You can cash in a Series EE bond at your bank, through the Treasury Department, or by mail — but the method depends on whether the bond is paper or digital

A Series EE bond is a savings bond issued by the U.S. Treasury that you can redeem for cash once it reaches a certain age. The simplest route is usually your bank: walk in with the bond and your ID, and most banks will cash it the same day. If you own a digital bond (purchased through TreasuryDirect), you redeem it online without leaving home. Paper bonds can also be redeemed by mail if your bank won't take them, though this takes longer.

The catch is that Series EE bonds have a holding period — you cannot cash them in until at least one year has passed since purchase. If you cash in a bond before five years have passed, you lose the last three months of interest as a penalty. After five years, you can cash in without penalty. Most people wait at least five years to avoid losing money.

Key Takeaways

  • Series EE bonds must be held for at least one year before you can cash them in, and you lose three months of interest if you redeem before five years.
  • Your bank is the fastest way to cash a paper bond — bring the bond and a photo ID, and most will process it the same day.
  • Digital bonds purchased through TreasuryDirect can be redeemed online in your account without visiting a bank.
  • If your bank refuses a paper bond, you can mail it to the Treasury Department with a form, though this takes several weeks.
  • You will owe federal income tax on the interest your bond earned, but not state or local tax.

Cashing a paper Series EE bond at your bank

Bring the physical bond and a government-issued photo ID to any bank branch. You do not have to be a customer of that bank — most will cash Treasury bonds for anyone. Tell the teller you want to redeem the bond. They will verify the bond's serial number and current value, then give you the cash or deposit it into an account you specify.

The teller will ask you to sign the back of the bond in their presence. This is a standard anti-fraud step. The entire process usually takes 10 to 15 minutes. You will receive a receipt showing the redemption amount and the date.

If a bank refuses to cash your bond, it is usually because the bond is damaged, the serial number is unclear, or the bank has stopped offering this service. Call ahead to confirm the branch handles bond redemptions before you go.

Redeeming a digital Series EE bond through TreasuryDirect

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

The Treasury Department will deposit the cash into the bank account you have on file with TreasuryDirect within two business days. You do not need to visit a bank or mail anything. This is the fastest method if you own digital bonds.

If you have forgotten your TreasuryDirect login, you can reset it on the website. If you do not have a TreasuryDirect account but own a digital bond, contact the Treasury Department at 844-284-2676 to verify your identity and regain access.

Mailing a paper bond to the Treasury Department

If your bank will not cash the bond, you can mail it directly to the Bureau of the Fiscal Service. Send the bond, a completed Form PD 1239 (Request for Payment of Savings Bond), a copy of your photo ID, and a letter stating the bond's series, denomination, and serial number.

Mail the package to: Bureau of the Fiscal Service, Parkersburg, WV 26106-1328. Include your return address and consider using certified mail so you have proof of delivery. The Treasury Department will verify the bond and mail you a check, which typically takes four to six weeks.

This method is slower and riskier because the bond travels through the mail. Use it only if your bank refuses and you cannot access TreasuryDirect.

Understanding the one-year holding period and early redemption penalty

You cannot redeem a Series EE bond until at least one year has passed since the purchase date. If you try to redeem before that date, the bank or Treasury Department will refuse. This rule applies to all Series EE bonds regardless of when they were issued.

If you redeem between one and five years after purchase, you lose the last three months of interest. For example, if your bond has earned $100 in interest but you cash it in at year three, you receive only $75 in interest. After five years, this penalty no longer applies — you receive the full interest earned.

The penalty exists to discourage early redemption. Most people wait at least five years to avoid losing money, unless they have an urgent financial need.

What happens to the interest you earned

The interest on a Series EE bond is subject to federal income tax. You do not owe state or local tax on the interest. When you redeem the bond, the bank or Treasury Department does not withhold tax automatically — you will owe the tax when you file your federal income tax return.

Keep the redemption receipt showing the amount of interest earned. You will need this to report the income to the IRS. If you redeemed multiple bonds, add up all the interest and report the total on your tax return.

Some people choose to report the interest each year as the bond earns it, rather than all at once when they redeem. This can lower your tax bill if you are in a lower tax bracket in earlier years. Talk to a tax professional if you own bonds worth a significant amount.

What to do if you cannot find the bond or lost it

If you own a digital bond through TreasuryDirect, you do not have a physical copy to lose — it exists only in your online account. If you cannot access your account, you can verify your identity and regain access by calling 844-284-2676.

If you lost a paper bond, contact the Treasury Department at 844-284-2676 or visit treasurydirect.gov. You will need to provide the bond's series, denomination, and serial number if you have it. The Treasury Department can search their records and issue a replacement or process a redemption without the physical bond, though this takes longer than a standard redemption.

If you do not have the serial number, gather any paperwork from when you purchased the bond — a receipt, confirmation email, or old bank statement. The Treasury Department can sometimes locate the bond using your name, Social Security number, and purchase date.

Frequently Asked Questions

Can I cash in a Series EE bond before one year has passed?

No. All Series EE bonds have a one-year holding period. You cannot redeem the bond until at least one year after purchase, regardless of the reason or the amount of interest earned.

How much will I lose if I cash in my bond at year three?

You will lose three months of interest. If your bond has earned $120 in interest, you receive only $90. After five years, you keep all the interest with no penalty.

Do I have to pay taxes when I cash in the bond?

You will owe federal income tax on the interest, but the bank does not withhold it automatically. Report the interest on your federal tax return. You do not owe state or local tax on Series EE bond interest.

What if my bank says they do not cash bonds anymore?

You can redeem through TreasuryDirect if the bond is digital, or mail the paper bond to the Bureau of the Fiscal Service in Parkersburg, West Virginia. Mailing takes four to six weeks, so allow extra time.

Can someone else cash in my bond if I give them permission?

No. The person whose name is on the bond must sign it in front of the teller or provide a notarized power of attorney. You cannot simply sign the back and hand it to someone else.