Where and how to cash your Series EE bonds
You can cash Series EE savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether your bonds are paper or digital.
If you have paper bonds, take them to any bank or credit union where you have an account. You do not need to be a customer there — many banks will cash them for non-customers, though some charge a small fee. Bring the bonds and a photo ID. The teller will verify the bonds are genuine, check that you meet the redemption rules (see below), and deposit the cash into your account or give it to you on the spot.
If you have digital bonds held in TreasuryDirect (the Treasury's online system), you redeem them through your TreasuryDirect account. Log in, select the bonds you want to cash, and request redemption. The money goes into your linked bank account within a few business days. You never handle physical documents.
Key Takeaways
- Series EE bonds must be at least one year old before you can cash them, and you will owe a penalty of three months' interest if you cash them before five years have passed.
- Paper bonds can be cashed at most banks and credit unions; digital bonds are redeemed through your TreasuryDirect account online.
- You will owe federal income tax on the interest your bonds earned, but not state or local tax.
- If you use the bond proceeds for education expenses, you may be able to exclude some or all of the interest from your taxes under the Education Savings Bond Program.
The one-year and five-year rules
Series EE bonds have two important timing rules. You cannot cash them at all until they are at least one year old. If you try to redeem a bond before that point, the bank or TreasuryDirect will reject the request.
If you cash a bond between one and five years old, you will lose three months' worth of interest as a penalty. For example, if a bond has earned $50 in interest and you cash it at age three years, you forfeit $12.50 (three months of the interest earned) and receive only $37.50. After five years, there is no penalty — you get all the interest the bond has earned, no matter when you cash it.
The five-year clock starts from the bond's issue date, which is printed on the bond itself or shown in your TreasuryDirect account. If you are unsure whether a bond has reached five years, ask the bank teller or check TreasuryDirect before you redeem.
What happens to the interest you earned
When you cash a Series EE bond, you receive the original amount you paid plus all the interest it earned (minus any penalty if you cashed it early). That interest is subject to federal income tax, but not state or local tax.
You do not pay the tax when you cash the bond. Instead, the bank or Treasury sends you a Form 1099-INT in January of the following year, reporting the interest you earned. You then report that interest on your federal tax return for that year. If you cashed multiple bonds, each one may generate a separate 1099-INT, or they may be combined on a single form depending on where you cashed them.
If you held the bond for many years, the interest can be substantial. A Series EE bond purchased at $50 might be worth $100 or more after 20 years, meaning you owe tax on $50 in interest. Spreading the redemption across multiple tax years — cashing some bonds this year and others next year — can help if you are concerned about a large tax bill in a single year.
The Education Savings Bond Program tax break
If you use the money from a Series EE bond to pay for may have access to education expenses in the same year you redeem the bond, you may be able to exclude some or all of the interest from your federal taxes. This is called the Education Savings Bond Program, and it applies only to Series EE and Series I bonds.
may have access to expenses include tuition and fees at an accredited college, university, or vocational school, as well as contributions to a 529 college savings plan or Coverdell Education Savings Account. Room and board, books, and supplies do not count. The bond owner (not the student) must be the one who redeems the bond and pays the education expenses.
To claim this exclusion, you will need to report the bond redemption and education expenses on Form 8815 when you file your taxes. There are income limits — if your modified adjusted gross income exceeds a certain threshold, the exclusion phases out or disappears entirely. The IRS website lists the current year's limits, which change annually.
Cashing bonds held in someone else's name
If a bond is registered in your name only, you can cash it. If it is registered in two names (for example, "John Smith or Jane Smith"), either person can redeem it without the other's permission. If it is registered as "John Smith and Jane Smith" (with "and" instead of "or"), both owners must be present to cash it, or one owner must have a power of attorney from the other.
If the original owner has died, the bond becomes part of their estate. The person handling the estate (the executor or administrator) can redeem it, but they will need to provide a death certificate and proof of their authority to manage the estate. The bank or TreasuryDirect will tell you what documents they need.
Reporting the redemption on your taxes
The bank or Treasury will issue a Form 1099-INT showing the interest you earned. You report this on your federal tax return — usually on Schedule B (Interest and Ordinary Dividends) if you file a long form, or directly on the 1040 if you file a short form. Your tax software will walk you through where to enter it.
If you are claiming the Education Savings Bond Program exclusion, you will also file Form 8815 to calculate how much interest you can exclude. The remaining interest (if any) is still reported as taxable income.
Keep your 1099-INT and any documentation of education expenses for at least three years in case the IRS asks questions. If you cashed bonds in multiple places, you may receive multiple 1099-INTs — add up all the interest reported across all forms when you file your return.
What to bring when you cash paper bonds
Bring the physical bonds and a government-issued photo ID (driver's license, passport, or state ID). Some banks may also ask for your Social Security number to verify your identity and report the redemption to the IRS.
If you are cashing bonds registered in someone else's name (and you have the right to do so), bring that person's ID as well, or bring a power of attorney or death certificate if applicable. Call the bank ahead of time if you are unsure what documents they need — policies vary by institution.
You do not need an account at the bank to cash the bonds, but having one can speed up the process. If you do not have an account there, ask whether they charge a fee for cashing bonds from non-customers. Most do not, but some charge $5 to $10.
Frequently Asked Questions
Can I cash a Series EE bond before it is one year old?
No. Series EE bonds cannot be redeemed until at least one year after the issue date. If you need the money sooner, you will have to wait or find another source of funds.
What if I lost my paper bonds?
Contact the Treasury's Bureau of the Fiscal Service. You will need to provide the bond serial numbers, issue dates, and denominations. They can issue replacement bonds, though the process takes several weeks. If you have no record of the bonds, you can request a search of Treasury records if you know approximately when they were purchased.
Do I have to cash all my bonds at once?
No. You can redeem one bond, some bonds, or all of them whenever you want (as long as each bond is old enough). Cashing them separately over time can be useful if you want to spread the tax impact across multiple years.
What if the bank refuses to cash my bonds?
Banks are not required to cash savings bonds, though most do. If your bank declines, try another bank or credit union in your area. You can always redeem them through TreasuryDirect if you have digital bonds, or mail paper bonds directly to the Treasury (the Bureau of the Fiscal Service website has instructions).
Will cashing my bonds affect my benefits or financial aid?
The interest you earn on Series EE bonds is taxable income, which could affect your tax situation. If you receive means-tested benefits (like Medicaid or SNAP), the bond redemption might count as income and affect your may be able to access. Consult with a tax professional or your benefits administrator if you are concerned.