Where to redeem your EE savings bonds

You can redeem EE savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury's TreasuryDirect website. The easiest route depends on whether you have the physical paper bonds or electronic bonds held in a TreasuryDirect account.

If you have paper bonds, walk into any bank or credit union where you have an account and ask to redeem them. You do not need to be a customer of that specific institution — many will redeem bonds for non-customers, though some charge a small fee. Call ahead if you want to confirm they redeem bonds and whether there are any restrictions.

If your bonds are electronic (held in TreasuryDirect), you log into your account online and request the redemption there. The money goes into the bank account you have linked to your TreasuryDirect account, usually within a few business days.

Key Takeaways

  • Paper EE bonds can be redeemed at most banks and credit unions; electronic bonds are redeemed through your TreasuryDirect account online.
  • You must wait at least one year after purchase before redeeming an EE bond, and you will lose the last three months of interest if you redeem before five years have passed.
  • Bring the physical bonds and a valid ID to your bank; the teller will verify the bonds and process the redemption on the spot.
  • The IRS will send you a Form 1099-INT the year you redeem if the bond earned $10 or more in interest, and you owe federal income tax on that interest.

Timing rules: when you can redeem

You can redeem an EE savings bond as early as one year after you buy it. However, if you redeem before the bond has been held for five years, you lose the last three months of interest. This penalty applies no matter when you redeem during that first five years.

For example, if you bought a bond on January 15, 2020, and redeem it on January 20, 2021 (just over one year later), you receive the interest earned through October 15, 2020 — not through January 20, 2021. If you wait until January 15, 2025 (five years), you get all the interest with no penalty.

After five years, you can redeem at any time without losing interest. EE bonds stop earning interest after 30 years, so there is no reason to hold them longer than that.

What to bring when redeeming paper bonds

Bring the physical bonds themselves and a valid government-issued ID (driver's license, passport, or state ID card). The bank teller will examine the bonds to confirm they are genuine, check that they have not already been redeemed, and verify your identity.

If you are redeeming bonds that belong to someone else — for example, bonds your parent bought for you when you were a child — bring both your ID and proof that you are the registered owner. This is usually the bond certificate itself, which shows your name. If the bond is registered to a minor and you are the parent or guardian, bring your ID and the child's birth certificate or Social Security card.

If you have lost a bond or it is damaged, you cannot redeem it at a bank. You will need to contact the Treasury Department directly to request a replacement or file a claim.

How the redemption works at the bank

Walk up to the teller window and tell them you want to redeem savings bonds. Hand over the bonds and your ID. The teller will examine each bond, check the serial number in their system to confirm it has not already been cashed, and verify that you are the registered owner.

The teller will calculate the redemption value based on the bond's issue date, current date, and the interest rate that bond earned. They will then give you the cash or deposit it into your account at that bank. If you are not a customer of that bank, they may issue you a check instead, which you can deposit elsewhere.

The whole process usually takes 10 to 15 minutes. Some banks may ask you to come back the next business day if they need to verify the bonds through their system first, but this is uncommon.

Redeeming bonds through TreasuryDirect online

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage Direct" section and select the bonds you want to redeem. You can redeem one bond or multiple bonds at once.

Review the redemption value shown on the screen — this includes all interest earned to date, minus the three-month penalty if the bond is less than five years old. Confirm the bank account where you want the money deposited. This must be the same account linked to your TreasuryDirect profile.

Submit the redemption request. The money will arrive in your linked bank account within one to three business days. You will receive a confirmation email from TreasuryDirect showing the redemption date and amount.

Tax reporting and what you owe

When you redeem an EE bond, you owe federal income tax on the interest the bond earned. You do not owe tax on the original amount you paid — only on the earnings.

If the bond earned $10 or more in interest, the Treasury Department will send you a Form 1099-INT in January of the year after you redeem. You report this interest on your federal tax return as ordinary income. The interest is subject to federal income tax but not Social Security or Medicare tax.

You do not owe state or local income tax on EE bond interest, even if your state has an income tax. This is one of the few tax advantages of savings bonds.

If you redeem multiple bonds in the same year, the interest from all of them will be combined on a single Form 1099-INT. Keep your redemption receipts so you can match them to the 1099-INT when it arrives.

What happens if you cannot find your bonds

If you have paper bonds but cannot locate them, contact the Treasury Department's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov. You will need to provide the bond serial numbers if you have them, or details about when and where you purchased the bonds.

The Treasury Department can search their records to confirm whether the bonds have been redeemed. If they have not been cashed, you can file a claim for a replacement bond. This process takes several weeks and requires documentation of your ownership.

If your bonds are in a TreasuryDirect account and you have forgotten your login information, use the "Forgot Username" or "Forgot Password" option on the TreasuryDirect website. You will need to verify your identity using your Social Security number and other personal information.

Frequently Asked Questions

Can I redeem part of a bond, or do I have to cash the whole thing?

You must redeem the entire bond. You cannot split a single bond into smaller amounts. If you have multiple bonds, you can choose which ones to redeem and leave the others untouched.

What if my bank says they do not redeem savings bonds?

Some smaller banks or credit unions do not offer this service. Try another bank in your area, or redeem through TreasuryDirect if your bonds are electronic. For paper bonds, you can also mail them to the Treasury Department with a redemption form, though this takes longer.

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

No. EE savings bond interest is exempt from state and local income tax. You only owe federal income tax on the earnings.

What if I inherited EE bonds from someone who died?

You can redeem inherited bonds, but you may owe income tax on the interest that accumulated before the original owner died. Consult a tax professional or the IRS about your specific situation, as the rules depend on when the bonds were purchased and how the estate was handled.

How long does it take to get my money after I redeem?

At a bank, you usually get cash or a deposit the same day. Through TreasuryDirect, the money arrives in your linked bank account within one to three business days.