Where and how to redeem EE bonds
You can cash EE bonds at most banks and credit unions, or directly through the U.S. Treasury. The bank route is fastest if you have an account there — you walk in with the bond, show ID, and the teller processes it on the spot, usually within minutes. You do not need to have held the account for any length of time.
If you do not have a bank relationship or prefer to avoid it, you can redeem bonds through TreasuryDirect, the federal government's online bond platform. You will need to set up a TreasuryDirect account, link a bank account for the deposit, and submit images or the physical bonds. This route takes longer — typically five to seven business days — but works from home and leaves a clear digital record.
A third option is your employer's payroll department if your company runs a savings bond program. Some still do, though this is less common than it once was. Ask your HR or benefits office whether they handle redemptions.
Key Takeaways
- Banks and credit unions cash EE bonds in person the same day if you bring the physical bond and a photo ID.
- You must hold an EE bond for at least one year before you can redeem it, and you will lose the last three months of interest if you cash it before five years.
- TreasuryDirect redemptions take five to seven business days but require no bank account and create a permanent record.
- The IRS taxes the interest you earned on the bond in the year you redeem it, unless you rolled it into a may have access to education savings plan.
Timing rules: the one-year and five-year marks
EE bonds have two critical dates. You cannot redeem an EE bond until you have owned it for at least one year. If you try to cash it before that, the bank or TreasuryDirect will refuse.
The second rule costs money. If you redeem an EE bond before it has been held for five years, you forfeit the last three months of interest. For example, if you cash a bond at year 3, you receive interest only through year 2 and nine months. This penalty applies even if the bond has matured and stopped earning interest.
After five years, you can redeem without penalty at any time. Many people hold EE bonds well beyond maturity because there is no downside to waiting, and the bonds continue to earn interest for up to 30 years from issue.
What documents you need
For in-person redemption at a bank or credit union, bring the physical bond itself and a government-issued photo ID — a driver's license, passport, or state ID card. That is all. The teller will verify the bond is genuine, confirm you meet the holding period, and process the cash or deposit.
For TreasuryDirect redemption, you will need to upload a photo or scan of the front and back of the bond, or the bond itself if you mail it. You will also need your Social Security number and the bank account information where you want the money deposited. Set up your TreasuryDirect account before you start the redemption process.
How the IRS taxes the interest
The interest you earned on an EE bond is subject to federal income tax. You do not pay tax when the bond matures or when you redeem it — you pay tax in the year you actually cash it in. The bank or TreasuryDirect will not withhold the tax automatically; you report the interest on your tax return.
If you cashed multiple bonds in the same year, add up all the interest and report the total. The amount appears on your 1099-INT form if the interest exceeded $10 in that calendar year.
One exception exists: if you used the bond proceeds to pay for may have access to education expenses in the same year, you may be able to exclude some or all of the interest from taxable income under the Education Savings Bond Program. This requires filing Form 8815 with your tax return and meeting specific income limits. The rules are complex, so consult a tax professional if this applies to you.
Cashing bonds held in a minor's name
If the bond is registered in a child's name, a parent or legal guardian must present it for redemption along with proof of guardianship. A birth certificate usually suffices. The interest is taxed to the child, not the parent, which can be advantageous if the child has little other income.
If the bond is registered in the parent's name but intended for the child, the parent redeems it and reports the interest. The Education Savings Bond exclusion still applies if the proceeds go to the child's education in the same year.
What happens if the bond is lost or damaged
A torn or water-damaged bond can still be redeemed if enough of it is legible to verify the series, denomination, and serial number. Bring it to your bank and ask. Most will process it.
If a bond is lost or stolen, contact TreasuryDirect or the bank where you originally purchased it. You will need the bond's series letter, denomination, and serial number if you have it. TreasuryDirect can issue a replacement, but the process takes weeks and requires documentation of the loss. A police report helps but is not always required.
Comparing your redemption options
| Method | Speed | What You Need | Best For |
|---|---|---|---|
| Bank or credit union | Same day | Physical bond, photo ID | Quick cash, no online account needed |
| TreasuryDirect | 5–7 business days | TreasuryDirect account, bond images or physical bond, bank account | Remote redemption, digital record, no bank account required |
| Employer payroll | Varies | Bond, employer participation | Employees whose company still offers the program |
Frequently Asked Questions
Can I cash an EE bond before one year is up?
No. EE bonds have a one-year holding requirement. You cannot redeem them before that date, and no bank or TreasuryDirect will process an early redemption. If you need the money sooner, you will have to wait or explore other options.
What if I cash my bond before five years — do I lose all the interest?
No, only the last three months. If you redeem at year 3, you receive interest through year 2 and nine months. The penalty is fixed at three months' interest, regardless of when you cash it before the five-year mark.
Do I have to pay state income tax on the interest?
Federal interest is always taxable. State tax depends on your state's rules. Most states tax savings bond interest the same way the IRS does, but a few exempt it. Check your state's tax authority website or ask a tax professional.
Can I redeem a bond online without going to a bank?
Yes, through TreasuryDirect. You set up an account, upload images of the bond or mail the physical bond, and the money deposits to your linked bank account in five to seven business days. You never have to visit a bank.
What if the bank says they cannot cash my bond?
Some smaller banks do not redeem savings bonds. If your bank declines, try another bank in your area, or use TreasuryDirect. You can also contact the Federal Reserve Bank in your region — they redeem bonds for people who have no other option, though the process is slower.