Where and how to cash EE bonds

You can cash EE bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury's TreasuryDirect website. The easiest route depends on whether you have the physical bond or only the registration number.

If you have a paper bond in hand, walk into any bank or credit union and ask to redeem it. Bring the bond itself and a photo ID. The teller will verify the bond is genuine, check that you meet the holding period (see below), and give you the cash or deposit it into your account. This takes minutes. If you own the bond through TreasuryDirect (the online system where new bonds are issued), log into your account, select the bond, and request redemption. The money lands in your linked bank account within one to three business days.

If you have lost the physical bond but know the series, denomination, and issue date, the Treasury can help you locate it and process the redemption by mail, though this takes longer and requires more paperwork.

Key Takeaways

  • EE bonds held for less than five years carry a penalty of the last three months of interest, so cashing before five years costs you money.
  • Banks and credit unions will cash paper bonds on the spot if you bring the bond and photo ID, with no fee to you.
  • TreasuryDirect redemptions happen online and deposit to your bank account in one to three business days.
  • The bond's issue date determines when you can cash it without penalty — count forward five years from that date.

The five-year holding period and early redemption penalty

EE bonds cannot be cashed without a penalty until you have held them for at least five years. If you redeem before five years have passed, the Treasury withholds the last three months of interest you earned. This is not a flat fee — it is the actual interest that would have accumulated in those three months.

For example, if a bond has earned $50 in interest and you cash it at four years and six months, you lose three months of that interest. The exact amount depends on the bond's current interest rate and how much principal you have in it. After five years, you can cash the bond anytime without this penalty and receive all interest earned to date.

The five-year clock starts from the bond's issue date, which is printed on the bond itself or shown in your TreasuryDirect account. If you bought the bond in January 2020, you can cash it penalty-free starting in January 2025.

What you need to bring to a bank or credit union

For a paper bond, bring the bond itself and a government-issued photo ID such as a driver's license, passport, or state ID card. The teller will ask you to sign the back of the bond in their presence. If the bond is registered to someone else and you are cashing it on their behalf, you will need a power of attorney or the original owner's signature and ID.

If you are cashing a bond registered to a minor, the parent or legal guardian must be present with ID and must sign the bond. Some banks have additional internal rules about minor bonds, so call ahead if you are unsure.

Bring nothing else — banks do not charge a fee to redeem bonds, and you do not need to provide your Social Security number or any tax forms at the time of redemption. The Treasury reports the interest to the IRS, and you will receive a Form 1099-INT in January of the following year if the interest exceeds $10.

Cashing bonds through TreasuryDirect online

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Click on "Manage My Securities" and find the EE bond you want to redeem. Select the bond and choose "Redeem." You will see the current value, including all interest earned to date. Confirm the redemption, and the system will process it.

The money goes to the bank account you have linked to your TreasuryDirect account. This transfer takes one to three business days. You will receive a confirmation email once the redemption is complete. If you have not yet linked a bank account to TreasuryDirect, you can do so in the "Account" section before you redeem — this also takes a few minutes.

TreasuryDirect will not let you redeem a bond that is less than five years old, so the system will block the transaction if you try. This prevents accidental early redemption and the penalty that comes with it.

What happens if you lose a paper bond

If you have lost the physical bond but remember when you bought it and what denomination it was, contact the Treasury's Bureau of the Fiscal Service by mail. You will need to fill out Form PD F 1048 (Claim for Lost, Stolen, or Destroyed U.S. Savings Bonds) and provide as much information as you can: the series (EE), the denomination, the issue date, and the state where you bought it.

Send the form and any supporting documents (such as a receipt or bank statement showing the purchase) to the address listed on the form. The Treasury will search its records for the bond. If they find it, they will verify you are the registered owner and process the redemption by check. This process takes several months, so it is slower than walking into a bank with the bond in hand.

If you own the bond through TreasuryDirect, you do not have a physical bond to lose — your ownership is recorded in the online system. You can redeem it anytime by logging in.

Tax reporting when you cash a bond

The interest you earn on EE bonds is subject to federal income tax. You have two choices for when to report it: you can report the interest each year as it accrues (even though you have not cashed the bond yet), or you can wait and report all the interest in the year you actually redeem the bond.

Most people choose to report it all at redemption, which is simpler. When you cash the bond, the Treasury sends you a Form 1099-INT in January showing the total interest earned over the life of the bond. You report this on your tax return for that year. State and local taxes on bond interest vary by state — some states do not tax it at all, while others do.

The interest is not subject to Social Security tax or Medicare tax, and EE bonds are not subject to federal estate tax if you own them when you die (though state laws vary). If you are unsure how to report the interest, ask a tax professional or check the IRS website for Form 1099-INT instructions.

Cashing bonds registered to someone else or a trust

If a bond is registered in someone else's name, that person must be present at the bank with photo ID to cash it. They must sign the back of the bond. If the owner is deceased, the person with legal authority to act on their behalf (such as an executor or administrator of the estate) can redeem it, but they will need to bring a certified copy of the death certificate and proof of their authority, such as a letter from the probate court.

If the bond is registered to a trust, the trustee can redeem it by bringing the bond, photo ID, and a certified copy of the trust document. Some banks ask for additional documentation, so call ahead to confirm what they need.

Frequently Asked Questions

Can I cash an EE bond before five years without losing interest?

No. If you redeem before five years, the Treasury withholds the last three months of interest you earned. After five years, you can cash it anytime and keep all interest earned. The five-year period starts from the bond's issue date.

Do I have to pay a fee to cash a bond at my bank?

No. Banks and credit unions do not charge a fee to redeem U.S. savings bonds. The only cost is the three-month interest penalty if you cash before five years have passed.

What if I do not know the exact value of my bond?

The bank will look it up when you bring it in. You can also check the current value on the Treasury's Savings Bond Calculator at treasurydirect.gov before you go. If the bond is in TreasuryDirect, the system shows the current value when you log in.

Can I cash part of a bond and keep the rest?

No. EE bonds are all-or-nothing — you redeem the entire bond or none of it. You cannot split a bond or cash a portion of it.

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

At a bank or credit union, you get cash or a deposit on the spot. Through TreasuryDirect, the money reaches your linked bank account in one to three business days. If you mail in a claim for a lost bond, allow several months.