You can cash Series EE bonds at a bank or credit union, or through the U.S. Treasury if you own them electronically

The method depends on whether your bonds are paper or digital. Paper bonds go to a bank or credit union; electronic bonds held in TreasuryDirect go directly through the Treasury website. Both routes take a few days to a few weeks. You do not need to wait until maturity to cash them — you can redeem them anytime after one year, though you will lose the last three months of interest if you cash before five years have passed.

The process itself is straightforward, but the timing matters. If you cash before the five-year mark, the Treasury withholds the final three months of accrued interest as a penalty. After five years, you get all interest earned. After 30 years, the bonds stop earning interest and should be cashed.

Key Takeaways

  • Paper Series EE bonds are cashed at a bank or credit union by presenting the physical bond and a valid ID; electronic bonds are redeemed through your TreasuryDirect account online.
  • You can cash Series EE bonds anytime after one year, but redeeming before five years costs you the last three months of interest as a penalty.
  • Banks and credit unions may charge a small fee to process paper bond redemptions, and some may refuse to cash bonds issued more than a certain number of years ago.
  • Electronic bonds typically transfer to your bank account within three to five business days after you request redemption.
  • After 30 years, Series EE bonds stop earning interest and should be cashed or exchanged for Series I bonds to keep money growing.

Cashing paper Series EE bonds at a bank or credit union

Walk into any bank or credit union branch with your physical bond and a government-issued photo ID. The teller will verify the bond's serial number and your identity, then process the redemption. Some institutions charge a small fee — typically $5 to $25 — to handle the transaction, though many waive it for customers with accounts. Ask before you hand over the bond.

Not all banks will cash bonds issued more than 40 years ago. If your bond is very old, call ahead to confirm the branch will accept it. Some larger banks have stopped cashing paper bonds altogether; if that happens, the Federal Reserve Bank in your region will cash them for you. You can find your regional Federal Reserve Bank on the Board of Governors website.

Bring the bond itself — you cannot cash it by mail or phone. The teller will give you cash, a check, or deposit the funds directly into your account, depending on what the bank offers. You will receive a receipt showing the redemption amount and the interest earned.

Redeeming electronic Series EE bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to "Manage My Securities" and select the Series EE bond you want to redeem. Click "Redeem" and confirm the transaction. The system will show you the redemption value, including all interest earned to date.

The Treasury will transfer the funds to the bank account you have on file with TreasuryDirect within three to five business days. If you need to update your bank details before redeeming, do that first — the account must match the name on your TreasuryDirect account. You will receive an email confirmation of the redemption request and another when the funds have been sent.

If you have forgotten your TreasuryDirect login, you can reset it on the website. If you cannot access your account, call the TreasuryDirect customer service line at 844-284-2676 to request a manual redemption.

Understanding the early redemption penalty

Series EE bonds earn interest monthly, but the Treasury holds back the last three months of accrued interest if you redeem before five years have passed. This is not a fee — it is a forfeiture of interest you would have earned. For example, if a bond has earned $50 in interest over two years, you lose roughly $12.50 (three months' worth) if you cash it before the five-year mark.

After five years, you receive all interest earned with no penalty. The bond continues to earn interest for 30 years total. If you redeem between year five and year 30, you get the full amount with no deduction.

This penalty structure is why many people hold Series EE bonds for at least five years. If you need the money sooner, the penalty is usually small enough that it does not outweigh the benefit of accessing your cash.

What happens if you cannot find your bond or lost the paper copy

If you own paper bonds but cannot locate them, contact the Treasury's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov. You will need to provide the bond's series, denomination, and issue date if you have them. The Treasury can search its records and may be able to issue a replacement or process a redemption without the physical bond, though this takes longer and requires documentation of ownership.

If you own electronic bonds through TreasuryDirect, your account is your proof of ownership. You do not need a physical document — you simply log in and redeem.

If a bond was issued in someone else's name and they have passed away, the redemption process is different. The estate or authorized representative will need to provide a death certificate and proof of authority to act on behalf of the deceased's account.

Taxes and reporting when you redeem

The interest you earn on Series EE bonds is subject to federal income tax, but not state or local income tax. You do not pay tax when you redeem — you pay it when you file your federal tax return for the year you cashed the bond. The bank or Treasury does not send you a 1099 form automatically; you are responsible for reporting the interest income.

To calculate the interest, subtract the purchase price from the redemption amount. If you bought a $50 bond for $25 and cashed it for $52, your interest income is $27. Report this on your tax return in the year you redeemed it.

Some people use a tax strategy called deferral: they do not report the interest each year but instead report it all in the year they redeem the bond. This can be useful if you expect to be in a lower tax bracket in a future year. Talk to a tax professional if you hold many bonds or want to plan around this.

What to do if your bank refuses to cash the bond

If a bank declines to cash your paper bond, you have two options. First, try another bank or credit union — policies vary by institution. Second, contact your regional Federal Reserve Bank, which will cash any valid Series EE bond regardless of age or issue date. Find your regional bank on the Board of Governors website, then call or visit in person with your bond and ID.

Federal Reserve Banks do not have walk-in hours for bond redemptions at most locations. Call ahead to confirm their process and whether you can mail the bond or must appear in person. Some will accept bonds by mail if you provide a notarized letter of authorization.

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. You cannot redeem them before 12 months from the issue date, even in an emergency. After one year, you can redeem anytime, but you will forfeit the last three months of interest if you cash before five years.

What if I lost the paper bond but remember the serial number?

Contact the Treasury at 844-284-2676 with the serial number, series, denomination, and issue date. They can search their records and may issue a replacement or process a redemption. Bring documentation of ownership, such as old statements or proof of purchase.

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

Series EE bonds are redeemed as a whole — you cannot cash half a bond. You must redeem the entire bond for its full value, including all accrued interest.

What if the bank charges a fee I think is too high?

You can shop around — different banks charge different fees, and some waive them for account holders. If no local bank will cash it affordably, the Federal Reserve Bank in your region will do it for free.

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

Paper bonds redeemed at a bank are usually processed the same day or within one business day. Electronic bonds through TreasuryDirect transfer within three to five business days. The exact timing depends on your bank's processing speed.