You can redeem Series EE bonds through your bank, a credit union, or directly through TreasuryDirect, depending on how you own them

The method depends on whether your bonds are paper certificates or digital accounts. Paper bonds go to your bank or credit union; digital bonds stay within TreasuryDirect, the Treasury Department's online system. Either way, you'll need to prove you own them and provide identification. The process takes a few days to a few weeks, and you'll receive a check or direct deposit for the current value.

Redeeming early costs you money—Series EE bonds held less than five years lose three months of interest. After five years, you keep all accrued interest. If you hold them for 20 years or longer, they continue earning interest at the original rate, so the timing of when you cash them matters to your total payout.

Key Takeaways

  • Paper Series EE bonds are redeemed at a bank or credit union; digital bonds are redeemed through TreasuryDirect online.
  • You will need the bond certificate (for paper) or your TreasuryDirect login, plus a government-issued ID.
  • Bonds cashed before five years lose three months of interest; after five years you receive the full accrued amount.
  • The redemption process takes three to seven business days for banks and one to two business days for TreasuryDirect.

Redeeming paper Series EE bonds at a bank or credit union

Take your physical bond certificate and a government-issued ID to any bank or credit union. You do not have to use your own institution—most banks will redeem Treasury bonds for customers and non-customers alike, though some credit unions limit redemptions to members. Call ahead to confirm they handle bond redemptions and ask whether they charge a fee (most do not, but some charge $5 to $15).

The teller will verify the bond's serial number, check that you are the registered owner or authorized representative, and confirm the current value using Treasury Department tables. You'll sign the back of the certificate and receive a check or direct deposit, usually within three to seven business days. If the bond is registered to two people, both must be present or one must have power of attorney.

Redeeming digital Series EE bonds through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to "ManageDirect," select the bonds you want to redeem, and choose your redemption method—direct deposit to your bank account or a check mailed to your address. Direct deposit is faster and more secure.

The redemption posts to your account immediately, and the funds arrive in your bank account within one to two business days if you choose direct deposit. If you request a check, allow five to seven business days for delivery. You can redeem part of your holdings or all of them in a single transaction.

What happens if you redeem before five years

Series EE bonds redeemed before the five-year mark lose three months of interest. This penalty applies regardless of how long you've held them—whether you cash a bond after one month or four years and eleven months, you forfeit the same three months of earnings. The Treasury calculates your payout as the principal plus accrued interest minus the three-month penalty.

For example, if a bond's current value is $5,150 and you redeem it at four years, you receive $5,000 (the principal) plus the accrued interest minus three months' worth. After the five-year mark, there is no penalty, and you receive the full current value.

Tax reporting when you redeem Series EE bonds

You owe federal income tax on the interest your bond earned, but only in the year you redeem it. The Treasury does not withhold tax automatically—you report the interest on your tax return. If you redeemed bonds in the past year, the bank or TreasuryDirect will send you a Form 1099-INT showing the interest amount.

You do not owe state or local income tax on Series EE bond interest. If you used the bond to pay for may have access to education expenses, you may be able to exclude some or all of the interest from federal tax, but you must report the redemption and claim the exclusion on your return. Keep your redemption records and the 1099-INT together.

What to do if you lost the paper bond certificate

Contact the Treasury Department's Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov to report a lost or destroyed bond. You'll need to provide the bond's serial number, issue date, and denomination if you have them. If you don't have that information, provide as much detail as you can about when and where you bought it.

The Treasury will research the bond in their records and issue a replacement certificate or allow you to redeem it directly. The process takes several weeks. In the meantime, the bond continues to earn interest, so there's no penalty for the delay in reporting it lost.

Redeeming bonds held by a deceased owner

If the bond is registered in one name only, the estate must go through probate before redemption, or the executor must present a court order showing authority to act. If the bond is registered as "payable on death" (POD) to a named beneficiary, that person can redeem it by providing a death certificate and proof of identity—no probate required.

For digital bonds in TreasuryDirect, contact the Bureau of the Fiscal Service with a death certificate and documentation of your relationship to the deceased. They will transfer the bond to your account or redeem it and send the proceeds to the estate. Paper bonds follow the same process through a bank or the Treasury.

Frequently Asked Questions

Can I redeem only part of a Series EE bond?

No. Series EE bonds are redeemed as whole units—you cannot cash in a portion of a single bond. If you own multiple bonds, you can choose which ones to redeem and leave others untouched. Digital bonds in TreasuryDirect allow you to select individual bonds from your account.

What if my bank says they won't redeem my bond?

Some smaller banks or credit unions do not handle Treasury bond redemptions. Try another bank in your area, or redeem through TreasuryDirect if your bonds are digital. If your bonds are paper and you cannot find a bank nearby, contact the Bureau of the Fiscal Service at 844-284-2676 for a mail-in redemption form.

Do I have to redeem all my bonds at once?

No. You can redeem one bond, several bonds, or all of them in separate transactions over time. Each redemption is treated independently for the five-year penalty rule, so a bond held four years loses interest if redeemed, while another held six years does not.

What if I need the money before five years but want to avoid the penalty?

You cannot avoid the three-month interest penalty if you redeem before five years. Your only option is to wait until the five-year mark. If you need cash urgently, consider other sources—a personal loan, credit line, or selling other assets—rather than taking the penalty hit on your bonds.