You can redeem Series EE bonds at your bank, through the Treasury Department, or by mail — but you need to wait at least one year, and the government charges a penalty if you cash them before five years

Series EE bonds become redeemable (meaning you can turn them into cash) one year after you buy them. However, if you redeem them before they reach five years old, the Treasury Department withholds the last three months of interest as a penalty. After five years, you can cash them without penalty. The bond continues to earn interest for up to 30 years from the issue date, so you do not have to redeem it as soon as you are allowed to.

The actual process is straightforward: you present the bond to a financial institution or the Treasury, prove you own it, and receive the current redemption value. The redemption value is the original purchase price plus all the interest earned up to that point.

Key Takeaways

  • Series EE bonds can be cashed at your bank, credit union, or the Treasury Department's website at TreasuryDirect.gov starting one year after purchase.
  • Redeeming before five years old costs you the last three months of interest, so waiting until year five eliminates this penalty.
  • You will need the bond itself (if it is paper) or your TreasuryDirect login (if it is electronic), plus a form of identification.
  • The redemption value equals what you paid plus all interest earned, and you receive it as a check or direct deposit depending on where you redeem.

Redeeming at a bank or credit union

Most banks and credit unions will cash Series EE bonds for you, even if you do not have an account there. Bring the physical bond certificate and a government-issued ID such as a driver's license or passport. The teller will verify the bond's serial number and current value, then issue you a check or deposit the funds directly into your account if you have one there.

Call ahead before you go. Not every branch handles bond redemptions, and some larger institutions have a specific department that processes them. The process usually takes a few minutes if the bond is in good condition and the information matches your ID.

If your bond is damaged, torn, or the writing is faded, the bank may refuse it or send it to the Treasury Department for verification, which takes longer. Keep your bonds in a safe place — a safe deposit box, home safe, or fireproof container — to avoid this problem.

Redeeming through TreasuryDirect online

If you own electronic Series EE bonds purchased through TreasuryDirect.gov, you redeem them on the same website where you bought them. Log in to your account, navigate to the "Manage Securities" section, and select the bond you want to redeem. The site will show you the current redemption value and ask you to confirm.

Once you confirm, the Treasury Department deposits the funds into the bank account linked to your TreasuryDirect account within one to two business days. You do not need to mail anything or visit a physical location. This is the fastest method if your bonds are already electronic.

If you have forgotten your TreasuryDirect password, you can reset it using your email address or phone number. If you no longer have access to the email address you registered with, contact the Treasury Department's customer service line at 844-284-2676 to regain access to your account.

Redeeming by mail to the Treasury Department

You can mail paper Series EE bonds directly to the Treasury Department's Bureau of the Fiscal Service. Include a letter stating that you want to redeem the bonds, list the serial numbers and issue dates, and sign the letter. Attach a photocopy of your ID (not the original). Do not send the original ID.

Mail the package to: Bureau of the Fiscal Service, Parkersburg, WV 26106-1328. Include your name, address, and phone number so they can contact you if there are questions. The Treasury Department will send you a check to the address on file, usually within four to six weeks.

This method is slower than going to a bank or using TreasuryDirect, but it works if you cannot visit a bank in person or do not have an electronic account set up. Keep a copy of everything you mail for your records.

Understanding the five-year penalty and when it applies

If you redeem a Series EE bond before it reaches five years old, the Treasury withholds three months of interest. This is not a fee you pay separately — it is simply deducted from the interest you have earned. For example, if a bond has earned $50 in interest but you redeem it at year three, you receive the original purchase price plus $50 minus three months of interest (roughly $12.50, depending on the bond's rate).

The penalty does not apply if you wait until the bond is at least five years old. After that point, you can redeem it at any time and receive the full redemption value with no reduction. Many people hold their bonds longer than five years anyway because the bonds continue earning interest for 30 years total.

If you are in a financial emergency and need the money before five years have passed, the penalty is usually worth it. But if you can wait, the difference in what you receive can be meaningful, especially for larger bonds.

What happens to the interest for tax purposes

When you redeem a Series EE bond, you owe federal income tax on all the interest you earned, even though you did not receive it until redemption. The Treasury Department does not withhold taxes automatically — you report the interest on your federal tax return for the year you redeem the bond.

If you bought the bond with the intention of using it for education expenses (tuition, fees, books, room and board at an accredited school), you may be able to exclude some or all of the interest from your taxable income under the Education Savings Bond Program. You must meet specific income limits and other requirements. Consult a tax professional or the IRS website to determine if you may have access to.

Series EE bonds are exempt from state and local income tax, so you only owe federal tax on the interest.

What to do if you cannot find your bond or lost the certificate

If you own a paper Series EE bond but cannot locate the physical certificate, contact the Treasury Department's Bureau of the Fiscal Service. You will need to provide the bond's serial number, issue date, and denomination (the amount you paid for it). If you do not have this information, provide as much detail as you can remember about when and where you bought it.

The Treasury Department can search their records and issue a replacement certificate or process a redemption without the original if they can verify your ownership. This process takes longer than a standard redemption — usually several weeks — because they must confirm the bond's details and your identity.

If the bond was registered in your name when you bought it, ownership is easier to verify. If it was an unregistered bond (which was common for older bonds), the Treasury may require additional documentation.

Frequently Asked Questions

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

No. Series EE bonds cannot be redeemed until at least one year after the issue date. If you need the money sooner, you will have to find another source. After one year, you can redeem it, but you will lose three months of interest if you do so before the bond reaches five years old.

What is the current value of my Series EE bond?

You can check the current value on TreasuryDirect.gov if your bond is electronic. For paper bonds, the Treasury Department's website has a savings bond calculator where you enter the bond's series, denomination, and issue date. Your bank can also look up the value when you bring the bond in to redeem it.

Do I have to redeem the entire bond, or can I cash in just part of it?

Series EE bonds are redeemed as a whole — you cannot cash in a portion of one bond. If you own multiple bonds, you can choose which ones to redeem and leave others untouched.

What if the bank refuses to redeem my bond?

Banks can refuse bonds that are damaged, illegible, or have information that does not match your ID. If this happens, you can redeem it by mail to the Treasury Department or through TreasuryDirect if it is electronic. The Treasury Department can verify the bond even if a bank cannot read it.

Can someone else redeem my Series EE bond if I give them permission?

No. The person whose name is on the bond must present it for redemption along with their ID. If the bond is registered to you, only you can redeem it. If you are unable to redeem it yourself due to illness or incapacity, you may need to provide power of attorney documentation or have a guardian or executor handle it.