You can cash Series EE bonds at your bank, through the Treasury Department, or by mail — but only after you've held them for at least one year

Series EE bonds become redeemable (meaning you can turn them into cash) one year after you buy them. Before that year is up, you cannot cash them in, even if you need the money. After the one-year mark, you can redeem them at any time, though the Treasury charges a penalty if you cash them before five years have passed — you lose the last three months of interest.

The fastest way to cash a Series EE bond is to take it to your bank or credit union and ask them to redeem it. Most banks will do this on the spot if the bond is registered in your name and you have a valid ID. If your bank won't redeem it, or if you don't have a physical bond (many are now digital), you can redeem it directly through the Treasury's website at TreasuryDirect.gov or by mail.

Key Takeaways

  • Series EE bonds cannot be cashed in during the first year you own them, no matter the reason.
  • Redeeming a bond before five years have passed costs you the last three months of interest as a penalty.
  • Paper bonds can be cashed at most banks with your ID; digital bonds must be redeemed through TreasuryDirect.gov or by mail.
  • The Treasury processes mail redemptions in about four weeks, and direct redemptions through TreasuryDirect are usually instant.

Cashing a paper Series EE bond at your bank

If you have a physical paper bond, bring it and a government-issued ID to any bank or credit union where you have an account. You do not need to be a long-time customer — most banks will redeem bonds for non-customers as well, though some may charge a small fee. The teller will verify the bond's serial number, check that it has reached the one-year mark, and calculate the current value based on the bond's issue date and the current interest rate.

The bank will then give you cash or deposit the proceeds into your account, usually the same day. Keep the receipt. If the bond is registered in someone else's name, that person must be present with ID, or you will need a power of attorney document signed by the bond owner.

Redeeming a digital Series EE bond through TreasuryDirect

Digital bonds purchased through TreasuryDirect.gov can only be redeemed through that same website — you cannot take them to a bank. 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 and ask you to confirm the redemption.

Once you confirm, the Treasury deposits the money into the bank account linked to your TreasuryDirect account within one to two business days. This is the fastest method if you own digital bonds. If you have forgotten your TreasuryDirect login, you can reset it on the website using your Social Security number and email address.

Redeeming bonds by mail

If you cannot reach a bank or do not have internet access, you can redeem a paper bond by mail. Send the bond itself, a completed FS Form 1522 (the redemption request form), and a copy of your ID to the Treasury Retail Securities Site. You can download the form from TreasuryDirect.gov or request it by phone at 844-284-2676.

Include a letter stating your name, address, Social Security number, the bond's serial number, and the bank account where you want the money deposited. The Treasury will process the request in about four weeks and mail you a check or deposit the funds directly, depending on what you request. Do not send the original bond by regular mail — use certified mail with return receipt so you have proof of delivery.

Understanding the five-year penalty

If you redeem a Series EE bond before it has been held for five years, the Treasury withholds the last three months of interest as a penalty. For example, if a bond would normally be worth $5,150 at the four-year mark, you would receive $5,100 instead — the penalty is the difference. This penalty applies whether you cash the bond at a bank or through the Treasury.

After five years, there is no penalty, and you receive the full current value of the bond. Many people wait until the five-year mark specifically to avoid this loss. Series EE bonds continue to earn interest for up to 30 years after purchase, so you are not forced to cash them at any particular time.

What happens to the interest for tax purposes

When you redeem a Series EE bond, you owe federal income tax on all the interest it has earned since you bought it. The Treasury does not withhold this tax automatically — you must report it yourself when you file your tax return. Keep the receipt from your redemption, as it will show the bond's purchase price and current value; the difference is your taxable interest.

If you bought the bond to pay for education expenses (tuition, fees, or room and board at an accredited school), you may be able to exclude some or all of the interest from your taxable income under the Education Savings Bond Program. You must meet income limits and other requirements. Consult a tax professional or the IRS website to determine whether you may have access to.

Replacing a lost or damaged bond

If your paper bond is lost, stolen, or damaged, you can request a replacement through the Treasury. Call 844-284-2676 or visit TreasuryDirect.gov and file a claim. You will need to provide the bond's serial number, issue date, and denomination. The Treasury will verify that the bond has not already been redeemed and issue a replacement, which typically takes four to six weeks.

If you cannot remember the serial number, the Treasury can search for it using your Social Security number and the approximate purchase date. Digital bonds cannot be lost in the same way — they exist only in your TreasuryDirect account — but if someone gains unauthorized access to your account, contact the Treasury immediately to freeze the account and report the breach.

Frequently Asked Questions

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

No. Series EE bonds have a one-year holding period, and the Treasury will not redeem them before that date under any circumstances. If you need cash before then, you will have to find another source.

What if I lost the bond certificate and don't know the serial number?

Call the Treasury at 844-284-2676 with your Social Security number and the approximate purchase date. They can search their records and locate the bond. You may need to provide additional proof of ownership, such as a bank statement showing the purchase.

Do I have to pay state income tax on the interest?

Series EE bonds are exempt from state and local income tax — you only owe federal tax on the interest. This is one reason some people prefer them for saving. However, you still must report the interest on your federal return.

Can someone else redeem my bond if I give them permission?

Only if the bond is registered in their name or if you provide a signed power of attorney document. The person redeeming the bond must have a government-issued ID and be present at the bank or able to access the TreasuryDirect account.

What if the bank says they won't redeem my bond?

Some smaller banks or credit unions may decline to redeem bonds. If that happens, you can redeem it through TreasuryDirect.gov or by mail. You can also try a larger bank in your area — most major banks routinely redeem savings bonds.