Yes, you can cash out U.S. Treasury Savings Bonds (Series I and EE) early, generally anytime after holding them for at least 12 months, via your TreasuryDirect account. Redeeming before 5 years results in a penalty of the last 3 months of interest, but you will not lose principal. For marketable securities (Bills, Notes, Bonds), you can sell them on the secondary market anytime.
You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest. See Cash in (redeem) an EE or I savings bond.
You can hold a Treasury marketable security until it matures or sell it before it matures. To sell a Treasury marketable security, you must work through a bank, broker, or dealer.
You can't sell Treasury bonds at Treasury Direct before maturity. They don't allow it. The only option is to transfer to a broker, but you tried that.
Note: United States Savings Bonds must be held for a minimum of one year from their issue date before they are eligible to be redeemed.
Treasury bonds and other types of investment bonds are typically taxable, but there are some exceptions depending on the type of bond you're dealing with. If you're considering investing in bonds, here's what you need to know about how investment bonds are taxed and what you can do to minimize your tax liability.
Investors who hold a bond to maturity (when it becomes due) get back the face value or "par value" of the bond. But investors who sell a bond before it matures may get a far different amount. For example, if interest rates have risen since the bond was purchased, the bondholder may have to sell at a discount—below par.
You may exclude bond interest from federal tax if:
We sell Treasury Bonds for a term of either 20 or 30 years. Bonds pay a fixed rate of interest every six months until they mature. You can hold a bond until it matures or sell it before it matures. EE Bonds, I Bonds, and HH Bonds are U.S. savings bonds.
People buy 30-year Treasury bonds for ultimate safety (backed by the U.S. government), predictable long-term income (semi-annual interest), and tax advantages (exempt from state/local tax), making them ideal for conservative investors prioritizing capital preservation and long-term goals, though they carry interest rate risk if sold before maturity and often offer lower returns than riskier assets.
When you cash your bonds online, the cash generally transfers to your checking or savings account within two business days of the request.
If you wish to terminate your T-Bills investment before maturity, you can easily do so as T-Bills are traded in the secondary market so you can easily access your funds.
Interest income from Treasury bills, notes and bonds - This interest is subject to federal income tax but is exempt from all state and local income taxes.
As of early January 2026, U.S. Treasury yields showed slight daily fluctuations, with the 10-Year Treasury yield hovering around 4.18% - 4.21%, the 2-Year around 3.51%, and the 30-Year near 4.85%, following mixed economic data, particularly a jobs report. These yields are sensitive to Federal Reserve policy expectations and inflation data, with recent trends showing an upward movement in longer-term yields.
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.
However, the longer you hold the bond, the more it earns for you (for up to 30 years for an EE or I bond). Also, if you cash in the bond in less than 5 years, you lose the last 3 months of interest.
There is a 3-month interest penalty if you cash an EE or I Bond within the first five years from its issue date. Are there any fees for redeeming EE and I Bonds? No. We don't charge any fees for redeeming savings bonds.
You can cash savings bonds without paying federal tax if you use the interest for qualified higher education expenses for yourself, spouse, or dependent, meeting specific income and age (owner must be 24+) rules on IRS Form 8815 and TreasuryDirect.gov. Otherwise, you can defer the federal tax until redemption or roll the proceeds into a 529 plan to avoid tax, though state/local taxes generally don't apply to savings bonds.
TreasuryDirect: Getting your IRS Form 1099
If your securities are in your TreasuryDirect account, your 1099 is available at the beginning of each year.