How to Sell Savings Bonds

How to Sell Savings Bonds

If you hold old savings bonds, you can sell or redeem them through the U.S. Treasury or a financial institution. The method depends on whether the bonds are electronic or paper, and whether you want the full cash value or a secondary-market price.

Redeem Directly With the Treasury

The simplest route is to redeem electronic Series EE or I bonds through TreasuryDirect. You can cash in any amount after the bond has been held for at least 12 months. If you redeem before five years, you forfeit the last three months of interest. Paper bonds can be redeemed at most local banks, though some branches require you to be an account holder.

Use a Financial Institution or Broker

You can bring paper bonds to a bank or credit union for redemption, but not all institutions accept them, and policies vary. For a secondary market, specialized dealers and brokers such as TreasuryDirect purchases (via the Treasury's buyback program, when available) or private numismatic dealers handle older or rare bonds. Expect to receive less than face value if you use a broker.

Consider the Tax Impact

Interest on savings bonds is subject to federal income tax but exempt from state and local tax. You can defer tax reporting until the bond is redeemed or matures, or report interest annually. If the bonds are used for qualified education expenses, you may exclude the interest from income entirely, subject to income limits.

Check Bond Value Before Selling

Use the Treasury's online calculator at TreasuryDirect.gov to find the current value of your bonds based on the series, denomination, and issue date. Because paper bonds have been issued since 1935, older issues may have stopped earning interest but still hold collectible value beyond their face amount.

Know the Penalties and Limits

• 12-month minimum holding period for electronic bonds
• Three-month interest penalty if redeemed within five years
• Annual purchase limits apply to new purchases, not redemptions