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

Series EE bonds come in two forms: paper bonds issued before 2012, and digital bonds purchased through TreasuryDirect. The way you cash them is different for each. Paper bonds can be cashed at most banks and credit unions without an account. Digital bonds must be redeemed through your TreasuryDirect account online. Either way, you need to wait at least one year before cashing — if you redeem before five years have passed, you lose the last three months of interest.

The process itself is straightforward and takes minutes if you have the right documents. The harder part is knowing which method works for your situation and understanding what happens to your money after you submit the request.

Key Takeaways

  • Paper Series EE bonds can be cashed at most banks and credit unions, even if you don't have an account there.
  • Digital bonds purchased through TreasuryDirect must be redeemed through your online account; you cannot cash them at a bank.
  • You must hold a Series EE bond for at least one year before cashing it, and redeeming before five years costs you the last three months of interest.
  • Banks typically process paper bond redemptions the same day, while TreasuryDirect transfers funds within one to three business days.
  • The amount you receive includes your original purchase price plus all accrued interest, which is subject to federal income tax in the year you redeem.

Cashing a paper Series EE bond at a bank or credit union

Walk into any bank or credit union branch with your physical bond and a valid government-issued ID. You do not need to be a customer. The teller will examine the bond to confirm it is a Series EE, check that it has been held for at least one year, and verify your identity. This usually takes five to ten minutes.

The bank will pay you the current redemption value — your original purchase price plus all interest earned to date — in cash, check, or deposit to an account you specify. Most banks process this same day. Some branches may ask you to fill out a simple form, but there is no application or approval process; the bank is simply following Treasury rules.

If you cannot find a bank willing to cash your bond, call the Federal Reserve's Bond Redemption Service at 844-284-2676. They can direct you to a location that will do it, or in rare cases process it by mail.

Redeeming a digital Series EE bond 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 Series EE bond you want to redeem. Click the redemption option and confirm the transaction. TreasuryDirect will ask you to specify where the funds should go — either to a linked bank account or held in your TreasuryDirect cash account.

The redemption is processed immediately, but the money takes one to three business days to reach your bank account if you chose direct deposit. If you elect to hold the funds in your TreasuryDirect cash account, they appear there right away and you can transfer them to your bank later.

You cannot redeem a digital bond at a bank branch. The only way to cash a TreasuryDirect bond is through your online account.

What happens if you redeem before five years

Series EE bonds are designed to be held for 20 years, but you can cash them after just one year. However, there is a penalty for early redemption: you lose the last three months of interest. This means if you redeem after two years, you receive interest for only 21 months, not 24.

The penalty applies regardless of whether you redeem at a bank or through TreasuryDirect. After five years, the penalty no longer applies, so you receive all accrued interest with no reduction.

Before you redeem early, calculate whether you actually need the money now or whether waiting a few months to avoid the penalty makes sense. The amount of interest you lose depends on how long you have held the bond and what the current interest rate is.

Understanding the redemption value and tax consequences

The amount you receive when you redeem is called the redemption value. It equals your purchase price plus all interest earned from the date you bought the bond through the redemption date. For example, if you bought a $50 Series EE bond 10 years ago and it has earned $35 in interest, your redemption value is $85.

That $35 in interest is subject to federal income tax in the year you redeem the bond. You do not pay tax when the interest accrues — only when you cash the bond. The bank or TreasuryDirect will not withhold tax automatically; you will report the interest on your tax return and pay any tax owed at that time.

If you plan to use the bond proceeds for education expenses, you may be able to exclude some or all of the interest from taxation under the Education Savings Bond Program, but you must meet specific requirements and file Form 8815 with your tax return. This is a separate decision from the redemption itself.

What to do if you lost your paper bond or forgot your TreasuryDirect password

If you have a paper Series EE bond but cannot find it, contact the Treasury Department's Bureau of the Fiscal Service at 844-284-2676. They can search their records to confirm the bond exists and issue a replacement. You will need to provide the bond's series, denomination, and the approximate date you purchased it. This process takes several weeks.

If you own a digital bond through TreasuryDirect but forgot your password, use the "Forgot Password" link on the TreasuryDirect login page. You will answer security questions and receive a reset link by email. If you cannot access your email, call TreasuryDirect customer service at 844-284-2676 to verify your identity and regain access.

Redeeming bonds held in a minor's name or an estate

If the bond is registered in a minor's name, a parent or legal guardian must present it at the bank along with proof of guardianship (such as a birth certificate). The funds can be deposited into a custodial account or the parent's account, depending on the bank's policy.

If the bond owner has died, the person handling the estate (the executor or administrator) can redeem the bond by presenting the death certificate and proof of their authority to act on behalf of the estate. The redemption value becomes part of the estate's assets and is subject to any applicable estate taxes.

Frequently Asked Questions

Can I redeem a Series EE bond before one year?

No. Series EE bonds must be held for at least one year before redemption. If you try to redeem before that, the bank or TreasuryDirect will refuse the request. You will have to wait until the one-year anniversary of the purchase date.

Do I have to redeem the entire bond, or can I cash part of it?

You must redeem the entire bond. You cannot cash out a portion and keep the rest earning interest. If you only need part of the value, you will receive the full amount and have to decide what to do with the excess.

What if my bank says they won't cash my Series EE bond?

Some smaller branches may not be set up to process bond redemptions. Call ahead or try a larger branch of the same bank. If no bank will help, contact the Federal Reserve's Bond Redemption Service at 844-284-2676 for a referral or to arrange redemption by mail.

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

At a bank, you typically receive cash or a check the same day. Through TreasuryDirect, funds reach your linked bank account in one to three business days. If you choose to hold the money in your TreasuryDirect cash account, it appears immediately.

Do I have to report the interest as income when I redeem?

Yes. The interest portion of your redemption value is taxable federal income in the year you redeem. You report it on your tax return. No tax is withheld automatically, so you may owe tax when you file unless you have other income that covers it.