If you have an old savings bond that’s been sitting around for a while, or if someone opened one in your name, it might be time to cash it in.

Savings bonds can mature and stop earning interest after a certain period, so it’s worth checking to see if your bond is ready for redemption. If you’re ready to cash in your old savings bond, here’s what you need to do to get started.

What type of savings bond do you have?

There are three types of savings bonds, each with specific characteristics and tax implications. While the principal amount in any of these bonds is exempt from state taxes, the interest earned is subject to federal taxation.

Series E
Series E bonds are no longer issued, as production ceased in 1980. These bonds had a maximum maturity of 40 years if issued before November 1965 and 30 years for those issued afterward. For example, a Series E bond issued in 1978 would have matured in 2008.

Series EE
Series EE bonds replaced the E bonds and offer different interest rates depending on their issue date. Bonds issued after May 2005 feature a fixed interest rate, while those issued before that date have variable rates. Similar to Series E, Series EE bonds can earn interest for up to 30 years.

Series I
Series I bonds are designed to guard against inflation. They combine a fixed interest rate with a semiannual inflation rate based on the Consumer Price Index (CPI).

When is the right time to cash in savings bonds?

Before cashing in your savings bonds, consider the following important factors:

Watch for Penalties
For Series EE and Series I bonds, redeeming the bond before it reaches the five-year mark means you’ll forfeit the interest earned over the previous three months.

Consider Potential Earnings
The interest rates on bonds can vary significantly based on the type and issue date. For instance, a Series EE bond purchased in January 2000 offers a 0.77% interest rate, whereas a Series I bond from the same time has a much higher rate of 10.64%. Holding onto a high-interest Series I bond could be more profitable if you wait a bit longer before cashing it in.

Evaluate Your Needs
If you need immediate funds for unexpected expenses, redeeming your savings bond could provide financial relief. Consider how the bond fits into your overall financial strategy and whether it meets your current needs.

Can you cash in a savings bond at any bank?

You can typically redeem savings bonds at the bank where you have a checking or savings account. For instance, at Bank of America, customers who have maintained an account for at least six months can cash in their savings bonds with ease.

If redeeming your bond at your bank isn’t an option, you can handle it directly through the Treasury Department. To do this, download FS Form 1522, have the form signed and certified, and then mail your unsigned bonds to:

Treasury Retail Securities Services
P.O. Box 9150
Minneapolis, MN 55480-9150

Find out how much your savings bond is worth

Determining the value of your bond is straightforward with the Treasury Department’s online calculator. Visit the TreasuryDirect website, enter details such as the bond type, serial number, and issue date to receive a comprehensive report on its value, year-to-date interest, and maturity date.

If you’re looking to maximize your returns, consider comparing your bond’s interest rate with other investment options. High-yield savings accounts, for example, can provide competitive rates and offer more flexibility.