You can cash EE bonds at your bank, through the Treasury Department, or by mail — but the method depends on whether you own the physical bond or the digital version

EE bonds come in two forms: paper bonds you hold in your hand, and digital bonds stored in TreasuryDirect, the government's online system. How you cash them in depends on which type you own. Paper bonds can be redeemed at most banks and credit unions, or mailed to the Treasury. Digital bonds must be redeemed through your TreasuryDirect account online. Either way, you'll need to wait until the bond has reached final maturity or you'll lose some of the interest you've earned.

The process itself is straightforward and takes a few days to a few weeks depending on your method. You won't owe federal income tax on the interest until you actually cash the bond in, which is one reason people sometimes hold them longer than they need to. The Treasury will send you a 1099-INT form for tax purposes once you redeem.

Key Takeaways

  • Paper EE bonds can be cashed at your bank or credit union, or mailed directly to the Treasury; digital bonds must be redeemed through your TreasuryDirect account online.
  • You can cash a bond before it reaches final maturity, but you'll forfeit the last three months of interest as a penalty.
  • The Treasury will issue a 1099-INT tax form when you redeem, reporting the interest you earned.
  • Cashing in at your bank is usually the fastest method for paper bonds and requires only your bond and a form of ID.

Cashing paper bonds at your bank or credit union

Most banks and credit unions will cash paper EE bonds for you on the spot. Bring the physical bond and a government-issued ID — a driver's license or passport works. The teller will verify the bond's current value using Treasury tables, then issue you a check or deposit the funds directly into your account if you have one there.

Call ahead to confirm your specific bank handles bond redemptions, since some smaller institutions don't. Large national banks like Bank of America, Wells Fargo, and Chase all do this routinely. The process takes minutes, and you'll walk out with your money the same day.

If the bond is registered to someone else or held in a trust, you may need additional documentation — a power of attorney, a death certificate, or trust papers. Ask the bank what they need before you go in.

Redeeming bonds through TreasuryDirect online

If your EE bonds are digital and stored in TreasuryDirect, you log into your account at treasurydirect.gov, navigate to the bond you want to redeem, and request the redemption. The funds will be deposited into the bank account you have on file with TreasuryDirect, usually within one to three business days.

You'll need your TreasuryDirect login credentials and access to the email address associated with your account. The system will ask you to confirm the redemption, and you can't undo it once you submit, so double-check the bond and the amount before you proceed.

This method is the fastest for digital bonds and requires no paperwork or trips to a bank. You can do it from home at any time of day.

Mailing paper bonds to the Treasury

If you can't get to a bank or prefer to work directly with the government, you can mail your paper bonds to the Bureau of the Fiscal Service. Send the bond, a completed FS Form 1522 (Request for Redemption of Series EE Savings Bonds), a copy of your ID, and a letter stating the amount you want to redeem to the address listed on the Treasury's website.

Include a self-addressed, stamped envelope or provide banking details so the Treasury can deposit the funds directly. Processing by mail typically takes four to six weeks. The Treasury will send you a 1099-INT form and confirmation of the redemption.

This method is slower but works if you live far from a bank or prefer not to visit in person. Keep a copy of everything you send for your records.

The early redemption penalty and when it applies

EE bonds reach final maturity at 30 years, but you can redeem them before that. If you cash in a bond less than five years after you bought it, you'll lose the last three months of interest. After five years, there's no penalty — you get all the interest earned up to the redemption date.

For example, if you bought a bond in January 2020 and cash it in January 2024, you've held it for four years. You'll forfeit the interest from October 2023 through December 2023. If you wait until January 2025 (five years), you keep all the interest.

Check your bond's purchase date before you redeem. The penalty is automatic and applies whether you redeem at a bank or through TreasuryDirect.

What happens to the interest for tax purposes

You don't owe federal income tax on EE bond interest until you redeem the bond. This is one reason people sometimes hold bonds longer than necessary — they can defer the tax bill. When you finally cash in the bond, the Treasury reports the total interest earned on a 1099-INT form, and you'll owe tax on that amount in the year you redeem.

State and local income tax rules vary. Some states don't tax bond interest at all; others do. Check your state's tax rules or ask a tax professional if you're unsure.

If you're redeeming a large number of bonds or a bond with a lot of accumulated interest, consider spreading the redemptions across two tax years to avoid a big tax hit in a single year. You have control over when you cash them in, so you can time it strategically.

Bonds registered to a deceased owner or held in trust

If the bond owner has died, the person redeeming it will need to provide a death certificate and proof that they have the legal right to the funds — either as the named beneficiary, executor of the estate, or heir. Banks will ask for these documents before they'll process the redemption.

Bonds held in a trust can be redeemed by the trustee or the person named to manage the trust. Bring the trust document or a certified copy of it, along with your ID. Some banks may ask for additional paperwork to verify your authority.

If you're unsure whether you have the legal right to redeem a bond, contact the bank or the Treasury before you try. They can tell you what documentation you'll need.

Frequently Asked Questions

Can I cash in an EE bond before it reaches 30 years?

Yes. You can redeem an EE bond at any time after you've owned it, but if you cash it in before five years have passed, you'll lose the last three months of interest. After five years, there's no penalty.

What if I lost my paper bond?

Contact the Treasury directly. You can file a claim for a lost or destroyed bond by submitting FS Form 1048 and proof of ownership. The process takes several weeks, and you'll need to provide details like the bond's serial number and purchase date if you have them.

Do I have to redeem all my bonds at once?

No. You can redeem one bond, some of your bonds, or all of them whenever you want. Each redemption is separate, and you can spread them out over time if that works better for your tax situation.

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

At a bank, you get cash or a deposit the same day. Through TreasuryDirect, one to three business days. By mail to the Treasury, four to six weeks.

Will I owe taxes on the interest right away?

No. You owe federal income tax on the interest in the year you redeem the bond, not before. The Treasury will send you a 1099-INT form showing the interest earned, and you'll report it on your tax return for that year.