Where to cash your EE bond

You can cash an EE bond at most banks and credit unions, even if you did not buy it there. You do not need an account at that institution. Walk in with your bond and a form of ID, and the teller can process it on the spot — the whole thing usually takes 10 to 15 minutes.

If you prefer not to visit a branch, you can mail your bond to the U.S. Treasury's Bureau of the Fiscal Service. Send it with a letter stating your name, Social Security number, and the bond serial number. Include a copy of your ID. Mail it to the address printed on the back of your bond or check treasurydirect.gov for the current mailing address. Processing by mail takes 4 to 6 weeks.

Some banks charge a small fee to cash a savings bond — typically $5 to $10 — though many do not. Call ahead if you want to avoid a surprise charge. Credit unions often cash bonds for free if you are a member.

Key Takeaways

  • You can cash an EE bond at any bank or credit union by showing the bond and a photo ID, without needing an account there.
  • The bank pays you the current redemption value, which includes the original purchase price plus all interest earned to that date.
  • If you cash a bond before it reaches 20 years old, you lose the last three months of interest as a penalty.
  • The bank reports the transaction to the IRS, and you will owe federal income tax on the interest portion when you file your tax return.
  • You can also mail your bond to the Treasury, though it takes 4 to 6 weeks and you should include a copy of your ID.

What you will receive when you cash

The bank pays you the redemption value of your bond — the amount printed on the bond plus all the interest it has earned since you bought it. This is not a choice. You cannot negotiate or ask for a different amount; the redemption value is set by the Treasury and does not change.

You receive the full redemption value only if your bond is at least 20 years old. If you cash it before that, you forfeit the last three months of interest. So if your bond is 19 years and 11 months old, you lose three months of earnings. This penalty exists to discourage early redemption and is built into the bond terms when you purchase it.

The bank gives you the money in whatever form you request — cash, a check, or a deposit to your account if you have one there. If you take cash, the bank may ask you to sign a form confirming you received it.

The three-month interest penalty explained

EE bonds are designed to be held for 20 years. To discourage cashing them earlier, the Treasury withholds three months of interest if you redeem before the 20-year mark. This is not a fee the bank charges — it is a rule built into the bond itself.

The penalty applies no matter how old your bond is, as long as it is under 20 years. A bond that is one year old and a bond that is 19 years old both lose three months of interest. Once your bond reaches 20 years, you can cash it without any penalty.

You can check your bond's exact age by looking at the issue date printed on it. Count forward 20 years from that date. If today is before that date, the three-month penalty applies.

Tax reporting when you cash

When you cash an EE bond, the bank reports the transaction to the IRS using a Form 1099-INT. This form shows the total interest you earned on that bond. You will receive a copy in the mail, and the IRS receives one as well.

You owe federal income tax on the interest portion — not on the original amount you paid. If you bought a bond for $50 and it is now worth $75, you owe tax on the $25 in interest. The tax rate depends on your overall income and tax bracket; the IRS does not set a flat rate for bond interest.

You do not pay tax when you cash the bond. Instead, you report the interest on your federal tax return for that year. If you cash multiple bonds in the same year, you add up all the interest and report the total. State income tax rules vary; some states tax bond interest and some do not.

What to bring to the bank

Bring the physical bond itself and a government-issued photo ID. A driver's license, passport, or state ID card all work. The teller will check that the ID matches the name on the bond.

If the bond is registered in someone else's name, that person must be present with their ID, or you will need a power of attorney document signed by them. If the bond is in a deceased person's name, you will need to bring a death certificate and proof that you are authorized to handle their estate — usually a will or court document.

You do not need to bring any paperwork about when you bought the bond or how much you paid for it. The bank has access to all that information through the Treasury's system.

Cashing bonds registered to a minor

If the bond is registered in a child's name, a parent or legal guardian can cash it. Bring the bond, the adult's photo ID, and the child's birth certificate or Social Security card to prove the relationship. The child does not need to be present.

The parent or guardian receives the money, but the interest is still reported to the IRS under the child's Social Security number. This matters for taxes: if the child has little or no other income, the interest may not be taxable, or it may be taxed at a lower rate. Consult a tax professional if you are unsure how to report it.

Cashing bonds held in a trust or estate

If a bond is registered in the name of a trust, bring the bond and a certified copy of the trust document. The trustee's photo ID is also required. The bank will verify that the person presenting the bond is authorized to act as trustee.

For a bond in a deceased person's estate, bring the bond, a certified death certificate, and a court document showing you have authority over the estate — such as letters testamentary or letters of administration. These documents come from the probate court in the county where the person died. The process takes longer than a standard redemption because the bank must verify the documents.

Frequently Asked Questions

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

No. EE bonds are all-or-nothing. When you cash a bond, you redeem the entire thing. You cannot split it or cash half of it. If you want to keep some of your money in a bond, you must not cash it.

What happens if I lose my bond?

Contact the Treasury's Bureau of the Fiscal Service and report it lost or stolen. You will need to provide the bond serial number, issue date, and denomination. The Treasury can issue a replacement, though the process takes several weeks. You cannot cash a bond you do not have in your possession.

Do I have to cash my bond when it reaches 20 years old?

No. You can hold an EE bond indefinitely. It will continue to earn interest for up to 30 years from the issue date. After 30 years, it stops earning interest, and at that point there is no reason to keep it — you should cash it.

Can I cash a bond at an ATM or online?

No. You must cash a bond in person at a bank or credit union branch, or by mailing it to the Treasury. You cannot redeem it through an ATM, online banking, or a mobile app.

What if the bank refuses to cash my bond?

This is rare, but if a bank declines, you can mail the bond directly to the Treasury. Some banks decline because they are unfamiliar with the process or have internal policies against it. A credit union is often more willing. You can also call the Treasury's customer service line for guidance on your specific situation.