We believe the answer depends on whether you bank is a savings bond paying agent.

A bank becomes a “paying agent” by contacting the Federal Reserve’s Treasury Retail Securities and filling out an application agreement. As a paying agent, a bank must cash savings bonds for both customers and non-customers, provided that the bank is able to verify the bond is authentic and eligible to be redeemed, and the individual provides acceptable identification. A bank can terminate its status as a paying agent at any time. We are not aware of any requirement to cash bonds for customers or non-customers if your bank is not a paying agent.

We note, though, that even for paying agents, cashing bonds for certain individuals is optional, including “a parent of a minor, a beneficiary, or, in certain circumstances, a legal representative, such as a trustee, guardian, executor, or other fiduciary representative.”

For resources related to our guidance, please see:

• FRB Services, Savings Bond Brochure (“[Q]ualified paying agents shall redeem eligible savings bonds, savings stamps and savings notes for both customers and non-customers in accordance with the guidelines in The Guide to Cashing Savings Bonds.”)

• FRB Services, Savings Bond Brochure (“To become a paying agent, simply contact the TRS site. You will receive Treasury Circulars that outline your responsibilities as a paying agent and the Paying Agent Application-Agreement (PD F 3880) to complete and stamp with your institution’s seal. Upon receipt, the TRS site will send the supplies you need to begin redeeming savings bonds.”)

• FRB Services, Savings Bond Brochure (“Am I allowed to terminate my agent status at will? Yes. If your institution decides to no longer redeem savings bonds, please notify the TRS site in writing on your institution’s letterhead.”)

• U.S. Department of the Treasury, The Guide to Cashing Savings Bonds  (“Your financial institution’s basic responsibilities. Required: Cash savings bonds or notes that are eligible for payment for a customer with the proper identification.”)

• U.S. Department of the Treasury, The Guide to Cashing Savings Bonds  (“Your financial institution’s basic responsibilities . . . Optional: Your financial institution may, but isn’t required to, cash bonds or notes presented by a parent of a minor, a beneficiary, or, in certain circumstances, a legal representative, such as a trustee, guardian, executor, or other fiduciary representative. If you choose to not cash these bonds, you may refer the customer to the Treasury Retail Securities Site at FRB Minneapolis or you may forward the transaction to Minneapolis on behalf of the customer.”)