Savings Bond Redemptions Frequently Asked Questions (2024)

FAQs

How long does it take to get savings bonds redeemed? ›

When you cash your bonds online, the cash generally transfers to your checking or savings account within two business days of the request.

You can report the interest each year you earn it or when you cash the bond. You will report it on Schedule B of your 1040. You can avoid these taxes by using the money for qualified higher education expenses.

Log into your primary TreasuryDirect® account. Click the ManageDirect_® tab at the top of the page. Under the heading Manage My Securities, click "Redeem securities". On the Redemption page, choose the button beside the security type you want to redeem and click "Submit".

You should contact your bank directly for more information. For redemption or other information about U.S. savings bonds, visit the U.S. Treasury Department's web page, www.treasurydirect.gov, or contact their office directly by calling (844) 284-2676 (toll-free).

You can call the Savings Bond Processing Site at (800) 553-2663 to check on the status of a savings bond.

If you're cashing in a paper savings bond of $1,000 or less, you'll need FS Form 1522 and a copy of your driver's license, passport, state ID or military ID. If the bond amount is more than $1,000, you must have your signature certified by a notary or certifying officer.

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.

Can you cash in a savings bond at any bank? Savings bonds can generally be redeemed with the bank where you have a checking account. For example, at Bank of America, customers who have had a checking or savings account open for at least six months can easily cash in their savings bonds.

If you cash a paper savings bond at a local bank, that bank is responsible for giving you a 1099. If you cash a paper savings bond by mailing it to Treasury Retail Securities Services, we mail you a 1099 by January 31 of the following year. (You can call us for a duplicate statement, if needed, beginning February 15.)

Does cashing savings bonds count as income? ›

For paper savings bonds

The 1099-INT will only come when someone cashes the bond or the bond matures. The interest will be reported under the name and Social Security Number of the person who cashes the bond or who owns it when it matures. The 1099-INT will include all the interest the bond earned over its lifetime.

Your redemption will be processed with or without withholding, as you elect. If you do not return this election form within 30 days of the date of the enclosed letter, your bonds will be redeemed and Federal income tax WILL BE WITHHELD from the redemption proceeds.

Do the address and Social Security Number on the bonds have to match the customer's address and Social Security Number? Not necessarily. The customer may have moved or the bonds may have been a gift and contain the purchaser's information.

When you redeem it, you'll receive a Form 1099-INT that shows the full amount of interest the bond earned. You can report the interest earned every year. If you do, you can subtract the interest you paid tax on in prior years from your taxable income.

How long does it take to withdraw premium bonds? Most prizes are paid out within seven working days, however if you opt to receive your prize by post as a cheque, this may take a little longer. You can also opt to cash in your current premium bonds at any point and it takes approximately three working days.

We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.

Savings bonds earn interest until they reach "maturity," which is generally 20-30 years, depending on the type purchased.