You can cash Series EE bonds at most banks, through the Treasury Department, or by mail — but the method depends on whether you own the paper bonds or digital ones

Series EE bonds come in two forms: paper bonds you hold physically, and digital bonds held in an online Treasury account called TreasuryDirect. The way you cash them differs completely. Paper bonds go to a bank or credit union; digital bonds stay within TreasuryDirect and never leave your account. Both methods take a few days to a few weeks, and both require you to wait until the bond has reached final maturity or you accept an early-redemption penalty.

The redemption value you receive is not the face value printed on the bond. Series EE bonds are sold at half their face value — a $100 bond costs $50 — and they earn interest over time. When you redeem, you get whatever the bond is actually worth on that day, which the Treasury calculates monthly. If you cash a bond before it reaches 20 years old, you lose the last three months of interest as a penalty.

Key Takeaways

  • Paper Series EE bonds can be cashed at most banks and credit unions without an account, but you will need to show ID and the bond itself.
  • Digital Series EE bonds held in TreasuryDirect can only be redeemed through your online account; you cannot take them to a bank.
  • Cashing a bond before it reaches 20 years old costs you the last three months of interest, so check the issue date before you redeem.
  • The redemption value is calculated monthly by the Treasury and is not the same as the face value printed on the bond.
  • Paper bonds take three to five business days to process at a bank; TreasuryDirect transfers take one to two business days.

Cashing paper Series EE bonds at a bank or credit union

Walk into any bank or credit union with your paper bond and a valid ID. You do not need to have an account there. The teller will look up the current redemption value using the bond's serial number and issue date, then give you the cash or deposit it into an account you name. Most banks process this within three to five business days, though some do it the same day.

Bring the bond itself — not a photocopy. The bank needs to see the original document and will usually keep a record of the serial number. If the bond is registered in two names (yours and a spouse's, for example), both owners may need to be present, depending on how the registration reads. Check the bond itself; if it says "or" between the names, either one of you can redeem it alone. If it says "and," both signatures are typically required.

Some smaller credit unions or rural banks may not redeem Series EE bonds regularly and might ask you to come back or contact their main office. Call ahead if you are unsure. If a bank refuses to redeem the bond, you can always mail it to the Treasury Department or redeem it through TreasuryDirect if you convert it to digital form first (though that conversion takes time).

Redeeming digital Series EE bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to "Manage My Securities" and find the Series EE bond you want to redeem. Click the bond and select the redemption option. The system will show you the current value and ask you to confirm. Once you confirm, the redemption is final.

The money goes into the bank account linked to your TreasuryDirect account, usually within one to two business days. You cannot redirect the payment to a different bank account; it must go to the account you registered when you set up TreasuryDirect. If you need to change that account, you can update it in your account settings, but the change may take a few days to take effect.

If you have lost access to your TreasuryDirect login, you can recover it through the website's login help page. If you cannot recover it, contact the Bureau of the Fiscal Service at 844-284-2676 (Monday through Friday, 8 a.m. to 8 p.m. Eastern time). They can verify your identity and help you regain access.

Understanding the three-month interest penalty

Series EE bonds reach final maturity at 30 years. Before that, you can redeem them anytime, but if you cash the bond before it turns 20 years old, the Treasury withholds the last three months of interest as a penalty. This is not a tax; it is a reduction in the redemption value itself.

For example, if a bond issued on January 15, 2010 is worth $1,500 on January 15, 2030 (its 20-year anniversary), you can redeem it for the full $1,500 with no penalty. But if you redeem it on January 15, 2029 (one year early), the redemption value is reduced by three months of accrued interest — so you might receive $1,480 instead of $1,500. The exact penalty depends on how much interest the bond earned that month.

Check the issue date on your bond before you redeem. If it is less than 20 years old and you need the money, the penalty is usually unavoidable. Some people hold bonds past the 20-year mark specifically to avoid this cost.

Converting paper bonds to digital and redeeming them

If you own paper Series EE bonds and want to redeem them through TreasuryDirect instead of a bank, you can convert them to digital form. This process takes several weeks and involves mailing the paper bonds to the Treasury Department.

Download the "FS Form 3500" from the Treasury website, fill it out with your bond information, and mail the form and your bonds to the address listed on the form. The Treasury will scan your bonds, add them to your TreasuryDirect account, and return the originals to you. Once they appear in your account (usually four to six weeks later), you can redeem them through TreasuryDirect whenever you want.

This route is slower than simply taking the bonds to a bank, so use it only if you prefer the digital redemption process or if your local banks will not redeem paper bonds.

What happens to the tax on the interest you earned

Series EE bonds earn federal income tax, but not state or local tax. You do not pay the tax when you redeem the bond; instead, you report the interest on your federal tax return for the year you cash it. The bank or TreasuryDirect does not send you a tax form automatically.

To calculate the interest, subtract the purchase price from the redemption value. If you bought a $50 bond and redeemed it for $85, your interest income is $35. Report this on your tax return in the year you redeem it. If you redeemed multiple bonds in the same year, add up all the interest and report the total.

Some people hold Series EE bonds specifically for education expenses and use the Series EE Education Tax Exclusion, which allows you to exclude some or all of the interest from federal tax if you meet certain conditions. This requires filing Form 8815 with your tax return. Consult a tax professional if you think you may have access to.

Redeeming bonds held in someone else's name or an estate

If you are redeeming a bond registered in a deceased person's name, you will need to provide proof of death (a certified death certificate) and proof that you have the legal right to redeem it. This might be a will, a power of attorney, or a court order naming you as executor or administrator of the estate. Banks vary in what they accept, so call ahead.

If the bond is held in a minor's name and you are the parent or guardian, you can redeem it on the child's behalf. Bring your ID and proof of guardianship (usually a birth certificate or custody order). The funds typically go into an account in the child's name, though some banks allow you to deposit them into your own account if you are the custodian.

For complex situations — a bond held in a trust, a bond with unclear ownership, or a bond from an estate — contact the Treasury Department directly at 844-284-2676 or visit treasurydirect.gov for guidance.

Frequently Asked Questions

Can I redeem a Series EE bond before it is 20 years old without losing interest?

No. Any redemption before the 20-year mark costs you the last three months of accrued interest. After 20 years, you can redeem without penalty. The penalty is automatic and cannot be waived.

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

Some banks, especially smaller ones, do not redeem savings bonds regularly. Ask to speak with a manager or try a different bank in your area. If no local bank will do it, you can mail the bond to the Treasury Department or convert it to digital form through TreasuryDirect and redeem it online.

Do I have to pay taxes when I redeem a Series EE bond?

You do not pay taxes at redemption. You report the interest income on your federal tax return for the year you cash the bond. No tax form is sent to you automatically, so you must calculate the interest yourself (redemption value minus purchase price).

How long does it take to get the money after I redeem a bond?

At a bank, three to five business days. Through TreasuryDirect, one to two business days. The exact timing depends on your bank's processing speed and whether the redemption happens on a business day or weekend.

Can I redeem a Series EE bond if I do not have the original paper bond?

If you lost the paper bond, you can file a claim with the Treasury Department using Form FS 1048, but the process takes several months. If the bond is in TreasuryDirect already, you can redeem it online without the paper copy.