Where and how to cash a Series EE bond

You can cash a Series EE bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether your bond is paper or digital.

If you have a paper bond, take it to any bank or credit union where you have an account. Bring your bond and a government-issued ID. The institution will verify the bond's serial number, confirm it has reached maturity or that you meet the redemption terms, and deposit the cash into your account. Most banks process this same day or within one business day.

If you have a digital bond (purchased through TreasuryDirect), log into your TreasuryDirect account at treasurydirect.gov, select the bond you want to redeem, and request the redemption. The Treasury will deposit the money into your linked bank account within one to two business days.

Key Takeaways

  • Paper Series EE bonds can be cashed at any bank or credit union; digital bonds are redeemed through your TreasuryDirect account online.
  • You can redeem a Series EE bond anytime after one year, but redeeming before five years means you lose the last three months of interest.
  • The amount you receive is the face value plus all accrued interest up to the redemption date.
  • The Treasury will report the interest earned to the IRS on a Form 1099-INT if the interest exceeds $10 in a calendar year.

The one-year waiting period and the five-year penalty

You cannot redeem a Series EE bond during its first year of ownership. If you try to cash it before 12 months have passed, the bank or Treasury will reject the request.

After one year, you can redeem the bond at any time. However, if you redeem before the bond has been held for five years, you forfeit the last three months of interest. For example, if you redeem after three years and four months, you receive interest only through the three-year mark. This penalty does not apply once the bond reaches five years old.

Series EE bonds continue to earn interest for 30 years from the issue date, so there is no deadline to cash them in. Many people hold them longer than five years to avoid the interest penalty and to let the bond reach its full value.

What you will receive when you redeem

The amount you get is the face value of the bond plus all accrued interest up to the redemption date. A Series EE bond purchased at $50 face value will be worth more than $50 when you redeem it, because interest compounds semiannually.

The Treasury publishes the current redemption value for every Series EE bond on the TreasuryDirect website. If you have a paper bond, you can look up its value using the Savings Bond Calculator at treasurydirect.gov/BC. Enter the bond series, denomination, and issue date, and the calculator will show you the exact redemption value as of that day.

If you are redeeming a paper bond at a bank, the teller can also look up the current value before you complete the transaction, so you will know exactly what you are receiving.

Tax reporting and what happens to the interest

The interest you earn on a Series EE bond is subject to federal income tax. You have two choices about when to report it: you can report the interest each year as it accrues, or you can report all of it in the year you redeem the bond.

Most people choose to report it all at redemption, since that delays the tax bill. The Treasury will send you a Form 1099-INT if the interest earned in a calendar year exceeds $10. You report this on your federal tax return for that year.

Series EE bonds are exempt from state and local income tax, so you only owe federal tax on the interest. If you use the bond proceeds for may have access to education expenses, you may be able to exclude some or all of the interest from federal taxation under the Education Savings Bond Program, though this has income limits and other restrictions.

Redeeming a paper bond you inherited or received as a gift

If you inherited a Series EE bond or received one as a gift, you can redeem it the same way as any other paper bond: bring it to a bank with your ID. The one-year holding period and five-year interest penalty are based on when the original owner purchased the bond, not when you received it.

For example, if someone gave you a Series EE bond they bought eight years ago, you can redeem it immediately without losing any interest, because the original purchase date was more than five years ago. If the bond was purchased only two years ago, you would lose the last three months of interest if you redeem it now.

The person who originally purchased the bond is responsible for reporting the interest to the IRS, even if someone else redeems it. When you redeem an inherited or gifted bond, the bank will not issue a Form 1099-INT in your name.

What to do if your paper bond is lost, stolen, or damaged

If a paper Series EE bond is lost or stolen, contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov/RI/BLSFAQs.html. You will need to provide the bond's serial number, issue date, and denomination. The Treasury can issue a replacement bond, though the process takes several weeks.

If a paper bond is damaged but still readable, most banks will accept it for redemption. If it is too damaged to read, the bank may refuse it and direct you to contact the Treasury directly. Bring the damaged bond to the bank first; they can advise you on whether the Treasury needs to intervene.

Cashing multiple bonds at once

If you have several paper Series EE bonds to redeem, you can bring them all to the bank in one visit. Bring your ID and all the bonds. The bank will process each one separately and deposit the total into your account.

If you have digital bonds in TreasuryDirect, you can select multiple bonds and redeem them in a single transaction. Log into your account, check the boxes next to each bond you want to redeem, and submit the redemption request. The Treasury will deposit the combined amount into your bank account.

There is no limit to how many bonds you can redeem at once, though very large redemptions may trigger additional verification steps at your bank for fraud prevention.

Frequently Asked Questions

Can I cash a Series EE bond before one year has passed?

No. The Treasury does not allow redemption during the first 12 months of ownership. You must wait at least one year from the issue date before you can cash the bond.

What is the penalty for cashing before five years?

You lose the last three months of interest. If you redeem a bond that has been held for four years, you receive interest only through the three-year-nine-month mark. This penalty does not apply once the bond reaches five years old.

Do I have to redeem my entire bond, or can I cash part of it?

Series EE bonds are redeemed in full only. You cannot cash out a portion of a bond and keep the rest earning interest. You must redeem the entire bond or none of it.

How long does it take to get the money after I redeem?

Paper bonds redeemed at a bank typically deposit within one business day. Digital bonds redeemed through TreasuryDirect usually deposit within one to two business days. The exact timing depends on your bank's processing speed.

Will I owe taxes on the interest when I redeem?

Yes, the interest is subject to federal income tax. You report it on your tax return for the year you redeem the bond. The Treasury will send you a Form 1099-INT if the interest exceeds $10 in that calendar year.