Where and how to cash EE bonds

You can cash EE bonds at most banks and credit unions, or directly through the U.S. Treasury if you prefer to avoid a financial institution. The fastest route is usually your own bank — call ahead to confirm they handle savings bonds, then bring the bond itself plus a photo ID. Some banks charge a small fee (typically $5 to $10) to process the redemption, though many do not.

If your bank declines or you want to skip the fee, you can redeem through TreasuryDirect, the Treasury's online platform. You will need to set up an account at treasurydirect.gov, transfer the physical bond into your TreasuryDirect account (a process called "SmartExchange"), and then redeem it there. The entire process takes a few days to a week. There is no fee through TreasuryDirect.

A third option is to mail the bond directly to the Bureau of the Fiscal Service, the Treasury office that handles savings bonds. You will need to fill out Form PD 1522 (Statement Regarding Destruction of U.S. Savings Bonds) or Form FS 2046 (Application for Relief — Theft, Loss, or Destruction of U.S. Savings Bonds), depending on the bond's condition. Mail it to the address listed on the form. This route takes several weeks and is usually the slowest option.

Key Takeaways

  • Your own bank is usually the fastest way to cash an EE bond — bring the bond and photo ID, and expect the money within one business day.
  • TreasuryDirect (treasurydirect.gov) lets you redeem bonds online with no fee, though the process takes several days.
  • EE bonds must be at least one year old to cash in; if you redeem before five years, you lose the last three months of interest.
  • The Treasury will mail you a check or deposit funds directly to your bank account, depending on which method you choose.
  • If your bond is lost, stolen, or damaged, you can still redeem it by filing a claim with the Bureau of the Fiscal Service.

The one-year rule and the five-year penalty

You cannot cash an EE bond until it has been held for at least one year. If you try to redeem it before that time, the bank or TreasuryDirect will reject the request. This rule applies to all EE bonds regardless of when they were purchased or how much interest they have earned.

If you redeem an EE bond between one and five years after purchase, you will lose the last three months of interest. For example, if you bought a bond on January 15, 2023, and redeem it on March 1, 2024 (just over one year), you will receive interest only through December 15, 2023. This penalty does not apply if you hold the bond for five years or longer — at that point, you receive all accrued interest with no deduction.

The five-year window is one reason many people hold EE bonds longer than they initially planned. If you need the money before five years have passed, the three-month penalty is usually small enough that it does not matter. But if you are close to the five-year mark, waiting a few months can save you money.

What happens to the money after you redeem

When you redeem through a bank, you typically receive the money the same day or the next business day. The bank will give you cash, a check, or deposit the funds directly into your account — ask which options they offer before you go in.

If you redeem through TreasuryDirect, the Treasury deposits the money directly into the bank account linked to your TreasuryDirect profile. This takes three to five business days. You cannot receive a check from TreasuryDirect; direct deposit is the only method.

If you mail the bond to the Bureau of the Fiscal Service, they will send you a check by mail. This process takes four to six weeks from the date they receive your form. You can track the status of your claim by calling the Bureau at 844-284-2676.

Redeeming bonds held in someone else's name

If you own an EE bond that was issued in someone else's name (for example, a bond your parent bought for you), you can still redeem it, but the process depends on whose name is on the bond and whether that person is still living.

If the bond is in your name as the registered owner, you can redeem it at any bank or through TreasuryDirect using your own ID. If the bond is in someone else's name but you are listed as a co-owner, you will need that person's consent and ID to redeem it at a bank. If the original owner has died and you are the beneficiary, you will need to file a claim with the Bureau of the Fiscal Service and provide a death certificate.

Contact your bank or TreasuryDirect before you attempt to redeem a bond in someone else's name — they can tell you exactly what documents you will need to bring.

Reporting the redemption on your taxes

The interest you earn on an EE bond is subject to federal income tax. You do not pay tax when you redeem the bond; instead, you report the interest on your tax return for the year you cash it in.

When you redeem through a bank, you will not receive a tax form. You are responsible for calculating the interest yourself (the difference between what you paid for the bond and what you received when you cashed it) and reporting it on your return. If you redeem through TreasuryDirect or the Bureau of the Fiscal Service, you will receive a Form 1099-INT in January of the following year, which lists the interest you earned. Bring this form to your tax preparer or use it when filing your own return.

EE bond interest is not subject to state or local income tax in most states, though a few states do tax it. Check with your state's tax authority if you are unsure.

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

If your EE bond is physically damaged but still readable, most banks will still redeem it. Bring it in along with your ID and ask. If the bank refuses, you can redeem it through TreasuryDirect or file a claim with the Bureau of the Fiscal Service.

If your bond is lost or stolen, you cannot redeem it at a bank — you will need to file a claim with the Bureau of the Fiscal Service. Fill out Form FS 2046 (Application for Relief — Theft, Loss, or Destruction of U.S. Savings Bonds) and mail it along with any documentation you have (such as a purchase receipt or a statement from your bank showing the bond serial number). The Bureau will investigate and, if approved, issue a replacement bond or send you a check for the value.

This process takes several weeks to several months. If you need the money urgently, this is not the fastest route. Keep your bonds in a safe place — a safe deposit box, a home safe, or a fireproof container — to avoid this situation.

Frequently Asked Questions

Can I cash in an EE bond before one year?

No. EE bonds must be held for at least one year before you can redeem them. If you try to cash one in before that time, the bank or TreasuryDirect will reject the request. Plan ahead if you think you might need the money within the first year.

How much will I lose if I cash in my bond before five years?

You will lose the last three months of interest. For example, if your bond earned $100 in interest total, you will receive $75. The exact dollar amount depends on how much interest your bond has earned, which varies based on the purchase price and the current interest rate environment.

Do I need to report EE bond interest to the IRS?

Yes. The interest is taxable federal income. If you redeem through TreasuryDirect or the Bureau of the Fiscal Service, you will receive a Form 1099-INT. If you redeem at a bank, you must calculate and report the interest yourself on your tax return.

What if my bank charges a fee to redeem my bond?

You can avoid the fee by redeeming through TreasuryDirect instead. Set up an account at treasurydirect.gov, transfer your bond into it, and redeem it there. There is no fee, though the process takes a few days longer than going to a bank.

Can I cash in a bond that was issued in my child's name?

Only if your child consents and provides ID. If your child is a minor, you may be able to redeem it as the custodian, but you will need to bring documentation of your custodial relationship. Call your bank first to ask what documents they need.