You can deposit a savings bond into a checking account, but only after it has matured and you have cashed it first
A savings bond is not a check or a direct deposit — it is a debt instrument issued by the U.S. Treasury. Your bank cannot deposit the bond itself into your account. Instead, you must cash the bond through the Treasury or a bank that handles bond redemptions, receive the cash or a check, and then deposit that into your checking account as a separate transaction.
The process has two distinct steps: redeeming the bond for money, then moving that money into your account. Skipping the first step or trying to deposit the bond document itself will not work.
Key Takeaways
- Savings bonds must be redeemed (cashed) before the money can enter your checking account — the bond document itself cannot be deposited.
- Series EE and Series I bonds can be redeemed at most banks, but some banks limit redemptions to customers only or require the bond to have matured.
- The Treasury Department's TreasuryDirect website allows you to redeem bonds online if they are registered in your name and you have a TreasuryDirect account.
- After you receive cash or a check from the bond redemption, you deposit that into your checking account through normal deposit methods — ATM, mobile app, or teller.
Where to redeem a savings bond
Most banks will redeem Series EE and Series I savings bonds for their customers. Call your bank's main number or visit a branch to ask whether they handle bond redemptions and what documents you need to bring. Many banks require you to be an account holder, and some have limits on how many bonds they will redeem in one visit or per month.
If your bank does not redeem bonds or you do not have a bank account, you can redeem through the TreasuryDirect website (treasurydirect.gov) if the bond is registered in your name and you have a TreasuryDirect account. The money goes directly into the bank account linked to your TreasuryDirect profile. You can then transfer it to your checking account if it went to a different account.
The Federal Reserve also maintains a list of banks that redeem savings bonds. If your bank is not one of them, the Federal Reserve's website can point you to a participating bank in your area, though you may need to visit in person.
What you need to bring to redeem a bond
Bring the physical bond certificate and a valid photo ID. If someone else is redeeming the bond on your behalf, they will need a power of attorney or a notarized letter from you authorizing them to do so. If the bond is in the name of a minor, a parent or guardian must be present.
If you have lost the bond certificate, you can request a replacement through TreasuryDirect or by contacting the Bureau of the Fiscal Service. This process takes longer than a simple redemption, so plan ahead if you cannot locate the original.
How long redemption takes
If you redeem at a bank in person, you typically receive cash or a check the same day. If you use TreasuryDirect online, the money is deposited into your linked bank account within one to two business days.
Once you have the cash or check, depositing it into your checking account is immediate if you use an ATM or mobile deposit, or it posts within one business day if you hand it to a teller.
Maturity and early redemption rules
Series EE bonds must be held for at least one year before you can redeem them. If you redeem before five years have passed, you lose the last three months of interest. Series I bonds have the same one-year minimum, with the same five-year penalty for early redemption.
Some banks will not redeem bonds that have not reached their maturity date, even if they meet the one-year minimum. Ask your bank about their policy before you attempt to redeem early. TreasuryDirect will allow redemption after one year but will calculate the penalty automatically.
Tax reporting when you deposit bond money
Depositing the redeemed bond money into your checking account does not trigger any new tax event — the money itself is not taxable at deposit. However, the interest earned on the bond is subject to federal income tax in the year you redeem it. You will receive a Form 1099-INT from the Treasury or the bank that redeemed the bond, showing the interest amount.
State and local taxes on savings bond interest vary by location. Some states do not tax federal savings bond interest at all. Check your state's tax rules or consult a tax professional if you are unsure.
What to do if your bank will not redeem the bond
If your bank declines to redeem a savings bond, your options are to find another bank that does, use TreasuryDirect if the bond is in your name, or contact the Federal Reserve's Savings Bond Division. You can also mail the bond to the Bureau of the Fiscal Service with a redemption request form, though this takes several weeks.
Before you try a different bank, confirm that your bond meets their requirements — some will only redeem bonds for account holders, and some have restrictions on bond type or age. Calling ahead saves a trip.
Frequently Asked Questions
Can I deposit a savings bond directly into my checking account online?
No. You must redeem the bond first through a bank, TreasuryDirect, or the Federal Reserve, and then deposit the resulting cash or check into your checking account. The bond document itself cannot be deposited through mobile banking or any other method.
What if the savings bond is in someone else's name?
If you are not the registered owner, you cannot redeem it without written authorization from the owner. A notarized letter or power of attorney is required. If the owner has passed away, the bond becomes part of their estate and must go through probate or a simplified estate process before it can be redeemed.
Do I have to deposit the bond money into a checking account, or can it go to savings?
You can deposit the redeemed bond money into any account type — checking, savings, money market, or another bank entirely. The redemption process does not care where the money ends up, only that you have a valid account to receive it.
How much interest will I earn if I redeem my bond early?
If you redeem before five years, you forfeit the last three months of interest. The exact amount depends on how long you held the bond and the interest rate it earned. TreasuryDirect or your bank will show you the net amount you will receive before you complete the redemption.
Can I redeem a savings bond at an ATM?
No. Savings bonds can only be redeemed at a bank teller, through TreasuryDirect online, or by mail to the Federal Reserve. ATMs do not handle bond redemptions.