You can redeem a Series EE bond at your bank, through the Treasury Department, or online at TreasuryDirect — 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 electronic bonds purchased through TreasuryDirect starting in 2012. Where you cash yours in depends on which type you hold. Paper bonds go to your bank or a Federal Reserve branch. Electronic bonds stay within TreasuryDirect and never leave your account. You can redeem a Series EE bond at any time after you own it, though the Treasury Department charges a penalty if you cash it in before five years have passed.

The penalty for early redemption is the loss of the last three months of interest. So if you redeem at year three, you lose the interest you would have earned in months 10, 11, and 12 of year three. After five years, there is no penalty — you simply receive the full value of the bond plus all accrued interest. The bond continues to earn interest for up to 30 years from the issue date, so you are not required to cash it in at any particular time.

Key Takeaways

  • Paper Series EE bonds are cashed at your bank or a Federal Reserve branch; electronic bonds are redeemed within your TreasuryDirect account online.
  • Redeeming before five years costs you the last three months of interest; after five years, you receive the full value with no penalty.
  • You will owe federal income tax on the interest your bond earned, but not state or local tax, and you can defer the tax until you redeem.
  • The redemption process takes one to three business days for paper bonds and is immediate for electronic bonds.

Cashing a paper Series EE bond at your bank

Take your physical bond to any bank where you have an account. The bank does not have to be the bank that issued the bond originally — any bank that offers savings bond redemption services will accept it. Bring a valid photo ID. The teller will verify the bond's serial number and current value using the Treasury Department's database, then process the redemption into your account.

Most banks complete the transaction the same day or within one business day. The funds appear in your account as a deposit. The bank will not withhold taxes — you are responsible for reporting the interest income on your federal tax return when you file. If you do not have a bank account, you can take the bond to a Federal Reserve Bank branch in your region, though this is slower and requires an appointment.

Redeeming an electronic 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 "Redeem" button next to that bond's listing. The system will show you the current value, including accrued interest, and ask you to confirm the redemption.

Once you confirm, the redemption is immediate. The funds are deposited into the bank account you have linked to your TreasuryDirect account within one to three business days. You will receive an email confirmation with the redemption details and the amount deposited. Like paper bonds, you will owe federal income tax on the interest but can defer it until you file your tax return.

Understanding the tax on redeemed bonds

The interest your Series EE bond earned is subject to federal income tax, but not to state or local tax. You report this interest as income on your federal tax return in the year you redeem the bond. The amount of taxable interest is the difference between what you paid for the bond and what you receive when you redeem it.

You have the option to report the interest each year as it accrues, rather than waiting until redemption. This is called the accrual method and is useful if you are in a lower tax bracket during the years you own the bond and expect to be in a higher bracket when you redeem. Most people use the simpler approach: report all the interest in the year they cash the bond. The bank or TreasuryDirect will not send you a tax form — you calculate the interest yourself and report it on your return.

What to do if your bond is lost, stolen, or damaged

If you own a paper bond and it is lost or stolen, contact the Treasury Department's Bureau of the Fiscal Service at 844-284-2676 or visit savingsbonds.gov. You will need to provide the bond's serial number, the issue date, and the denomination. The Treasury Department can issue a replacement bond with the same value and issue date, which means it will continue earning interest as if the original bond had never been lost.

If the bond is damaged but still readable, most banks will accept it for redemption. If it is too damaged to read, the Treasury Department can verify the bond's existence in their records and issue a replacement. For electronic bonds, there is no risk of loss or damage — your bond exists only in the TreasuryDirect system and is protected by your account login.

What happens if you miss the 30-year maturity date

Series EE bonds stop earning interest 30 years after the issue date. If you do not redeem the bond by that date, it becomes worthless — the Treasury Department does not automatically cash it for you. You must redeem it yourself before the maturity date to receive its value.

Check the issue date on your bond now. If it is approaching 30 years old, redeem it as soon as possible. For electronic bonds, you can see the maturity date in your TreasuryDirect account. For paper bonds, the issue date is printed on the front. If you are unsure whether a bond has matured, you can check its value at savingsbonds.gov by entering the serial number and issue date.

Redeeming bonds held in someone else's name or as a minor

If you own a Series EE bond that was issued in someone else's name — for example, a bond your grandparent bought for you — you cannot redeem it yourself. The person whose name appears on the bond must redeem it, or they must sign a power of attorney document authorizing you to do so. This applies to paper bonds only; electronic bonds are tied to the TreasuryDirect account owner.

If you are a minor and own a bond in your own name, you can redeem it at a bank with a parent or guardian present. The bank may require the parent or guardian to sign the redemption form. Once you reach the age of majority in your state (usually 18), you can redeem bonds on your own.

Frequently Asked Questions

Can I redeem a Series EE bond before it reaches face value?

Yes. Series EE bonds are may provide to reach face value in 20 years, but you can redeem them at any time after you own them. If you redeem before the bond reaches face value, you receive whatever it is currently worth. The Treasury Department publishes updated values monthly, so you can check what your bond is worth before you redeem.

What if I redeem a bond and then change my mind?

Once a bond is redeemed, the transaction cannot be reversed. The bond is gone and the funds are in your account. If you want to own savings bonds again, you must purchase new ones through TreasuryDirect or at a bank.

Do I need to report the redemption to the IRS when I cash the bond?

No. You report the interest income on your tax return, but you do not need to file a separate form with the IRS when you redeem. The bank or TreasuryDirect does not report the redemption to the IRS — you are responsible for including the interest on your return.

Can I redeem a Series EE bond at any bank, or only at the bank that issued it?

You can redeem at any bank that offers savings bond redemption services. You do not need to use the bank that originally issued the bond, and you do not need to have an account at that bank, though most banks require you to have an account there to deposit the funds.

What is the difference between the bond's face value and what I actually receive when I redeem?

The face value is the amount printed on the bond, but you do not receive that amount when you redeem. You receive the purchase price plus all accrued interest. For example, a $100 Series EE bond costs $50 to purchase and is worth $100 at maturity, but the interest you earn between purchase and maturity is what makes up the difference.