You can cash in an EE bond at your bank, through the Treasury Department, or by mail — but the timing and penalties depend on how long you've held it

An EE bond is a savings bond issued by the U.S. Treasury that earns interest over time. You can redeem it (turn it into cash) at any point after you've owned it for one year, but the amount you receive depends on when you cash it in. If you cash it in before 5 years have passed, you lose the last three months of interest as a penalty. After 5 years, you get the full value with no penalty.

The three main ways to cash in an EE bond are through a bank, directly through the Treasury's TreasuryDirect website, or by mailing the bond to the Treasury. Each route has different requirements and takes different amounts of time.

Key Takeaways

  • You must hold an EE bond for at least one year before you can cash it in, and cashing it in before five years costs you the last three months of interest.
  • Banks will cash EE bonds if you have an account there, but not all banks do this — call ahead to confirm.
  • TreasuryDirect (the Treasury's online system) lets you redeem digital EE bonds instantly if you own them through that platform.
  • Paper EE bonds can be cashed by mail to the Treasury, which takes about four weeks from the time they receive it.
  • You will owe federal income tax on the interest your bond earned, but not state or local tax.

Cashing in an EE bond at your bank

If you have a paper EE bond and a bank account, your bank may cash it for you. This is the fastest in-person option — you walk in with the bond, sign the back, and leave with cash or a deposit to your account the same day.

Not every bank does this. Call your bank first and ask if they cash U.S. savings bonds. If they do, ask what documents you need to bring (usually your ID and the bond itself). Some banks limit how many bonds they'll cash per day or charge a small fee, so confirm the details before you go.

Your bank will not cash a digital EE bond — those exist only in the TreasuryDirect system. If your bond is digital, you must redeem it through TreasuryDirect or by mailing a request to the Treasury.

Redeeming a digital EE bond through TreasuryDirect

TreasuryDirect is the Treasury Department's online platform where you can buy and manage digital savings bonds. If you own an EE bond through TreasuryDirect, you can redeem it directly on the website without leaving home.

Log into your TreasuryDirect account, navigate to the "Manage Securities" section, and select the bond you want to redeem. The system will show you the current value (including all interest earned) and ask you to confirm. Once you submit the redemption request, the money goes into the bank account linked to your TreasuryDirect account within one to two business days.

You need a TreasuryDirect account to do this, and you must have set up a linked bank account for the deposit. If you don't have TreasuryDirect yet but own a digital bond, you can create an account at treasurydirect.gov and link your existing bond to it.

Mailing a paper EE bond to the Treasury

If your bank won't cash your bond or you prefer not to go in person, you can mail the paper bond to the Treasury Department. This takes longer — typically four weeks from the time they receive it — but it works for any paper EE bond.

You'll need to fill out Form PD 1239 (Application to Redeem Series EE Savings Bonds), sign it, and mail both the form and the bond to the address listed on the form. The Treasury will send you a check to the address on file, or deposit the money directly to your bank account if you provide those details on the form.

You can download Form PD 1239 from treasurydirect.gov. Include a copy of your ID with your mailing package. Mail everything to the Treasury Retail Securities Site in Parkersburg, West Virginia — the address is on the form itself. Use certified mail or another method that lets you track the package, since you're sending the actual bond.

What happens if you cash in before five years

If you redeem an EE bond less than five years after you bought it, the Treasury withholds the last three months of interest as a penalty. This means you receive less than the bond's current value.

For example, if your bond is worth $1,000 but you've only owned it for three years, you lose three months of interest. The amount you actually receive depends on how much interest the bond earned during those three months — it could be $5 to $15 or more, depending on the bond's interest rate and current value.

After five years, there is no penalty. You receive the full current value of the bond, including all interest earned.

Understanding the tax on your bond's interest

When you cash in an EE bond, you owe federal income tax on the interest it earned — not on the original amount you paid. You do not owe state or local tax on savings bond interest.

The Treasury does not automatically withhold tax when you redeem. Instead, you report the interest on your federal tax return for the year you cash it in. If you cashed in multiple bonds or have other income, your total tax bill may change.

Keep track of how much you originally paid for the bond and how much you received when you cashed it in. The difference is the interest, and that's what you'll report to the IRS. If you're unsure about your tax situation, talk to a tax professional or contact the IRS directly.

What to do if you've lost a paper bond

If you own a paper EE bond but can't find it, you can still redeem it — but the process takes longer. You'll need to file a claim with the Treasury to report it lost or destroyed.

Fill out Form PD 1048 (Claim for Loss of United States Savings Bond) and mail it to the Treasury along with any documentation you have (like purchase receipts or old statements). The Treasury will investigate and, if they confirm you owned the bond, issue you a replacement or payment. This can take several months.

If you own a digital EE bond through TreasuryDirect, you don't need to worry about losing the physical bond — it exists only in your online account, and you can redeem it anytime you log in.

Frequently Asked Questions

Can I cash in an EE bond less than one year after I bought it?

No. The Treasury requires you to hold an EE bond for at least one year before you can redeem it. If you need the money sooner, you'll have to wait or find another source of funds.

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

You must cash in the entire bond. You cannot redeem a portion of it and keep the rest earning interest. If you want to keep some money invested, you'll need to buy a separate bond.

What if my bank says they don't cash savings bonds?

Use TreasuryDirect if your bond is digital, or mail the bond to the Treasury using Form PD 1239. Some credit unions also cash savings bonds, so you can call around to other financial institutions in your area before mailing it.

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

If it's a digital bond in TreasuryDirect, log in and the current value appears on your account dashboard. For a paper bond, the Treasury publishes value tables on treasurydirect.gov — you enter the series, denomination, and issue date to find out what it's worth today.

Will I get a 1099 form for the interest I earned?

The Treasury does not automatically send a 1099 when you redeem a savings bond. You are responsible for reporting the interest on your tax return. Keep your own records of what you paid and what you received so you can calculate the interest correctly.