the necessary steps and the bonds have been verified, you’ll receive your payment in the form of a check or a direct deposit to your bank account.

Maximizing Your Savings Bond Returns

While cashing in savings bonds can provide you with a lump sum of money, it’s crucial to consider your broader financial plan. Here are some tips for maximizing your savings bond returns:

Plan for Taxes: The interest earned on savings bonds is subject to federal income tax, but it’s tax-deferred until you cash in the bonds. Consider the tax implications and plan accordingly.

Reinvest Wisely: If you cash in bonds with the intent to reinvest the funds, explore various investment options. Diversify your portfolio to balance risk and return.

Budget Strategically: If you’re cashing in savings bonds to cover expenses or achieve specific financial goals, create a budget to ensure the funds are used effectively.

Consult a Financial Advisor: If you have a significant sum of savings bonds or are unsure about your financial decisions, consult a financial advisor for guidance on the best course of action.


Cashing in savings bonds can provide you with a valuable financial resource when needed. By understanding the types of savings bonds, knowing when to cash them in, and following the correct process, you can make the most of your investment. Whether you choose to reinvest the proceeds or use them for essential expenses, your savings bonds can be a valuable tool in your financial arsenal. Remember to plan wisely, consider taxes, and consult with professionals if necessary to ensure your financial success.