Where and how to redeem EE bonds
You can redeem EE Series savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route depends on whether you hold paper bonds or electronic bonds registered in TreasuryDirect.
If you have paper EE bonds, take them to any bank or credit union where you have an account. Bring the bonds themselves and a valid ID. The institution will verify the bonds are genuine, confirm you are the registered owner or authorized representative, and process the redemption. Most banks complete this same day, though some may take one to three business days. You will receive the redemption value in cash or as a deposit to your account.
If you hold electronic EE bonds through TreasuryDirect (the Treasury's online platform), you redeem them directly through your TreasuryDirect account. Log in, navigate to "Manage My Securities," select the bonds you want to redeem, and request the redemption. The funds transfer to your linked bank account within one to two business days.
Key Takeaways
- Paper EE bonds can be redeemed at any bank or credit union where you have an account by presenting the bonds and a valid ID.
- Electronic EE bonds registered in TreasuryDirect are redeemed through your online account and the funds arrive in your linked bank account within one to two business days.
- You can redeem EE bonds anytime after one year of purchase, though redeeming before five years means you lose the last three months of interest.
- The redemption value includes the original purchase price plus all accrued interest up to the redemption date.
The one-year holding period and early redemption penalty
EE bonds cannot be redeemed during the first year you own them. If you try to cash one in before that year is up, the financial institution will refuse the transaction. This is a Treasury rule that applies to all EE bonds regardless of where you hold them.
After the first year, you can redeem at any time. However, if you redeem before the bond has been held for five years, you forfeit the last three months of interest. For example, if you redeem a bond after three years and four months, you receive interest only through the three-year mark. This penalty exists to discourage early redemption and is built into the bond's terms when you purchase it.
If you need the money but want to avoid the penalty, you can wait until the five-year mark has passed. After five years, you can redeem without losing any accrued interest.
What you need to bring to a bank or credit union
For paper bonds, bring the physical bonds themselves and a government-issued photo ID such as a driver's license or passport. If you are redeeming bonds on behalf of someone else—for example, as a parent redeeming a bond registered to a minor child—bring documentation showing you are authorized to act on their behalf, such as a power of attorney or guardianship papers.
Some banks may ask for additional information, such as your Social Security number or account number if you are depositing the funds into an existing account. Call ahead to confirm what your specific bank requires, since policies vary by institution.
For electronic bonds in TreasuryDirect, you need only your login credentials and access to the email address or phone number associated with your account, since the Treasury may send a verification code before processing the redemption.
How the redemption value is calculated
The amount you receive when you redeem an EE bond equals the original purchase price plus all interest accrued from the purchase date to the redemption date. EE bonds earn interest monthly, and that interest compounds semiannually—meaning interest earns interest.
The exact redemption value depends on when the bond was issued and when you redeem it. The Treasury publishes redemption value tables on its website for paper bonds issued before May 2003. For bonds issued after May 2003 (both paper and electronic), the value is calculated based on a fixed rate set at purchase plus variable rates that change every six months.
You can look up the current value of a paper bond using the Treasury's Savings Bond Calculator on TreasuryDirect.gov. For electronic bonds, your TreasuryDirect account displays the current value in real time.
Tax reporting when you redeem
The interest you earn on EE bonds is subject to federal income tax, but not state or local income tax. You do not pay tax when you purchase the bond or when you redeem it—you pay tax on the interest only.
When you redeem an EE bond, the financial institution does not automatically report the transaction to the IRS. You are responsible for reporting the interest income on your federal tax return. If you redeemed bonds during the tax year, add the total interest earned to your income when you file.
Keep records of the redemption value and the original purchase price for each bond you cash in. The difference is the interest you earned, and that is the amount you report as income. If you redeemed multiple bonds, add up all the interest and report the total.
What to do if you cannot find your bonds or lost them
If you own paper EE bonds but cannot locate them, contact the Treasury's Bureau of the Fiscal Service. You can file a claim for lost or destroyed bonds by submitting Form FS Form 1048 (Claim for Lost, Stolen, or Destroyed U.S. Savings Bonds). The form requires information about the bonds, such as the series, denomination, and issue date if you have it.
The process can take several months, and the Treasury will investigate whether the bonds were ever redeemed. If the investigation confirms the bonds were not cashed in, the Treasury will issue replacement bonds or a check for the redemption value. You will need to provide as much documentation as possible—purchase receipts, gift letters, or bank statements showing the purchase.
For electronic bonds in TreasuryDirect, your account is password-protected and your bonds are held digitally, so loss or theft is less of a concern. If you lose access to your account, you can reset your password or contact TreasuryDirect customer service to regain access.
Redeeming bonds held in a trust or estate
If an EE bond is registered in a trust or was part of someone's estate, the redemption process is more complex. For bonds in a living trust, the trustee can redeem them by presenting the bond, a copy of the trust document, and a valid ID to a bank or financial institution.
For bonds in a deceased person's estate, the executor or administrator must redeem them. This typically requires presenting the bond, a certified copy of the death certificate, proof of the executor's authority (such as letters testamentary from the probate court), and a valid ID. Some banks may require additional documentation depending on the size of the estate or the bond's value.
If the bonds are held in TreasuryDirect, the executor or trustee can contact the Treasury directly to request a transfer or redemption. The Treasury has a specific process for handling deceased account holders, and you will need to provide the death certificate and proof of authority.
Frequently Asked Questions
Can I redeem part of a bond or do I have to cash the whole thing in?
You must redeem the entire bond. EE bonds cannot be partially redeemed. If you own a $100 bond and want cash, you redeem the full $100 (plus accrued interest) and receive that total amount.
What happens if I redeem a bond before it reaches face value?
EE bonds are may provide to reach face value (double the purchase price) within 20 years. If you redeem before that happens, you receive the current redemption value, which may be less than face value. For example, if you buy a $50 bond and redeem it after two years, you might receive $52 instead of the $100 face value. You still receive your principal plus all accrued interest—you simply have not held it long enough for it to double.
Do I need to report the redemption to the IRS when I cash in the bond?
The bank or credit union does not report the redemption to the IRS. You are responsible for reporting the interest income on your tax return. Keep your redemption documentation so you can calculate the interest earned and report it correctly.
Can I redeem an EE bond at any bank, or only the bank where I have an account?
Most banks will redeem EE bonds even if you do not have an account there, though some may require you to have an account or may charge a small fee. Call ahead to confirm the bank's policy. Credit unions typically redeem bonds for members only.
How long does it take to get the money after I redeem?
At a bank or credit union, you usually receive the funds the same day or within one to three business days. For electronic bonds redeemed through TreasuryDirect, the funds arrive in your linked bank account within one to two business days.