You can cash Series EE bonds at your bank, through the Treasury Department, or by mail — but the method depends on whether you own the physical paper or the digital version

Series EE bonds come in two forms: paper bonds you hold in your hand, and digital bonds you own through TreasuryDirect, the U.S. Treasury's online system. The way you cash them in depends entirely on which type you own. Paper bonds go to a bank or credit union; digital bonds stay within TreasuryDirect. Both methods are straightforward once you know which path applies to you.

You can cash in a Series EE bond as soon as one year after you buy it, though you will lose the last three months of interest if you cash it before five years have passed. After five years, you keep all the interest earned. There is no penalty for cashing after five years — you simply get the full value.

Key Takeaways

  • Paper Series EE bonds are cashed at a bank or credit union by signing the back and presenting them with a photo ID.
  • Digital Series EE bonds held in TreasuryDirect are cashed online through your account — no bank visit required.
  • Cashing a bond before five years old costs you the last three months of interest, but you can still do it after one year.
  • The Treasury will send you a check by mail within 15 business days if you mail in paper bonds, or deposit funds electronically if you redeem through TreasuryDirect.
  • You will receive a 1099-INT form at tax time reporting the interest you earned, which counts as taxable income.

Cashing paper Series EE bonds at a bank or credit union

Walk into any bank or credit union branch with your paper bonds and a photo ID. You do not need to be a customer there. Sign the back of each bond in the presence of a bank employee — this is required. The employee will verify the bond's current value using Treasury tables or their system, and they will either give you cash or deposit the money into an account you specify.

Most banks will cash the bond the same day. Some branches may ask you to wait while they verify the bond's authenticity or current value, but this usually takes only a few minutes. If you have a large number of bonds or an unusually old bond, call ahead to confirm the branch can handle it that day.

You can also mail paper bonds to the Federal Reserve Bank in your region, though this takes longer. Include a letter stating you want to redeem the bonds, sign the back of each bond, and include a copy of your ID. The Federal Reserve will send you a check within 15 business days. This route is slower but useful if no local bank will cash them.

Cashing digital Series EE bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and select the bond or bonds you want to redeem. Click the redeem option and confirm the transaction. The system will show you the current value before you finalize the redemption.

Once you confirm, the Treasury will deposit the money into the bank account you have on file with TreasuryDirect within one to three business days. You do not receive a check — the funds go directly to your bank. Make sure your banking information is current in your TreasuryDirect profile before you redeem.

If you have forgotten your TreasuryDirect password or no longer have access to the email address tied to your account, you will need to reset your login through the website. This can take a day or two, so plan ahead if you need the money on a specific date.

What happens if you cash a bond before five years

Series EE bonds earn interest every month. If you cash the 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 has been held for three years and nine months, you lose the interest from months 45, 46, and 47. You still receive the principal plus all other interest earned.

After five years, there is no penalty. You receive the full value of the bond including all interest earned to date. This is why many people hold Series EE bonds for at least five years — the penalty disappears and you keep everything.

Understanding the tax form you will receive

When you cash in a Series EE bond, the interest you earned is subject to federal income tax. You will not pay tax on the principal — only on the interest. The Treasury will send you a Form 1099-INT in January of the year after you redeem the bond, showing how much interest you received.

You report this interest on your tax return as income. State and local taxes may also apply depending on where you live — most states tax bond interest, though a few do not. Keep your 1099-INT form with your tax records.

If you have held the bond for many years, the interest can be substantial. For example, a $50 Series EE bond purchased 20 years ago might be worth $100 or more, meaning $50 of that is taxable interest. Plan for this when you redeem bonds, especially if you are redeeming several at once.

What to do if you have lost or damaged paper bonds

If a paper bond is lost, stolen, or damaged beyond recognition, you can file a claim with the Treasury to have it replaced or redeemed. Contact the Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov and look for the "Lost, Stolen, or Destroyed Securities" section.

You will need to provide the bond's series, denomination, issue date, and serial number if you have it. If you do not have these details, provide as much information as you can remember — the serial number from your purchase receipt, the month and year you bought it, or the state where it was issued. The Treasury will research the bond in their system and either replace it or process a redemption if the bond has matured.

This process can take several weeks, so do not expect immediate payment. Keep your purchase receipts or statements in a safe place so you have proof of ownership if this ever happens.

Redeeming bonds held in someone else's name or as a minor

If you own a Series EE bond that was issued in your name as a minor, you can redeem it as an adult with just your ID. The bond is yours once you reach the age of majority in your state, typically 18.

If a bond is registered in someone else's name and you are the beneficiary or co-owner, you cannot redeem it without that person's signature. If the original owner has died, the bond becomes part of their estate. The executor or administrator of the estate will need to work with the Treasury or a bank to redeem it, and the proceeds will go through the estate settlement process.

Frequently Asked Questions

Can I cash a Series EE bond before one year?

No. Series EE bonds have a one-year holding period — you cannot redeem them before that time has passed. After one year, you can cash them, but you will lose the last three months of interest if you do so before five years have passed.

Do I have to cash all my bonds at once?

No. You can redeem one bond, some of your bonds, or all of them. Whether you are using a bank or TreasuryDirect, you choose which bonds to redeem and which to keep. This lets you spread out the tax impact or cash in only what you need.

What if my bank says they cannot cash my Series EE bond?

Some smaller branches or credit unions may not cash bonds regularly. Ask to speak with a manager or call ahead to confirm they offer this service. If your local bank cannot help, you can mail the bonds to the Federal Reserve Bank serving your region, or open a TreasuryDirect account and contact the Treasury directly for guidance on paper bonds.

Will I owe taxes on the interest right away?

No. You will owe taxes on the interest when you file your tax return for the year you cashed the bond. The Treasury sends you a 1099-INT form in January, and you report the interest as income on your return. You do not pay taxes at the time of redemption.

How do I know the current value of my Series EE bond?

For digital bonds in TreasuryDirect, log in and your account shows the current value. For paper bonds, the bank will tell you the value when you bring them in to cash. You can also use the Treasury's Savings Bond Calculator at treasurydirect.gov to estimate the value based on the bond's issue date and denomination.