Surprising Signs You Won’t Be Able To Cash Your US Savings Bonds

JohnnyGreig / iStock/Getty Images

Maybe a parent or grandparent put a bond in your stocking for Christmas a while ago — you’ve been holding on to it for years, patiently waiting for it to mature so you can cash in. 

Be prepared to wait a bit longer. Many banks have become less willing (or unable) to cash your savings bonds. 

Banks Say They Have Fraud Concerns 

Savings bonds — or Cash EE or I savings bonds — are government-backed bonds with maturities of up to 30 years. The longer you hold onto the bond, the more interest it earns. 

You must cash a paper bond for its entire value at a bank or with TreasuryDirect. 

According to the U.S. Department of the Treasury, each bank has its own policies on how much it will cash at a time — or if it’ll do so at all. 

In recent years, many banks have placed stricter policies, making it harder to redeem savings bonds. They cite fraud concerns, saying it’s difficult to verify bond ownership, which makes it hard to process the redemption. 

If you’re cashing out a bond, you may be asked to provide extensive documentation proving you own the bond. And even then, some banks may claim they lack the resources or protocols to facilitate the transactions. This can leave bondholders frustrated and unable to access the funds they’re owed.

How To Cash a Bond 

Check with your bank to see if they offer bond cashing services. While many large retail banks have moved away from redeeming paper bonds, some smaller community banks and credit unions still perform this service. 

Even if your bank offers bond cashing services, your local branch may not. Double-check to see which physical locations are offering this service. 

You can also cash a bond with TreasuryDirect.gov, which has no limit on how many bonds you can cash at once. 

To avoid any issues, make sure you pull together the right documents before cashing a bond:

• The physical bond certificate: While many bonds are now electronic, older bonds were issued as paper. Banks will likely require the original certificates when cashing them in.  
• Your valid photo ID: Any government-issued ID, like a driver’s license or passport, is needed to verify your identity.
• Receipts or records of purchase: For added proof of ownership, provide any receipts from initially buying the bond. 
• Bank account details: Supply your bank’s routing and account numbers to receive your funds via direct deposit.  

While redeeming a bond can be slightly complicated, familiarizing yourself with the process can make your bond-cashing journey smoother. 

More From GOBankingRates