Where and how to redeem an EE bond
You can cash in an EE savings bond at most banks and credit unions, or directly through the U.S. Treasury. The easiest route depends on whether you have the physical bond or hold it electronically.
If you own a paper EE bond, take it to any bank or credit union where you have an account. They will verify the bond, check that it has reached its minimum holding period (one year), and deposit the cash value into your account. Some banks charge a small fee for this service, though many do not — ask before you hand over the bond.
If you own a digital EE bond purchased through TreasuryDirect, you redeem it online through your TreasuryDirect account. Log in, select the bond, and request redemption. The money arrives in your linked bank account within one to two business days.
Key Takeaways
- Paper EE bonds can be cashed at any bank or credit union; digital bonds are redeemed through your TreasuryDirect account online.
- You must hold an EE bond for at least one year before you can cash it in, and you lose the last three months of interest if you redeem it before five years.
- The cash value you receive is the purchase price plus all interest earned, which you can find on the bond itself or in TreasuryDirect.
- Cashing in a bond triggers a tax bill on the interest earned in the year you redeem it, unless you have been reporting the interest annually.
The one-year holding requirement and early redemption penalty
You cannot cash in an EE bond until you have owned it for at least one year. If you try to redeem it before that date, the bank or TreasuryDirect will reject the request.
If you redeem the bond between one and five years of ownership, you lose the last three months of interest. For example, if you cash in a bond after two years, you receive the interest earned in the first 21 months only. After five years, there is no penalty — you receive all interest earned to date.
This penalty exists to discourage early redemption. It does not prevent you from cashing in; it simply reduces what you receive. Calculate what the bond will be worth before you redeem it to decide whether waiting makes sense.
Finding the current value of your bond
For a paper bond, the current value is printed on the bond itself, usually near the bottom. If the printing is faded or unclear, you can look up the value using the Treasury's Savings Bond Calculator on the TreasuryDirect website. You will need the bond's series, denomination, and issue date.
For a digital bond, log into TreasuryDirect and view your account. The current value of each bond appears next to it, updated monthly. This is the amount you will receive if you redeem today.
The value shown is always the purchase price plus interest earned to date. EE bonds purchased after May 2003 earn a fixed interest rate set when you buy them; older bonds earn variable rates that change every six months.
What happens to the interest for taxes
When you cash in an EE bond, the interest you earned becomes taxable income in the year you redeem it. You will receive a Form 1099-INT from the Treasury or your bank showing the total interest earned over the life of the bond.
If you have owned the bond for many years, the interest can be substantial and push you into a higher tax bracket. For example, if you redeem a bond that earned $5,000 in interest, that $5,000 is added to your other income for the year.
One exception: if you have been reporting the interest annually on your tax return as it accrued, you do not report it again when you redeem. This is rare and requires you to have filed a special election with the IRS, but it is worth checking if you have owned bonds for a very long time.
Cashing in bonds held by a minor or in a trust
If the bond is registered in a child's name, a parent or legal guardian must present it at the bank along with proof of guardianship (usually a birth certificate). The parent cannot cash it without the child's name on the account receiving the funds.
If the bond is held in a trust, the trustee must present the bond and a copy of the trust document. Some banks require a certified copy; call ahead to confirm what they need.
If the bond owner has died, the person settling the estate should contact the bank or TreasuryDirect with a death certificate and proof of authority (such as letters testamentary). The bond becomes part of the estate and is subject to estate tax rules.
Replacing a lost or damaged paper bond
If your paper EE bond is lost, stolen, or damaged beyond recognition, you can request a replacement through the Treasury. Contact TreasuryDirect by phone or mail with the bond's series, denomination, and issue date if you have them. You will need to sign an affidavit stating the bond's condition.
The replacement process takes several weeks. During that time, the bond continues to earn interest. Once the replacement arrives, you can cash it in at a bank or through TreasuryDirect as usual.
If the bond is damaged but still readable, most banks will accept it for redemption without replacement. Bring it in and ask; they will tell you whether it is acceptable.
Redeeming bonds at a bank that is not your own
You do not have to use your own bank to cash in a paper EE bond. Any bank or credit union in the United States can redeem it, even if you do not have an account there. However, they may require you to open an account or charge a fee for the service.
Call ahead before you visit. Ask whether they redeem savings bonds, whether you need an account, and whether there is a fee. Some banks have stopped offering this service, so confirming saves a wasted trip.
If you cannot find a bank willing to redeem your bond, you can mail it directly to the Treasury. Contact TreasuryDirect for the current mailing address and instructions.
Frequently Asked Questions
Can I cash in part of a bond and keep the rest?
No. When you redeem a savings bond, you redeem the entire bond. You cannot split it or cash in a portion. If you own multiple bonds, you can choose which ones to redeem and leave others untouched.
What if I lost the paper bond but remember buying it?
Contact TreasuryDirect with as much information as you have: the approximate purchase date, the amount you paid, and the series if you remember it. They can search their records and help you replace it or redeem it directly.
Do I have to report the interest when I cash in the bond?
Yes, unless you have been reporting it annually. The bank or Treasury will send you a Form 1099-INT showing the interest earned. You must include this on your tax return for the year you redeem the bond.
Can I cash in an EE bond at a credit union?
Yes. Most credit unions offer the same bond redemption service as banks. Call your credit union first to confirm they redeem savings bonds and ask about any fees.
What if the bond is worth less than I paid for it?
EE bonds cannot be worth less than you paid. They are may provide to reach face value in 20 years. If you redeem before that, you receive at least what you paid, plus any interest earned. The three-month interest penalty only applies if you redeem between one and five years.