How to Redeem Savings Bonds

Whether you bought savings bonds during inflation’s peak last year or have older bonds collecting dust, take these steps to cash them in.

- ELLA VINCENT

BASICS 

THANKS to rising in­ flation, Series I savings bonds have enjoyed a boom in popularity. I bonds issued from May 2022 through October 2022 earned a compos­ ite rate of 9.62% for the first six months, which prompted inves­ tors to stash more than $1 billion in I bonds in October alone. I bonds issued from May 2023 through October 2023 pay a com­ posite interest rate of 4.3% dur­ ing the first six months—a signifi­ cant drop but still an attractive return for a no­risk investment.

Although savings bonds can earn interest for up to 30 years, you may want to redeem them earlier. You can cash in I bonds, as well as EE bonds (which pay a fixed 2.5% rate for bonds is­ sued from May through Octo­ ber 2023), after you’ve owned them for a year. But if you re­ deem bonds within five years, you’ll lose the last three months of interest. Here are the steps you need to take if you’re ready to cash in your savings bonds.