Where and how to cash an EE bond

You can cash an EE savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether you have the physical bond or own it electronically.

If you have a paper bond, take it to any bank or credit union where you have an account. Bring your ID and the bond itself. The institution will verify the bond's serial number and current value, then deposit the cash into your account or give it to you in person. Most banks do this same-day or within one business day.

If your bond is registered electronically through TreasuryDirect (the Treasury's online system), you log into your account, select the bond you want to redeem, and request the redemption. The Treasury deposits the money into your linked bank account within one to three business days.

Key Takeaways

  • Paper EE bonds can be cashed at any bank or credit union; bring your ID and the physical bond.
  • Electronic bonds held in TreasuryDirect are redeemed by logging in, selecting the bond, and requesting redemption online.
  • You must wait at least one year from purchase before cashing an EE bond, or you lose the last three months of interest.
  • The Treasury deposits redemption money into your bank account within one to three business days for electronic bonds.
  • If you cash before five years have passed, you forfeit the final three months of accrued interest as a penalty.

The one-year and five-year rules

EE bonds have two important timing rules. You cannot cash the bond at all during the first year you own it. If you try, the bank or Treasury will refuse the redemption.

If you cash the bond between one year and five years after purchase, you lose the last three months of interest. For example, if you bought a bond on March 15, 2023, and cash it on June 1, 2024 (just over one year), you receive the value as of March 15, 2024, not June 1, 2024. After five years have passed, you keep all accrued interest no matter when you redeem.

What you need to bring or provide

For a paper bond at a bank or credit union, bring a government-issued photo ID (driver's license, passport, or state ID) and the bond itself. Some institutions may ask for your Social Security number or account number if you are depositing into an existing account.

For an electronic bond through TreasuryDirect, you need your login credentials and a linked bank account where the Treasury can deposit the funds. If you have not set up a bank account link yet, you can add one during the redemption process.

How the Treasury calculates what you receive

An EE bond earns interest monthly, but the Treasury only credits it every six months. The bond's value grows based on a fixed rate set when you purchased it, plus a variable rate that changes every six months.

When you redeem, you receive the face value of the bond plus all accrued interest up to the redemption date (minus the three-month penalty if you are cashing before five years). The bank or Treasury will show you the exact amount before you complete the transaction, so you know what to expect.

Tax reporting when you cash

The interest you earn on an EE bond is subject to federal income tax, but not state or local income tax. You do not pay tax when you cash the bond — you report the interest on your tax return for the year you redeem it.

If the bond was issued after 1989 and you used it to pay for higher education expenses, you may be able to exclude some or all of the interest from your taxable income. This is called the Education Savings Bond Program. You will need to report the redemption on Form 8815 when you file your taxes.

The bank or Treasury does not send you a 1099 form automatically. Keep your own records of the purchase price and redemption amount so you can calculate the interest earned.

What to do if you lost the paper bond

If you have a paper EE bond and cannot find it, contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov. You will need to provide the bond's serial number, issue date, and denomination if you have them. The Treasury can search its records and may issue a replacement or process a claim.

This process takes longer than a standard redemption — typically several weeks — because the Treasury must verify that the bond has not already been cashed and confirm your ownership. Have your purchase documentation ready.

Cashing bonds owned by someone else

If you are the named owner on the bond, you can cash it. If the bond is registered to someone else and they have died, you will need to provide a death certificate and proof that you are the beneficiary or executor of their estate. Different banks have different requirements for this documentation.

If the bond is in a minor's name, a parent or legal guardian can cash it, but some institutions require court documentation proving guardianship. Call the bank or credit union ahead of time to ask what they need.

Frequently Asked Questions

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

No. The Treasury will not allow you to redeem an EE bond during the first 12 months of ownership. You must wait at least one year from the issue date.

What happens if I cash my bond after two years instead of five?

You lose the last three months of accrued interest. If your bond was issued on January 15, 2022, and you cash it on March 1, 2024, you receive the value as of December 15, 2023, not March 1, 2024. After five years have passed, this penalty no longer applies.

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

EE bonds are all-or-nothing. You cannot redeem half a bond or a portion of it. When you redeem, you cash the entire bond and receive its full current value.

How long does it take to get my money after I request a redemption?

For paper bonds at a bank, usually one business day. For electronic bonds through TreasuryDirect, one to three business days. The exact timing depends on your bank's processing speed and whether you request the redemption on a business day or weekend.

Will the bank charge me a fee to cash my EE bond?

Most banks do not charge a fee to redeem a savings bond for customers who have an account there. Some may charge a small fee if you do not have an account with them. Call ahead to ask.