If you’ve ever received a paper savings bond as a gift or stumbled upon an old one tucked away in a drawer, you might wonder: what should I do with this? Paper savings bonds can be a great way to save or grow money, but managing them properly is essential — and the process has changed more in the past year than it has in decades.

What Are Paper Savings Bonds?

Savings bonds are a low-risk way to save money, backed by the U.S. government. Paper savings bonds were once a common investment and gift, but the U.S. Treasury moved to an all-electronic system in 2012, ending over-the-counter paper bond sales. As of January 2025, even the last remaining option for purchasing paper bonds — using your federal tax refund — has been eliminated. All savings bonds must now be purchased online through TreasuryDirect.

That said, millions of Americans still hold paper bonds from years past. The two most common types are Series EE bonds, which earn a fixed interest rate, and Series I bonds, which earn a rate that adjusts with inflation every six months. Both types earn interest for up to 30 years. Series I bonds are currently earning a composite rate of 4.03% through April 2026, making them still worth holding if they haven’t reached maturity. Both types are popular for long-term savings goals like education or retirement.

Step 1: Decide What to Do With Your Paper Savings Bonds

There are three main options for your paper savings bonds:

1. Hold onto them: If your bond hasn’t matured yet, it will continue to earn interest until it reaches its 30-year limit. There’s no rush to act — but it’s worth knowing when maturity is coming so you don’t miss it.
2. Cash them in: If your bond has matured and stopped earning interest, it’s time to redeem it. Bonds that have hit their 30-year mark are no longer growing in value, so holding onto them beyond that point doesn’t benefit you.
3. Transfer them to an electronic account: For safety and long-term convenience, you can convert your paper bonds into electronic form through the U.S. Treasury’s free online platform, TreasuryDirect. This is the option most financial experts recommend — though the process requires more patience than it once did, as processing times have lengthened significantly.

Step 2: Transfer Your Paper Bonds to TreasuryDirect

Converting your bonds to electronic form has several real advantages. Electronic bonds can’t be lost, stolen, or destroyed by fire or flood. You can track their value and maturity dates online at any time. And when they mature, TreasuryDirect automatically redeems them and deposits the funds — no trip to the bank required, and no dollar limits on how much you can redeem at once.

Note: This automatic payout only applies to electronic bonds held in TreasuryDirect. Paper bonds sitting at home will simply stop earning interest at 30 years with no notification and no automatic payment — another strong reason to convert sooner rather than later.

Here’s how the conversion process works:

1. Open a TreasuryDirect Account Visit TreasuryDirect.gov and create a free account. You’ll need your Social Security number, email address, and bank account information. Make sure your bank account information is current and accurate — this is where your funds will be sent upon redemption.

2. Establish a Conversion Linked Account Once logged in, go to the ManageDirect tab and select “Establish a Conversion Linked Account.” This creates a dedicated sub-account for converting paper bonds. You only need to do this once, and you can reuse it for future conversions.

3. Create Your Registration List Inside your Conversion Linked Account, go to ManageDirect and select “Create my registration list.” A registration reflects how the bond is owned — just you, you with a co-owner, or you with a beneficiary. You need to create a registration that matches exactly what’s printed on each paper bond. If you have bonds with different ownership arrangements, you’ll need a separate registration for each.

4. Enter Your Bond Information and Create a Manifest Add each bond’s details to your Conversion Cart, then select “Create a Manifest” to generate a printable summary of the bonds you’re submitting. This manifest will accompany your physical bonds in the mail.

5. Mail Your Paper Bonds Send the original paper bonds along with your printed manifest to the address specified by TreasuryDirect. You only pay the postage — there are no fees for the conversion itself. Consider sending bonds via certified mail or another tracked method, since lost bonds are extremely slow to replace.

6. Be Patient — Processing Takes Time This is the most important thing to know in 2026: TreasuryDirect is currently experiencing significant delays due to high volume and reduced federal staffing. Converting paper bonds by mail currently takes a minimum of six weeks, and some account actions requiring human review are taking considerably longer — in some cases, months. You can check your conversion status by logging into your Conversion Linked Account, going to ManageDirect, and selecting “View my manifests.” The conversion is complete when the value of your Conversion Linked Account increases.

One important note: Once bonds are converted to electronic form, they cannot be converted back into paper bonds.

