Cashing I Bonds

Cashing Options

You can cash your I Bond any time after six months and get your original investment plus earnings. However, I Bonds are meant to be longer term investments, so if you cash a bond within the first five years, you'll forfeit three months' worth of earnings.

Where to Cash I Bonds

You can cash your I Bonds at most local financial institutions. The bonds must be at least six months old and you must be able to identify yourself as the owner, co-owner, or other entitled person. When you present bonds for cashing, you can establish your identity in several ways. Two of the ways you can do this are: (1) by being a customer with an active account open for at least six months at the financial institution that will be paying your bonds; or (2) by presenting documentary identification such as a driver's license. You're allowed to cash up to $1,000 worth of bonds at one time based upon documentary identification alone.

If you're not the owner or co-owner of the bonds you're cashing, you have to establish your identity and also establish that you're entitled to cash the bonds. For example, if you're the beneficiary presenting bonds registered in beneficiary form ("John Doe, payable on death to Mary Doe") you must identify yourself as the beneficiary named on the bonds and also present a certified copy of the owner's death certificate. Before presenting bonds for payment, you might want to check with your financial institution to find out what identification and other documents you need.

In some cases, your transaction may have to be sent to a Federal Reserve Bank that provides savings bonds services. An officer or other authorized employee of your financial institution can assist you by certifying your signature in the spaces provided for that purpose on the back of each bond.

You can cash bonds for your child if he's too young to sign the request for payment and he lives with you or you've been granted legal custody.

When you cash savings bonds and savings notes, the institution paying the bonds will report interest earned on the bonds or notes to both you and the IRS. You will receive an IRS Form 1099-INT from the institution, either at the time you cash your bonds or shortly after the end of the year in which you cashed the bonds. At the time you cash bonds, it's a good idea to make sure you know how much interest you received. Keep this information for your personal records so it can be accurately reported on your tax return and so you will know what the 1099-INT you receive the following year is for.

Since the 1099-INT is issued to the person cashing the bonds, it's possible that you might receive a 1099-INT for interest that should be reported by someone else or for interest that you previously reported on your taxes. Don't ask the financial institution to issue the 1099-INT to someone else or to reduce the interest shown. IRS has issued instructions for you to follow in these situations. See IRS Publication 550, "Investment Income and Expenses." You might also want to discuss the specifics of your situation with an IRS taxpayer service representative.

Information on when interest is reportable and who should report it for Federal income tax purposes can be found in the section on Tax Reporting.

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Updated March 7, 2026