How to cash an EE bond

You can cash an EE bond at most banks and credit unions, or directly through the U.S. Department of the Treasury's TreasuryDirect website. The bank or credit union route is faster if you have an account there — you walk in with the bond, they verify it, and you get paid the same day. TreasuryDirect takes a few business days but works if you don't have a bank relationship or prefer to handle it online. You'll need the physical bond certificate (or proof you own it in TreasuryDirect), and you must be the registered owner or have legal authority to cash it on someone else's behalf.

The amount you receive depends on how long you've held the bond. EE bonds earn interest monthly, and that interest compounds — meaning you earn interest on your interest. The longer you hold the bond, the more it's worth. The Treasury publishes the current value of every EE bond issued, so you can look up exactly what yours is worth before you cash it.

Key Takeaways

  • Banks and credit unions cash EE bonds the same day if you have an account; TreasuryDirect processes redemptions in a few business days.
  • You need the physical bond certificate or proof of ownership in TreasuryDirect, plus a government-issued ID.
  • The value of your bond depends on its issue date and how long you've held it; the Treasury website shows the current value of any bond.
  • If you cash a bond before it reaches 20 years old, you lose the last three months of interest as a penalty.
  • The bank or credit union will report the interest you earned to the IRS on a Form 1099-INT, and you'll owe federal income tax on that interest.

Cashing a physical bond at a bank or credit union

Bring the bond certificate itself, a government-issued ID (driver's license, passport, or state ID), and your account number if you have one at that institution. The teller will examine the bond to confirm it's genuine, verify that you're the registered owner, and look up its current value using the Treasury's redemption tables. This usually takes 10 to 15 minutes.

The bank will then deposit the cash into your account or give it to you in person, depending on the amount and the bank's policy. Some banks have limits on how much cash they'll hand over in a single transaction, so if you're cashing a large bond, ask ahead whether they'll need a few days to have that much cash on hand. Credit unions typically follow the same process, though procedures vary slightly by institution.

Not every bank cashes savings bonds — some stopped offering the service years ago. Call ahead or check the bank's website before you go. If your bank won't do it, the next closest option is usually another bank in the same town, or you can use TreasuryDirect instead.

Redeeming a bond through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the EE bond you want to redeem. The system will show you its current value and ask you to confirm the redemption. Once you submit, the Treasury processes the request and deposits the money into the bank account you have on file with TreasuryDirect — this usually takes three to five business days.

You'll need to have set up a bank account with TreasuryDirect when you created your account. If you haven't done that yet, you can add one in your account settings before you redeem. The Treasury only deposits to U.S. bank accounts, so you can't have the money sent to an international bank.

TreasuryDirect is the only way to redeem bonds that exist only in electronic form — bonds you bought directly through the website rather than as physical certificates. If you have a physical bond, you can still use TreasuryDirect if you first register it in your account, though most people find it simpler to just take the certificate to a bank.

What happens if you cash a bond early

If you cash an EE bond before it has been held for 20 years, you forfeit the last three months of interest. This is a penalty built into the bond terms, not a fee the bank charges. So if you've held the bond for 19 years and 11 months, you'll receive the value as of 19 years and 9 months instead.

This penalty exists to discourage early redemption and protect the Treasury's cash flow. It's not negotiable — no bank can waive it, and TreasuryDirect won't either. If you're close to the 20-year mark, it's worth waiting those last few months to avoid losing three months of accumulated interest.

Bonds held for less than five years have an additional penalty: you lose the last three months of interest, and you also forfeit one month of interest for each year you've held the bond. So a bond held for two years costs you three months of interest (the standard penalty) plus two additional months. This steeper penalty applies only to bonds held for less than five years.

Understanding the tax consequences

When you cash an EE bond, you owe federal income tax on all the interest the bond earned from the day you bought it until the day you cashed it. The bank or TreasuryDirect will send you a Form 1099-INT showing the amount of interest, and you'll report that on your federal tax return for the year you cashed the bond.

You do not owe tax on the original amount you paid for the bond — only on the interest it earned. If you bought a $50 EE bond for $25 and cashed it for $75, you owe tax on the $50 of interest, not the full $75.

State and local income taxes vary by location. Some states don't tax bond interest at all; others tax it the same way the federal government does. Check your state's tax rules or ask a tax professional if you're unsure. EE bonds are exempt from state and local taxes if you use the proceeds to pay for may have access to education expenses in the same year you redeem the bond, but that's a separate rule with specific requirements.

Finding the current value of your bond

The Treasury publishes the value of every EE bond based on its issue date. Go to treasurydirect.gov and use the "Savings Bond Calculator" tool. Enter the bond's series (always EE for these bonds), the issue date, and the denomination (the amount printed on the certificate). The calculator will show you the current value and the amount of interest earned.

You can also look up the value manually using the Treasury's redemption value tables, which are updated monthly. The tables are organized by issue date and show the value for each month the bond has been held. If you have multiple bonds, the calculator is much faster than looking them up one by one.

If your bond is registered in TreasuryDirect, you can see its current value by logging into your account — no calculator needed. The system updates values monthly on the first business day.

What to do if you've lost the bond certificate

If you have a physical EE bond but can't find the certificate, you can still redeem it. Contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov to file a claim for a lost or destroyed bond. You'll need to provide the bond's series, denomination, and issue date — information that may be on old purchase receipts, bank statements, or gift documentation.

The Treasury will verify that the bond was issued and that you're the registered owner, then issue a replacement certificate or credit the value to a TreasuryDirect account. This process takes several weeks. In the meantime, you cannot redeem the bond, so if you need the money urgently, this route won't help.

If the bond was registered to someone else and you have legal authority to act on their behalf (as a guardian, executor, or power of attorney), you'll need to provide documentation of that authority along with your claim.

Frequently Asked Questions

Can I cash an EE bond at any bank?

Not every bank cashes savings bonds anymore. Many stopped offering the service to reduce operational costs. Call ahead or check the bank's website before you go. If your bank won't do it, try another bank in your area or use TreasuryDirect instead.

What if the bond is registered to someone who has died?

If the bond is in the deceased person's name only, you'll need to provide a death certificate and proof that you have legal authority to handle their estate — usually a will, court order, or letter of administration from the probate court. The bank or Treasury will then release the funds to you or the estate.

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

You must cash the entire bond. You cannot redeem a portion of it and keep the rest earning interest. If you need only part of the money, you'll have to decide whether the interest you'll earn by holding it longer is worth more than the cash you need now.

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

The Treasury typically deposits the funds within three to five business days of your redemption request. Weekends and federal holidays don't count toward this timeline. Your bank may take an additional day to process the incoming deposit, so plan for up to a week total.

Will I owe state taxes on the interest?

It depends on your state. Some states don't tax bond interest at all; others tax it as ordinary income. Check your state's tax agency website or ask a tax professional. You may also be able to avoid state tax if you use the bond proceeds for may have access to education expenses in the same year you redeem it.