Who Can Redeem
- Only an owner listed on the savings bond can redeem the bond. The person cashing the bond must be a sole owner or co-owner. If co-owners are listed, either one can redeem the bond. Minors old enough to sign the bond can cash their own savings bonds; a parent or legal guardian can receive payment for those too young. Generally speaking, a savings bond cannot be redeemed by someone who does not have an ownership interest printed on the bond. Savings bonds cannot be transferred by sale or gift to another person. If the savings bond owner is deceased, the beneficiary or person handling the estate will be required to present a certified copy of the death certificate.
When to Redeem
- A savings bond cannot be redeemed during the first year after it is issued. Bonds cashed within the first five years are charged a penalty of the most recent three months of interest earnings. Savings bonds continue to earn interest for up to 30 years after issue. Calculate the current value of a savings bond using the online savings bond calculator in the Tools section of the TreasuryDirect website.
Where to Redeem
- Savings bonds can be cashed at most financial institutions such as banks and credit unions. The best location to redeem a savings bond is at a bank in which you have established accounts. Using a bank you already use allows the bank to cash bonds in any amount. At a bank where the bond holder does not have any accounts, proper identification will be required and the bank will cash no more than $1,000 worth of savings bonds.
Redemption by Mail
- If a savings bond cannot be redeemed at the bank -- for example, if over the $1,000 limit -- the bond can be mailed to the Treasury for payment by government check. The bond owner must still go first to the bank to have her signature and identification verified by a bank officer. The bond owner writes her current address on the bond and mails to one of the Treasury retail securities centers. The Treasury Direct website provides a locator for the nearest retail securities center.