A 2026 Change Worth Knowing: Certificate of Indebtedness

When TreasuryDirect converts a matured paper bond, the proceeds have traditionally flowed into a Certificate of Indebtedness (C of I) — a non-interest-bearing holding account inside TreasuryDirect that you could then transfer to your bank. Starting March 1, 2026, Certificates of Indebtedness will no longer be available as a payment destination in TreasuryDirect, and you will no longer be able to direct funds from your bank account into a C of I through BuyDirect. If you currently have funds sitting in a C of I, you can still redeem them to your linked bank account. Going forward, redemption proceeds will be directed straight to your bank account, which is actually simpler for most people.

Step 3: Cashing In Your Bonds

When you’re ready to redeem your bonds, you have a few options — but it’s important to know upfront that cashing paper bonds has become more complicated in recent years.

At a bank or credit union: Banks remain the most common place to cash paper savings bonds, but policies have tightened significantly due to fraud concerns. Many banks now only cash bonds for customers who have maintained an established account for at least 12 months, and some won’t cash them for non-customers at all. Many also impose dollar limits on how much can be redeemed at one time — in some cases as low as $200 in face value. Always call ahead to confirm your bank’s current policy before making a trip, and don’t assume that being a long-time customer guarantees unlimited redemption.

By mail through the Treasury: You can mail your paper bonds directly to the Treasury using FS Form 1522. If the total redemption value exceeds $1,000, your signature must be certified, typically by a bank officer or notary. Be aware that mailing bonds directly to the Treasury currently takes a minimum of six weeks to process under normal circumstances, and requests related to lost, stolen, or missing bonds can take seven months or more. Given current federal staffing levels, building in extra time is strongly advised.

Through TreasuryDirect: If you’ve already converted your bonds to electronic form, cashing them out is simple — log into your account and the funds transfer directly to your linked bank account with no dollar limits and no paperwork. This is one of the strongest reasons to consider converting first, especially if your bank has restrictive redemption policies.

Note: Historically, auto-redeemed bond proceeds were deposited into a Certificate of Indebtedness (C of I) holding account inside TreasuryDirect before being transferred to your bank. As of March 1, 2026, C of I is no longer available as a new payment destination, so proceeds from matured bonds should route directly to your linked bank account going forward.

Step 4: Safeguard Your Paper Bonds If You’re Keeping Them

If you prefer to hold onto your paper bonds rather than converting them, keeping them physically safe is critical. Here are a few practical steps:

1. Store them securely: Use a fireproof and waterproof safe at home, or consider a safe deposit box at a bank. Paper bonds that are lost, stolen, or destroyed are difficult and slow to replace — and with current Treasury processing times, a replacement request could take seven months or more.
2. Create digital backups: Scan or photograph each bond and save the images to secure cloud storage or an external hard drive. This won’t replace the bond itself, but will preserve the serial number and ownership details you’d need to request a replacement.
3. Track maturity dates carefully: Savings bonds stop earning interest after 30 years. Write down the maturity date of each bond or set a calendar reminder. There’s no benefit to holding a bond past its maturity date — it won’t keep growing, and inflation will quietly erode its value over time.
4. Replace lost or damaged bonds: If a bond is lost, stolen, or destroyed, you can request a replacement by submitting FS Form 1048 through TreasuryDirect. Given current processing delays, the sooner you file, the better.

Final Thoughts

Paper savings bonds may seem old-fashioned, but for many Americans they represent real, uncollected value sitting in a drawer or filing cabinet. Whether you decide to hold onto them, cash them in, or convert them to electronic form, the most important thing is to take action — especially for any bonds that have already reached their 30-year maturity and stopped earning interest.

Converting to TreasuryDirect remains the best long-term solution for most people. It eliminates physical risks, removes the growing hassle of bank redemption policies, and ensures you’ll never miss a maturity date. Just go in with realistic expectations about timing: in 2026, the Treasury is processing mail-in requests more slowly than in previous years, and that’s unlikely to improve quickly. Plan accordingly, send bonds via tracked mail, and check your account periodically rather than expecting a fast turnaround.

If you’re sitting on old paper bonds, there’s no better time than now to figure out what you have and what they’re worth. The TreasuryDirect Savings Bond Calculator can help you look up the current value of any paper bond using its series, denomination, and issue date.