Where to redeem your EE bonds

You can redeem EE bonds at most banks and credit unions, or directly through the U.S. Treasury's TreasuryDirect website. The bank or credit union route is usually fastest if you have an account there — you walk in with the bond, show ID, and the teller handles it. If you don't have a local bank relationship or prefer to stay online, TreasuryDirect lets you redeem bonds you own without leaving home.

Some credit unions and smaller banks don't handle bond redemptions, so call ahead before you go. The Treasury's website has a Find a Paying Agent tool that shows which banks near you will redeem bonds. If you're redeeming a paper bond, you'll need the physical certificate. If it's a digital bond held in TreasuryDirect, you only need your login.

Key Takeaways

  • EE bonds can be redeemed at banks, credit unions, or through TreasuryDirect, and you must wait at least one year from purchase before cashing them in.
  • If you redeem before five years have passed, you lose the last three months of interest as a penalty.
  • The Treasury will send you a 1099-INT form in January for the interest you earned, which you owe income tax on in the year you redeem.
  • Paper bonds require the physical certificate and ID; digital bonds require only your TreasuryDirect login.

The one-year and five-year rules

You cannot redeem an EE bond until at least one year after you bought it. If you try to cash it in before that year is up, the bank or Treasury will refuse. This is a hard rule with no exceptions.

If you redeem between one year and five years after purchase, you lose the last three months of interest as a penalty. For example, if you bought a bond on January 15, 2023, and redeem it on March 1, 2024, you get the interest through November 2023 — the December, January, and February interest is forfeited. After five years, there is no penalty, and you keep all the interest you've earned.

What happens at the bank

Bring your paper bond certificate and a government-issued ID (driver's license, passport, or state ID). The teller will verify the bond is genuine, check that you meet the one-year rule, and calculate what you're owed. They'll give you the cash or deposit it into your account on the spot — usually within minutes.

If the bond is in someone else's name but you're the registered owner or co-owner, bring that documentation. If the original owner has died, the process is more complex and varies by bank; call ahead to ask what paperwork they need. Some banks require a death certificate and proof that you're the rightful heir.

Redeeming through TreasuryDirect

Log into your TreasuryDirect account, find the bond you want to redeem under "Manage Securities," and click the redemption option. You'll confirm the amount and the Treasury will deposit the money into your linked bank account within one to three business days. There's no fee, and you don't have to go anywhere.

TreasuryDirect only works for digital bonds — bonds you bought through the website or that were converted to digital form. If you have an old paper bond and want to avoid the bank trip, you can mail it to the Treasury's Bureau of the Fiscal Service with a redemption request form, but this takes several weeks and requires certified mail.

Understanding the tax form you'll receive

In January of the year after you redeem, the Treasury will mail you a Form 1099-INT showing the interest you earned on the bond. You owe federal income tax on that interest in the year you cashed it in, even if you don't receive the form until the following January.

The interest is taxed as ordinary income at your regular tax rate — it's not a capital gain. If you redeemed multiple bonds or earned interest from other sources, all of it goes on the same 1099-INT. Keep the form with your tax records. If you don't receive one by early February, contact the Treasury at 844-284-2676.

What to do if you've lost the paper bond

If your paper bond is lost, stolen, or destroyed, you can file a claim with the Treasury to replace it or get the value. You'll need to fill out Form PD 1048 (Claim for Lost, Stolen, or Destroyed U.S. Savings Bond) and mail it to the Bureau of the Fiscal Service with as much information as you have — the serial number, the issue date, the face value, and the original owner's name.

The process takes several weeks. The Treasury will verify the bond in their records and either reissue it or send you a check. If you can't remember the details, include what you do know; the Treasury can often look it up by the owner's Social Security number and the approximate purchase date.

Redeeming bonds owned by a minor

If the bond is registered to a child, a parent or legal guardian must redeem it. Bring the child's birth certificate or Social Security card, your ID, and the bond. The bank will deposit the money into an account in the parent's or guardian's name, or issue a check to the parent or guardian.

The interest is still taxable income to the child in the year of redemption, and the Treasury will issue the 1099-INT in the child's name. You may be able to report the interest on the child's tax return instead of your own, which can lower the overall tax if the child has little other income — consult a tax professional about whether this makes sense for your situation.

Frequently Asked Questions

Can I redeem part of a bond and keep the rest?

No. EE bonds are all-or-nothing — you redeem the entire bond or none of it. You can't cash in half and keep the other half earning interest. If you want to redeem some bonds but not others, you redeem the specific bonds you choose, one at a time.

What if the bank says they won't redeem my bond?

Banks can refuse if the bond appears altered, if you can't prove ownership, or if you don't meet the one-year rule. If you believe the refusal is wrong, contact the Treasury directly at 844-284-2676 or mail the bond to the Bureau of the Fiscal Service with a letter explaining the situation. The Treasury can verify the bond and issue a replacement or payment.

Do I have to pay state income tax on the interest?

No. EE bond interest is exempt from state and local income tax — you only owe federal tax. This is one of the main reasons people buy them. The 1099-INT you receive only reports federal taxable income.

What if I want to redeem the bond but delay paying taxes?

You can't. The interest becomes taxable in the year you redeem, regardless of when you actually receive the money. If you redeem in 2024, you report the interest on your 2024 tax return, even if the check arrives in January 2025.

Can I redeem a bond at any bank, or only the one where I have an account?

You can redeem at any bank that offers bond redemption services — you don't need an account there. However, if you want the money deposited directly, most banks will deposit it only into an account at their institution. If you don't have an account, ask if they'll issue a check instead.