Where and how to redeem EE bonds

You can cash in EE savings bonds 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 hold it electronically.

If you own a paper EE bond, take it to any bank or credit union where you have an account. You do not need to be a customer of that institution — many will cash bonds for non-customers, though some charge a small fee. Bring the bond itself and a valid photo ID. The teller will verify the bond's serial number and current value, then issue you a check or deposit the funds directly into your account.

If you hold an electronic EE bond (issued after 2005), you redeem it through TreasuryDirect, the federal government's online bond platform. Log into your TreasuryDirect account, navigate to the bond you want to cash, and request a redemption. The Treasury deposits the funds 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 by presenting the bond and a photo ID.
  • Electronic EE bonds held in TreasuryDirect are redeemed online and deposited to your bank account within one to three business days.
  • You can redeem an EE bond as soon as one year after purchase, but you will forfeit the last three months of interest if you cash it before five years have passed.
  • The bond's redemption value is printed on the certificate (for paper bonds) or displayed in your TreasuryDirect account and includes all accrued interest.
  • If you have lost a paper bond, you can file a claim with the Treasury to recover its value, though the process takes several weeks.

The penalty for cashing in before five years

EE bonds impose a three-month interest penalty if you redeem them before the five-year mark. This means you lose the last three months of interest that has accrued on the bond, even though you are may have access to to the principal and all earlier interest.

For example, if your EE bond is worth $1,050 after three years (principal of $1,000 plus $50 in interest), and you redeem it, you will receive $1,000 plus the interest earned minus three months' worth. The exact amount of the penalty depends on the bond's interest rate and how long you have held it.

If you hold the bond for five years or longer, there is no penalty — you receive the full redemption value, which includes all accrued interest from the purchase date forward.

Finding the current value of your bond

For paper bonds, the Treasury publishes a redemption value table based on the bond's series, denomination, and issue date. You can look up your bond's value on the TreasuryDirect website by entering its series letter, denomination, and the month and year it was issued. The table shows what your bond is worth on the first and fifteenth of each month.

For electronic bonds, your TreasuryDirect account displays the current value in real time. Log in, select the bond, and the redemption value appears immediately. This value updates monthly on the first business day.

The redemption value always includes the principal you paid plus all interest earned to date. You do not need to calculate anything yourself — the value shown is what you will receive (minus the three-month penalty if you redeem before five years).

What to do if you have lost a paper bond

If you have lost, damaged, or destroyed a paper EE bond, you can file a claim with the Bureau of the Fiscal Service, the Treasury office that manages savings bonds. You will need the bond's series letter, denomination, and issue date — information that may appear on old bank statements, tax records, or correspondence from when you purchased it.

Submit Form FS Form 1048, "Claim for Lost, Stolen, or Destroyed Savings Bond," along with any supporting documentation. The process typically takes four to six weeks. Once approved, the Treasury will issue a replacement bond or pay you its current redemption value, depending on your request.

If you cannot locate the original purchase information, the Treasury can sometimes search its records if you provide your Social Security number and the approximate purchase date. Contact the Bureau of the Fiscal Service directly to ask whether a search is possible in your situation.

Redeeming bonds held in an estate or trust

If you are the executor of an estate or trustee of a trust that holds EE bonds, the redemption process is similar but requires additional documentation. For paper bonds, bring the bond, a photo ID, and a certified copy of the death certificate (for an estate) or trust document (for a trust) to a bank.

For electronic bonds in TreasuryDirect, the account owner's death must be reported to the Treasury before redemption can occur. The executor or trustee logs into the account (or requests access through TreasuryDirect's process for deceased account holders), reports the death, and then initiates the redemption. The funds are paid to the estate or trust account as specified in the will or trust document.

The redemption value is calculated as of the date of death for estate tax purposes, so keep documentation of the bond's value on that date. This information may be needed for the estate's final tax return.

Tax reporting when you redeem

The interest earned on an EE bond is subject to federal income tax. When you redeem the bond, you must report the interest portion of the redemption value on your tax return for that year. The bank or Treasury does not issue a 1099 form automatically — you are responsible for calculating and reporting the interest.

To find the interest earned, subtract the original purchase price from the redemption value. If you bought a $50 EE bond and redeemed it for $75, the $25 difference is taxable interest. Report this on your federal tax return in the year you cash the bond.

EE bonds are exempt from state and local income tax, so you do not report the interest to your state. If you used the bond's proceeds to pay for may have access to education expenses, you may be able to exclude some or all of the interest from federal taxation under the Education Savings Bond Program — consult a tax professional about whether you meet the income and other requirements.

Frequently Asked Questions

Can I cash in an EE bond at any bank?

Most banks and credit unions will cash EE bonds, but policies vary. Call ahead to confirm, especially if you are not a customer. Some institutions charge a small fee for non-customers. The Treasury will always redeem electronic bonds through TreasuryDirect at no charge.

What happens if I cash in my bond before one year?

You cannot redeem an EE bond until at least one year after purchase. If you try to redeem it earlier, the bank or Treasury will decline. You must wait the full year before any redemption is possible.

Do I need the original purchase receipt to cash a paper bond?

No. The bond certificate itself is the only document you need, along with a photo ID. The bond's value is printed on the certificate, so the bank can verify and redeem it without any receipt or purchase documentation.

How long does it take to get my money after I redeem?

At a bank, you typically receive a check or deposit on the same day. For electronic bonds redeemed through TreasuryDirect, the funds are deposited to your linked bank account within one to three business days, depending on your bank's processing time.

Can I redeem part of an EE bond and keep the rest?

No. EE bonds are redeemed in full only. You cannot cash in a portion of a single bond and hold the remainder. If you want to keep some of your savings in bond form, you would need to purchase additional bonds separately.