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 come in two forms: paper certificates you hold physically, and electronic bonds stored in an account at TreasuryDirect. How you cash them in depends on which type you own. Paper bonds can be redeemed at most banks and credit unions, while electronic bonds must be redeemed through your TreasuryDirect account online. Either way, you'll receive the current value of the bond — the original purchase price plus all interest earned — in a single payment.

You can redeem a Series EE bond any time after you've owned it for one year. If you cash it in before five years have passed, you'll lose the last three months of interest as a penalty. After five years, there's no penalty, and you can redeem without losing any earnings. The bond will stop earning interest 30 years after you bought it, so there's no benefit to holding it longer than that.

Key Takeaways

  • Paper Series EE bonds can be cashed at most banks and credit unions by bringing the bond certificate and a valid ID; electronic bonds are redeemed online through your TreasuryDirect account.
  • You must own the bond for at least one year before you can redeem it, and redeeming before five years costs you the last three months of interest.
  • The redemption value equals your purchase price plus all interest earned to date, and you receive the full amount in one payment.
  • If you've lost a paper bond certificate, you can request a replacement from the Treasury Department, though the process takes several weeks.
  • Series EE bonds stop earning interest after 30 years, so holding them beyond that point provides no additional value.

Redeeming paper bonds at a bank or credit union

Most banks and credit unions will cash paper Series EE bonds for you in person. Bring the bond certificate itself, a valid photo ID, and your Social Security number. The teller will verify the bond's current value using Treasury Department records, calculate any interest penalty if you're redeeming before five years, and issue you a check or deposit the funds directly into your account.

Not every branch handles savings bond redemptions, so call ahead to confirm. Some larger banks process them routinely; smaller branches or credit unions may need to send the bond to a processing center, which can add a few days. If the bank won't redeem it, you can always go to another bank — any financial institution can process the redemption.

If the bond is registered in two names (joint ownership), both owners typically need to be present and sign the redemption form. If one owner has died, you'll need to bring a death certificate and may need to work with the bank's trust department to process the redemption properly.

Redeeming electronic bonds through TreasuryDirect

Electronic Series EE bonds live in your TreasuryDirect account, a free online portal run by the U.S. Department of the Treasury. To redeem one, log into your account at treasurydirect.gov, navigate to the bond you want to cash, and select the redemption option. You'll see the current value displayed before you confirm.

Once you submit the redemption request, the funds are typically deposited into the bank account linked to your TreasuryDirect account within one to two business days. You don't need to visit a bank or mail anything — the entire process happens online. If you need to change the bank account where the money goes, you can update that information in your TreasuryDirect settings before you redeem.

If you've forgotten your TreasuryDirect password, you can reset it using your email address. If you no longer have access to the email address associated with your account, contact the TreasuryDirect customer service line at 844-284-2676 to regain access before attempting to redeem.

What happens if you've lost your paper bond certificate

A lost or damaged paper Series EE bond can be replaced, but the process is slower than a normal redemption. You'll need to file a claim with the Treasury Department's Bureau of the Fiscal Service. You can start this by contacting them at 844-284-2676 or visiting treasurydirect.gov and selecting the lost bond option.

You'll need to provide as much information as you can remember: the approximate purchase date, the purchase price, the series (EE), and the state where you bought it. If you have any documentation — old bank statements, gift letters, or photos of the certificate — include that. The Treasury Department will search their records to confirm the bond exists under your Social Security number.

Once your claim is approved, you can request either a replacement certificate (which you'd then redeem at a bank) or a direct redemption payment. A direct payment is usually faster. The entire process typically takes four to eight weeks, depending on how complete your information is and how busy the department is.

Understanding the interest penalty for early redemption

Series EE bonds earn interest every month, but that interest is only may provide if you hold the bond for five years. If you redeem between one and five years of ownership, you forfeit the last three months of interest you've earned. This is a fixed penalty — it doesn't matter whether you redeem at year one or year four; you always lose the same three months.

For example, if you bought a $100 Series EE bond five years ago and it's now worth $110, you've earned $10 in interest. If you redeem it at year four and nine months, you lose three months of interest — perhaps $0.75 — and receive $109.25 instead. After the five-year mark, there's no penalty, and you get the full current value.

This penalty applies whether you redeem at a bank, through TreasuryDirect, or by mail. There's no way to avoid it if you cash in before five years. If you're close to the five-year anniversary, it's often worth waiting a few weeks to avoid the penalty, since the interest you'd lose is usually small.

Redeeming bonds by mail if you can't visit a bank

If you can't get to a bank in person and you own paper bonds, you can redeem them by mail. Send the bond certificate, a completed Form PD 1522 (the redemption form), a copy of your photo ID, and a letter stating your request to the Treasury Department's address. You can download Form PD 1522 from treasurydirect.gov.

Mail your package to the Bureau of the Fiscal Service, Parkersburg, WV 26106-1328. Include a return address and specify whether you want the redemption check mailed to you or deposited into a bank account. If you choose direct deposit, include your bank's routing number and your account number.

Processing by mail takes longer than in-person redemption — typically three to four weeks from the date they receive your package. Send it via certified mail with return receipt so you have proof of delivery. Keep a copy of everything you send for your records.

Tax reporting when you redeem Series EE bonds

The interest you earn on Series EE bonds is subject to federal income tax, but not state or local income tax. You have two choices about when to report and pay tax on that interest: you can report it every year as it accrues, or you can wait and report all the interest when you redeem the bond.

Most people choose to report the interest only when they cash the bond in, since that's simpler. When you redeem, the financial institution or Treasury Department will send you a Form 1099-INT showing the interest earned. You'll report that amount on your federal tax return for the year you redeemed the bond.

If you're redeeming a bond that was a gift or inherited, the tax situation is the same — you owe tax on the interest earned after you received it, not on interest earned before. Keep records of when you received the bond so you can calculate the correct taxable amount if needed.

Frequently Asked Questions

Can I redeem a Series EE bond before one year has passed?

No. Series EE bonds have a one-year holding requirement. You cannot redeem them before that date, even if you need the money urgently. After one year, you can redeem at any time, though you'll lose three months of interest if you cash it in before five years of ownership.

What if my Series EE bond is worth less than I paid for it?

Series EE bonds are may provide to be worth at least the purchase price after 20 years, even if interest rates have fallen. If you redeem before 20 years and the bond hasn't earned enough interest to match your purchase price, you'll receive your original purchase price, not less. This may provide is built into the bond.

Can I redeem only part of a Series EE bond?

No. Series EE bonds are redeemed as a whole unit. You receive the full current value of the bond or nothing. You cannot split a bond or redeem a portion of it.

What if I inherited a Series EE bond from someone else?

You can redeem an inherited bond, but you'll need to provide proof that you're the rightful heir or beneficiary. This usually means a death certificate and documentation showing you're named in the will or are the legal heir. Contact the bank or TreasuryDirect with the bond details and they'll tell you what paperwork they need.

Do I have to redeem all my Series EE bonds at once?

No. You can redeem individual bonds on your own schedule. If you own multiple bonds, you can cash in one, some, or all of them whenever you choose, as long as each bond has been held for at least one year.