Paper savings bonds are still sitting in drawers, safes, and safe deposit boxes all over America and cashing one in 2026 is a little harder than it used to be.

Savings bonds are now sold almost exclusively in electronic form through TreasuryDirect. The last way to get a new paper bond — the tax-time paper I bond program — ended on January 1, 2025. That means every paper savings bond out there is a legacy document, and the infrastructure for cashing them keeps shrinking: fewer banks will redeem them over the counter, and more redemptions are going through the mail to the Treasury.

There's also a new wrinkle for 2026: if you're in default on federal student loans, the government can intercept your savings bond payment through the Treasury Offset Program when you redeem by mail or through TreasuryDirect. We cover that below.

Here's everything you need to know about cashing a paper savings bond in 2026.

What Are Savings Bonds And How Do They Work?

Savings bonds have been around since 1935. When you buy federal savings bonds, you are lending money to the government, which agrees to pay that money back later, with interest.

The U.S. currently offers two types of savings bonds: Series EE and Series I. Both earn interest for 30 years. You can redeem a bond after holding it for one year, but if you cash it before five years, you forfeit the last three months of interest.

If your paper bond is more than 30 years old, it has stopped earning interest entirely — the money is just sitting there losing value to inflation. The Treasury estimates billions of dollars in matured, unredeemed savings bonds are still outstanding.

Not sure what your bond is worth? Use the Savings Bond Calculator at TreasuryDirect.gov. You'll need the series, denomination, and issue date printed on the face of the bond.

Where To Cash A Paper Savings Bond

You have two options: a bank or credit union, or mailing the bond to the Treasury.

Option 1: Your Bank Or Credit Union

Many banks still cash paper Series E, EE, and I bonds — but this is getting harder every year. Banks are not required to redeem savings bonds, and most have tightened their policies:

Most banks will only cash bonds for established customers — the Secret Service recommends (and many banks require) that you have held an account for at least 12 months before they'll redeem bonds for you. Many banks also cap the dollar amount they'll redeem in a single visit, and some branches have stopped cashing bonds entirely.

Call your bank before you go. Ask whether they redeem savings bonds, whether there's a dollar limit, and what identification they require.

The upside of the bank route: you get your money immediately, and the payment is made over the counter by the bank.

Option 2: Mail Your Bonds To The Treasury (FS Form 1522)

If your bank won't cash your bonds — or you have a large batch — you can redeem them directly with the Treasury:

1. Fill out FS Form 1522 (Special Form of Request for Payment of United States Savings and Retirement Securities). TreasuryDirect has step-by-step instructions.
2. If the total value of the bonds is $1,000 or less, you can simply sign the form and include a copy of your government-issued ID. If the value is more than $1,000, you must sign the form in front of a certifying officer (most banks and credit unions offer signature certification — a notary stamp alone is not accepted).
3. Include your bank routing and account numbers on the form for direct deposit.
4. Mail the unsigned bonds and completed form to: Treasury Retail Securities Services, P.O. Box 9150, Minneapolis, MN 55480-9150.

Expect processing to take several weeks — the Treasury currently says at least six weeks in many cases. Consider mailing with tracking. Don't sign the backs of the bonds themselves.

The Treasury also has special procedures for less common situations: bonds owned by minors, deceased owners' estates, name changes, and owners living outside the U.S. Details are on TreasuryDirect's cashing page.

When Should You Cash A Paper Savings Bond?

There are a few scenarios where cashing your paper savings bond makes sense:

The bond is more than 30 years old. It has stopped earning interest. There is no benefit to continuing to hold it — redeem it and put the money to work elsewhere.

You can earn more elsewhere. Depending on when your bond was issued, its rate may be well below what you could earn in a high-yield savings account, CD, or a diversified index fund portfolio. Check your bond's current rate with the Savings Bond Calculator before deciding.

You need the money. Bonds more than a year old can always be redeemed. Just remember the three-month interest penalty if the bond is less than five years old.

One more option worth knowing: instead of cashing paper bonds, you can convert them to electronic bonds in TreasuryDirect using its SmartExchange feature, which makes them easier to track and redeem later.

And if you think you (or a deceased family member) might own bonds you can't find, check Treasury Hunt at TreasuryDirect.gov — it's the Treasury's free search tool for matured, unredeemed bonds.

Do I Owe Taxes When I Cash A Paper Savings Bond?

Yes, but just on the interest. Savings bond interest is subject to federal income tax (but exempt from state and local income tax). Unless you elected to report the interest annually (most people don't), all the interest is taxable in the year you redeem the bond.

If you cash at a bank, the bank will issue Form 1099-INT — either on the spot or by mail the following January. If you redeem by mail or through TreasuryDirect, your 1099-INT will be available from the Treasury.

One potential tax break: if you use the proceeds of Series EE or I bonds for qualified higher education expenses in the same year, you may be able to exclude some or all of the interest from income. The education exclusion has income limits and other requirements — see IRS Form 8815 for details.

An offset doesn't change your tax bill, either. If part of your redemption is taken for a defaulted student loan, the interest is still taxable income to you in the year of redemption.

The Bottom Line

Cashing a paper savings bond in 2026 takes a little more planning than it used to. Call your bank first — if they'll redeem your bonds, that's the fastest route. If not, FS Form 1522 and a trip to the post office will get it done in a few weeks.

If your bonds are more than 30 years old, don't wait: they stopped earning interest long ago. And if you're in default on federal student loans, deal with the default (or at least know your offset status) before you mail bonds to the Treasury — otherwise your redemption check may go toward your loans instead of your bank account.