Yes, U.S. Bank can cash savings bonds, but you generally need to be an established customer with a checking, savings, or money market account open for at least five years to cash larger amounts (over $1,000) at a branch, with specific requirements for identification and signature certification. For smaller amounts or if you don't meet those criteria, you might redeem them at other banks, through TreasuryDirect by mail using FS Form 1522, or schedule an appointment.
To cash in a savings bond(s) at your local branch you must meet the following: A signer on a U.S. Bank checking, savings or money market account that has been open for five (5) years or more. Listed as the owner or co-owner of the savings bonds.
Banks and credit unions can redeem savings bonds over the counter. Find out more about becoming an agent and redeeming savings bonds.
You can cash paper savings bonds at most banks and credit unions, especially if you're an account holder, or redeem them electronically through TreasuryDirect.gov, the official U.S. Treasury site, which is required for electronic bonds and often simpler for paper ones over $1,000 or for non-customers. Banks might have limits or require accounts, so check with yours first; otherwise, use TreasuryDirect.gov and FS Form 1522 if needed, often with a certified signature.
If you have a paper E/EE or I bond, you'll need to take a few additional steps. In addition to the bonds, you'll need to provide proof of identity, like a United States driver's license, and partner with a notary to notarize and certify your signature on an unsigned FS Form 1522 to your local bank or credit union.
The best time to cash a U.S. savings bond (Series EE or I) is after 5 years to avoid losing interest, but ideally at 20 years for EE bonds (guaranteed to double) or 30 years for full maturity, as they stop earning interest then, preventing inflation loss; always cash on the first of the month to maximize interest earned, but never before 1 year.
A $1,000 U.S. savings bond (Series EE or I) held for 30 years can be worth roughly $1,800 to over $2,000, depending on its specific issue date and interest rate, with modern Series EE bonds guaranteed to double in 20 years and continue earning interest, while older bonds' value depends on their historical rates, but always use the TreasuryDirect Calculator for exact figures.
In general, you must report the interest in income in the taxable year in which you redeemed the bonds to the extent you did not include the interest in income in a prior taxable year.
Even bonds that haven't yet reached maturity may be worth turning in if you need access to cash. Most bonds can be cashed in after one year, but you'll lose three months' worth of interest if you cash them in before five years. 3 You'll still get them back at their current value, however.
You can cash paper savings bonds at many banks and credit unions, but not universally; you usually need an account, and policies vary (some require account history, limits on amount). It's crucial to call your bank first to confirm they offer the service, what their specific rules are (like account age or redemption limits), and what forms of ID you need before you go. Electronic bonds are cashed through your TreasuryDirect account.
The individual owns the U.S. Savings Bond if only their name appears on it. The Social Security Number shown on a bond is not proof of ownership. EXAMPLE: A U.S. Savings Bond title reads, “John Smith.” Only John Smith can cash that bond.
Under the non-administered estate rules, a competent surviving spouse, blood relative, legally adopted child or next-of-kin can complete Form FS 5336 and provide required documentation to transfer or redeem the bonds.
Yes, savings bonds are worth money as a low-risk, government-backed investment that accrues interest over time, often doubling in value (Series EE) or protecting against inflation (Series I), offering tax advantages, though they are best for long-term goals rather than quick cash access. Their value depends on the series (EE or I), issue date, and current interest rates, growing slowly but steadily over decades.
Warren Buffett views bonds as a safe haven for cash, often recommending a 90/10 portfolio (90% S&P 500 index fund, 10% short-term government bonds) for average investors, while Berkshire Hathaway itself holds large amounts of U.S. Treasury bills for capital preservation and to earn competitive yields, especially when stocks are expensive. He favors short-term Treasuries (T-bills) due to low interest rate risk and high liquidity, using them to park cash while waiting for better stock opportunities, rather than as a primary growth engine.
Savings bonds earn interest until they reach "maturity," which is generally 20-30 years, depending on the type purchased. If a bond is held past its maturity, the federal government remains responsible for the debt.
If your savings bond from a Series other than EE, I, or HH has finished its interest-earning life, you could cash it and use the money for something else – a project, a financial need, or a new investment like an interest-earning savings bond or other Treasury security.
You can determine the value for an electronic savings bond by logging into your TreasuryDirect account. For paper bonds, use the savings bond calculator.
Normally, the interest you earn on your savings bonds becomes part of your gross income for tax purposes. Under certain conditions, though, you can avoid taxes on the interest by using it to pay for higher education.