You can cash a Series EE bond at your bank, through the Treasury Department, or by mail — but only after you've held it for at least one year
A Series EE bond is a savings bond issued by the U.S. Treasury that earns interest over time. You cannot cash it immediately after buying it. The Treasury requires you to hold it for at least one year before you can redeem it for cash. If you cash it before five years have passed, you lose the last three months of interest as a penalty.
The amount you receive depends on how long you've held the bond and the interest rate it earned. You can find out exactly how much your bond is worth right now by using the Treasury's online calculator at treasurydirect.gov — you'll need the bond's serial number and issue date.
Key Takeaways
- Series EE bonds must be held for at least one year before you can cash them, and cashing before five years costs you three months of interest.
- Your bank can cash the bond if you have an account there, or you can redeem it directly through the Treasury Department online or by mail.
- You will owe federal income tax on the interest the bond earned, but not state or local tax, and you can choose to report it all at once or spread it across years.
- The Treasury's online calculator at treasurydirect.gov shows you the exact current value of your bond before you cash it.
Cashing your bond at a bank
The easiest route for most people is to walk into the bank where you have a checking or savings account and ask to redeem the bond. Bring the physical bond certificate and a form of photo ID. The bank will verify the bond, calculate its current value, and deposit the cash into your account on the spot or within one business day.
Not every bank will cash bonds — call ahead and ask whether your branch does. Some banks limit bond redemptions to customers with accounts in good standing, and a few do not offer the service at all. If your bank declines, you have two other options: the Treasury Department or the mail.
Redeeming through the Treasury Department online
If you own a Series EE bond issued after 2011, you can redeem it online through the Treasury's TreasuryDirect website. You'll need to set up a TreasuryDirect account if you don't already have one, then link your bank account for the deposit.
Log in to treasurydirect.gov, navigate to "Manage My Securities," find the bond you want to cash, and select the redemption option. The Treasury will deposit the money into your bank account within two business days. This method works only for bonds you own through a TreasuryDirect account — if you bought the bond in paper form from a bank or post office years ago, you cannot use this route.
Redeeming by mail if you have an older paper bond
If your Series EE bond is a paper certificate issued before 2012, or if you prefer not to use online banking, you can redeem it by mail. You'll need to fill out Form PD 1239, which you can download from treasurydirect.gov or request by calling the Treasury at 844-284-2676.
Sign the form, attach the bond certificate itself, and mail both to the address listed on the form. Include a copy of your photo ID. The Treasury will process your request and mail a check to your address within four to six weeks. Do not send the bond by regular mail — use certified mail with return receipt so you have proof of delivery.
Understanding the tax consequences
When you cash a Series EE bond, you owe federal income tax on all the interest it earned. You do not owe state or local tax on the interest, which is one advantage of Treasury bonds. The amount of federal tax you owe depends on your total income for the year and your tax bracket.
You have two choices about when to report the interest. You can report it all in the year you cash the bond, or you can report it spread across the years you actually owned the bond — this is called "deferring" the interest. Most people report it when they cash the bond because it's simpler. When you redeem the bond, the Treasury will send you a Form 1099-INT in January showing the interest earned, which you'll report on your tax return.
If you're cashing 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 — but this has strict rules about income limits and the type of education. Consult a tax professional if this applies to you.
What happens if you cash before one year or before five years
If you cash the bond before you've held it for one full year, the Treasury will not allow it. You must wait until the one-year anniversary of the issue date.
If you cash it after one year but before five years have passed, you lose the last three months of interest as a penalty. For example, if you've held the bond for three years and four months, you'll receive interest only through the three-year mark. This penalty exists to discourage early redemption, so it's worth waiting the full five years if you can.
Checking your bond's current value before you cash it
Before you redeem, use the Treasury's online calculator to see exactly what your bond is worth. Go to treasurydirect.gov, click "Calculate Bond Value," and enter the bond's series, denomination, issue date, and serial number. The calculator will show you the current redemption value and tell you whether you'll face the three-month interest penalty.
This step takes five minutes and removes any surprise about the amount you'll receive. If the value is lower than you expected because you're within the five-year window, you can decide whether to wait or cash it anyway.
Frequently Asked Questions
Can I cash a Series EE bond if I lost the certificate?
Yes. Contact the Treasury at 844-284-2676 and explain that the bond is lost or destroyed. They will ask for the bond's serial number, issue date, and denomination. You'll need to fill out a form and provide proof of ownership. The process takes several weeks, but you can recover the value.
What if the bond is in someone else's name?
If you're listed as the owner or co-owner on the bond, you can redeem it. If someone else owns it and you're just the beneficiary, you cannot cash it unless the owner has died or given you written permission. If the owner has died, you'll need a death certificate and may need to go through probate.
Do I have to cash the entire bond, or can I cash part of it?
Series EE bonds are issued in fixed denominations — $50, $100, $500, or $1,000 — and you must redeem the entire bond at once. You cannot split a single bond and cash half of it.
How long does it take to get the money after I redeem?
If you redeem at a bank in person, you'll have the cash the same day or within one business day. If you use TreasuryDirect online, the deposit takes two business days. If you mail the bond to the Treasury, expect four to six weeks.
Can I redeem a bond that's in a deceased person's estate?
Yes, but you'll need to provide a death certificate and proof that you have the legal right to act on behalf of the estate — usually a letter from the probate court or a copy of the will. Contact the Treasury at 844-284-2676 for the specific documents they need.