You can redeem Series EE bonds at your bank, through the Treasury Department, or by mail — but the method depends on whether you own paper bonds or electronic ones
Series EE bonds held in paper form can be cashed at most banks and credit unions without an appointment. Electronic bonds (those bought through TreasuryDirect) must be redeemed online through your TreasuryDirect account. The process takes minutes for electronic bonds and usually the same day for paper bonds, though the bank may hold the funds briefly before crediting your account.
Before you redeem, check whether your bond has reached final maturity. Series EE bonds issued after May 2003 stop earning interest 30 years after purchase. Bonds issued before May 2003 stop earning interest after 40 years. Redeeming after that point makes no difference to your payout, but redeeming before maturity means you forfeit any interest earned in the final months.
Key Takeaways
- Paper Series EE bonds can be cashed at most banks and credit unions; electronic bonds must be redeemed through your TreasuryDirect account online.
- You will owe federal income tax on the interest your bond earned, though you can defer this tax until you redeem or the bond reaches final maturity.
- Series EE bonds issued after May 2003 earn interest for 30 years; bonds issued before May 2003 earn for 40 years.
- If you lose a paper bond, you can request a replacement through the Treasury Department, but the process takes several weeks.
Redeeming paper bonds at a bank or credit union
Walk into any bank or credit union branch with your paper bond and a valid photo ID. The teller will verify the bond's serial number and current value, then issue you a check or deposit the funds directly to your account. Some institutions may require you to have an account with them, though many will cash bonds for non-customers. Call ahead if you are unsure.
The bank calculates what your bond is worth on that day using Treasury tables. Series EE bonds are sold at half their face value — a $100 bond costs $50 — and earn interest monthly. The bank's system looks up the current redemption value based on the bond's issue date and series. You receive that amount in cash or check, minus any applicable state or local taxes if your state taxes savings bond interest.
Bring the physical bond itself. The bank cannot redeem a bond based on a description or a photo. If you have multiple bonds, bring them all and the bank will process them together.
Redeeming electronic 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 the option to redeem and confirm the transaction. The funds will be deposited into the bank account linked to your TreasuryDirect account within one to three business days.
You cannot partially redeem an electronic bond — you must redeem the entire bond at once. If you own multiple electronic Series EE bonds, you can redeem them one at a time or all together, but each bond is an all-or-nothing transaction.
TreasuryDirect shows you the current redemption value before you confirm. This is the amount you will receive, and it includes all interest earned to date.
Understanding the tax consequences
The interest your Series EE bond earned is subject to federal income tax. You do not pay tax when you redeem — instead, you report the interest on your tax return for the year you cash the bond. The bank or Treasury Department does not send you a tax form automatically; you are responsible for calculating the interest earned and reporting it.
To find the interest amount, subtract what you paid for the bond from the redemption value. If you bought a $50 Series EE bond and it is now worth $85, you earned $35 in interest. That $35 is taxable income in the year you redeem.
You have the option to report the interest each year as it accrues, rather than waiting until you redeem. This is called the accrual method and requires filing Form 8818 with your tax return. Most people do not use this method because it creates extra tax work every year, but it can be useful if you expect to be in a lower tax bracket when you redeem than you are now.
Series EE bonds are exempt from state and local income tax in most states. Check your state's tax rules to be certain, but you typically will not owe state tax on the interest.
What to do if you cannot find your paper bond
If you own a paper Series EE bond but cannot locate it, you can request a replacement through the Treasury Department. Contact the Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov and look for the "Lost or Stolen Securities" section. You will need to provide the bond's serial number, issue date, and denomination if you have that information. If you do not have these details, the Treasury can search their records if you provide your Social Security number and the approximate date you purchased the bond.
The replacement process takes four to six weeks. During this time, the bond continues to earn interest. Once the replacement arrives, you can redeem it like any other paper bond.
Redeeming bonds held by a minor
If you own a Series EE bond registered in a child's name, the parent or legal guardian must redeem it on the child's behalf. Bring the bond, your ID, and the child's birth certificate or Social Security card to the bank. The bank will issue the check in the child's name, and the parent or guardian can deposit it into a custodial account or account held in trust for the child.
The interest is taxable income to the child in the year the bond is redeemed. Depending on the child's other income and the amount of interest, you may be able to report it on the child's tax return at a lower tax rate than your own.
Redeeming bonds before they reach face value
Series EE bonds are may provide to double in value within 20 years of purchase. If your bond has not yet reached that point and you redeem it early, you will receive less than you paid for it. For example, a $50 bond purchased five years ago might be worth only $58 today, not the full $100 face value.
The Treasury guarantees the doubling, but only if you hold the bond for the full 20 years. Redeeming before 20 years means you accept whatever the current redemption value is. After 20 years, the bond will be worth at least $100 (if you paid $50), and it will continue earning interest until final maturity.
Frequently Asked Questions
Can I redeem a Series EE bond before it matures?
Yes. You can redeem a Series EE bond at any time after you own it for one year. If you redeem before five years, you forfeit the last three months of interest as a penalty. After five years, there is no penalty, but you receive whatever the current redemption value is, which may be less than face value if the bond is less than 20 years old.
What happens if I redeem a paper bond but the bank says it is not valid?
The bank may reject a bond if it is damaged, if the serial number is illegible, or if the bond has already been redeemed. If you believe the bond is valid, contact the Treasury Department at 844-284-2676 with the bond's details. They can verify whether it is still active and help you resolve the issue.
Do I have to redeem all my Series EE bonds at once?
No. You can redeem one bond, some bonds, or all of them whenever you choose. Each bond is independent, and redeeming one does not affect the others.
Can someone else redeem my Series EE bond if I give them permission?
No. Only the registered owner or a legal representative (such as a parent redeeming a bond in a child's name, or an executor handling an estate) can redeem a Series EE bond. The bank will require ID matching the registered owner's name.
What if my Series EE bond is part of an estate?
The executor or administrator of the estate can redeem the bond by presenting the bond, a copy of the death certificate, and proof of their authority (such as letters testamentary). The redemption value becomes part of the estate's assets and is subject to federal estate tax if the estate is large enough to owe it.