How to Cash in Your EE Series Bonds

Where and how to redeem EE bonds

You can cash EE Series bonds at most banks and credit unions, or directly through TreasuryDirect online. Banks and credit unions usually process the redemption in person within a few minutes, though some require you to have an account with them. TreasuryDirect lets you redeem bonds without leaving home, but the money takes three to five business days to reach your bank account.

The simplest route depends on whether you have the physical bond or only a record of it. If you hold a paper bond, a bank or credit union is faster. If your bonds are registered in TreasuryDirect (the digital system the U.S. Treasury runs), you must redeem them through TreasuryDirect itself — banks cannot process digital bonds.

You do not need to wait until maturity to cash an EE bond. You can redeem one as soon as one year after purchase, though the Treasury charges a penalty if you cash it before five years have passed. The penalty is the last three months of interest.

Key Takeaways

• Paper EE bonds can be cashed at most banks and credit unions in person; digital bonds held in TreasuryDirect must be redeemed through the TreasuryDirect website.
• Cashing a bond before five years have passed costs you the last three months of interest as a penalty.
• You need the bond itself (if paper) or your TreasuryDirect login; banks may also ask for a photo ID and proof that you own the bond.
• Paper bonds redeemed at a bank are processed immediately, while TreasuryDirect redemptions take three to five business days.

Redeeming paper EE bonds at a bank or credit union

Bring the physical bond and a photo ID to any bank or credit union. Not all branches handle bond redemptions, so call ahead to confirm the location you plan to visit offers the service. Some banks limit redemptions to account holders; others will cash bonds for anyone.

The teller will inspect the bond to verify the serial number and issue date, then confirm the current value using Treasury tables. If the bond is registered in your name alone, you can cash it. If it is registered to two people (such as "John Smith or Jane Smith"), either person can redeem it. If it says "and" instead of "or", both owners must be present or one must have a power of attorney document.

You will receive the cash or a check on the spot. The bank deducts the early-redemption penalty automatically if you are cashing the bond before the five-year mark. Keep the receipt — it documents the redemption date and amount for your records.

Redeeming digital bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to "Manage My Securities" and select the EE bond you want to redeem. Click the redemption option and confirm the transaction.

TreasuryDirect will deposit the funds into the bank account you have on file with them. This is the same account you used to purchase the bonds or that you set up for other Treasury transactions. If you need to change the account before redeeming, update it in your account settings at least one business day before you submit the redemption request.

The money typically arrives within three to five business days. If you need the funds faster, redeeming a paper bond at a bank is your only option for immediate access.

What happens to the interest when you redeem early

EE bonds earn interest every month. If you redeem before five years have passed, the Treasury withholds the last three months of interest as a penalty. For example, if a bond is worth $1,050 and you have owned it for three years, you lose the interest it would have earned in months 34, 35, and 36 — you receive roughly $1,000 instead.

After five years, there is no penalty. You receive the full current value, including all interest earned to date. The bond continues to earn interest for up to 30 years from the issue date, so you can hold it longer if you choose.

The interest you receive is subject to federal income tax in the year you redeem the bond. You do not pay state or local income tax on EE bond interest. If you used the bond to pay for education expenses, you may be able to exclude some or all of the interest from your taxable income under the Education Savings Bond Program — consult a tax professional about whether you may have access to.

Documents and information you will need

For a paper bond at a bank: bring the bond itself and a photo ID. Some banks ask for a second form of identification or proof of address. If someone else registered the bond to you as a gift, bring documentation showing the transfer if the bank requests it.

For TreasuryDirect: you need your username and password. If you have forgotten your password, use the "Forgot Password" link on the login page and follow the reset process, which involves answering security questions or receiving a code via email. Make sure the bank account information in your TreasuryDirect profile is current before you redeem.

If you are redeeming a bond on behalf of someone else (as a guardian, executor, or power of attorney), bring the legal document that grants you that authority, along with your ID and the bond owner's ID if possible.

What to do if you have lost a paper bond

Contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov and select "Lost, Stolen, or Destroyed Securities." You will need the bond's serial number, issue date, and face value. The Treasury can search its records and issue a replacement or process a redemption without the physical bond.

The process takes several weeks. In the meantime, the bond continues to earn interest. Once the Treasury confirms ownership, it will either mail you a replacement bond or deposit the redemption value into your bank account, depending on what you request.

Frequently Asked Questions

Can I cash an EE bond before one year has passed?

No. The Treasury requires you to hold an EE bond for at least one year before redeeming it. If you need the money sooner, you cannot access it without breaking the bond's terms.

Do I have to pay taxes when I redeem an EE bond?

You will owe federal income tax on the interest the bond earned, but not on the original amount you invested. The tax is due in the year you redeem the bond. You do not pay state or local income tax on EE bond interest.

What if the bank says they cannot cash my EE bond?

Some banks have stopped offering bond redemption services. If your bank declines, try another bank or credit union in your area, or redeem the bond through TreasuryDirect online instead. You can also mail the bond to the Treasury, though this is slower.

Can I redeem part of an EE bond?

No. EE bonds are redeemed in full. You cannot cash out a portion of a bond and keep the rest earning interest. If you own multiple bonds, you can redeem some and keep others.

How do I know what my EE bond is worth right now?

Visit treasurydirect.gov and use the Savings Bond Calculator. Enter the bond's series, denomination, issue date, and the month and year you want to check. The calculator shows the current value and the interest earned to date.