You can cash Series EE bonds at most banks, credit unions, or directly through the U.S. Treasury

Series EE bonds don't have a maturity date where the money automatically arrives in your account. You have to actively cash them in. The simplest route is to walk into your bank or credit union with the physical bonds and your ID, and they'll process the redemption on the spot—usually within a few business days. If you bought your bonds through TreasuryDirect (the government's online system), you can also redeem them there without leaving home, though the process takes longer.

The amount you receive depends on when you bought the bond and how long you've held it. Series EE bonds purchased after May 2003 are may provide to double in value after 20 years, but they continue earning interest for up to 30 years total. If you cash in before 20 years have passed, you'll get less than the face value. If you hold past 20 years, you keep earning interest on top of the doubled amount.

One important rule: if you cash in a Series EE bond less than five years after you bought it, the Treasury deducts the last three months of interest as a penalty. So a bond you bought 18 months ago will lose three months' worth of earnings when you redeem it. After five years, there's no penalty—you get all the interest you've earned.

Key Takeaways

  • Banks and credit unions can cash Series EE bonds immediately if you bring the physical bond and a government-issued ID.
  • TreasuryDirect redemptions take five to seven business days to reach your bank account, but you don't have to leave home.
  • Cashing in before five years costs you the last three months of interest; after five years, there is no penalty.
  • The amount you receive increases the longer you hold the bond, with a may provide doubling at 20 years and continued growth through year 30.
  • You'll owe federal income tax on the interest you earned, but not state or local tax, and you can report it all in the year you cash it or spread it across years if you prefer.

Cashing bonds at a bank or credit union

This is the fastest method. Bring your Series EE bond in its physical form, your government-issued ID (driver's license, passport, or state ID), and go to any bank or credit union branch. You don't have to use your own bank—most financial institutions will cash savings bonds for anyone. Tell the teller you want to redeem the bond.

The teller will verify the bond's serial number and your identity, then process the redemption. You'll receive a check or a deposit to an account at that bank within a few business days. Some banks deposit directly to your account on the same day if you're a customer there. Ask the teller about their specific timeline when you arrive.

If you have multiple bonds, you can cash them all at once. Bring them all together with your ID, and the teller will process each one. There's no limit to how many you can redeem in a single visit.

Redeeming bonds through TreasuryDirect online

If you own bonds through TreasuryDirect—the Treasury's website where you can buy and manage bonds electronically—you can redeem them without going anywhere. Log into your TreasuryDirect account, navigate to the "Manage My Securities" section, and select the bonds you want to cash in. Confirm the redemption, and the Treasury will process it.

The money goes directly to the bank account you have linked to your TreasuryDirect account. The transfer takes five to seven business days. You'll receive a confirmation email once the redemption is submitted and another when the funds arrive.

TreasuryDirect redemptions are useful if you own many bonds or if you want to avoid a trip to the bank. The tradeoff is the wait time—you won't have the money immediately like you would at a physical bank.

Understanding the five-year penalty and when it applies

Series EE bonds have a penalty for early redemption, but only in the first five years. If you cash in a bond before it reaches its five-year anniversary, the Treasury withholds the last three months of interest you earned. This is not a percentage of your total earnings—it's specifically three months' worth.

For example, if you bought a bond 18 months ago and it has earned $50 in interest, you'll lose about $12.50 (three months of that interest) when you redeem it. You'll receive the original purchase price plus the remaining $37.50 in interest.

After the bond reaches five years old, there is no penalty. You get every dollar of interest you've earned, no matter when you redeem it. This is why many people wait at least five years before cashing in Series EE bonds—the penalty disappears entirely.

How the value grows and what you'll receive

Series EE bonds purchased after May 2003 are sold at face value—you pay $50 for a $100 bond, for example. They earn a fixed interest rate set by the Treasury every six months. The rate changes on May 1 and November 1 each year, and it applies to all new bonds purchased in that period.

The bond is may provide to reach its face value (double your purchase price) after 20 years, even if interest rates are very low. If you redeem at exactly 20 years, you'll have your original $50 investment turned into $100. If you hold longer, the bond keeps earning interest on top of that $100 through year 30, when it stops earning.

If you redeem before 20 years, you'll get less than face value. The exact amount depends on how long you've held it and the interest rate that was in effect when you bought it. You can check the current value of any Series EE bond on the TreasuryDirect website by entering the bond's series, denomination, and issue date.

Tax reporting when you cash in your bonds

The interest you earn on Series EE bonds is subject to federal income tax, but not state or local tax. You have two choices for when to report it: you can report all the interest in the year you redeem the bond, or you can report the interest each year as it accrues (even though you haven't cashed it in yet).

Most people choose to report it all in the redemption year because it's simpler—you only deal with it once. When you redeem, the bank or TreasuryDirect will send you a Form 1099-INT showing how much interest you earned. You'll include this on your tax return.

If you're redeeming a large number of bonds with significant interest, talk to a tax professional about whether spreading the income across multiple years makes sense for your situation. Some people do this to stay in a lower tax bracket.

What to do if you've lost a physical bond

If you have a physical Series EE bond but you've lost the actual certificate, you can still redeem it. Contact the Treasury's Savings Bond Division at 844-284-2676 or visit the TreasuryDirect website. You'll need to provide the bond's series, denomination, and issue date—information you may have in old paperwork or bank records.

The Treasury can look up the bond in their system and issue a replacement certificate or process the redemption directly. This takes longer than a normal redemption (several weeks), so start the process as soon as you realize the bond is missing.

If you bought the bond through TreasuryDirect, you don't have a physical certificate to lose—it exists only in your online account, so this isn't a concern.

Frequently Asked Questions

Can I cash in a Series EE bond before it reaches 20 years?

Yes. You can redeem at any time after you've owned it for at least one year. If you redeem before five years, you lose the last three months of interest. After five years, there's no penalty, but you'll still receive less than the face value if you haven't reached the 20-year mark yet.

What happens if I cash in a bond right at the five-year mark?

You avoid the penalty. The penalty applies only if you redeem before the five-year anniversary. On the day it turns five years old or any day after, you get all your interest with no deduction.

Do I need to cash all my bonds at the same time?

No. You can redeem some bonds and keep others. Each bond is independent, so you can choose which ones to cash based on how long you've held them and whether you need the money.

Will the bank charge me a fee to cash in my bond?

No. Banks and credit unions don't charge a fee to redeem savings bonds. The Treasury doesn't charge a fee either if you redeem through TreasuryDirect. The only cost is the interest penalty if you redeem within five years.

What if I want to reinvest the money into new Series EE bonds?

You can buy new Series EE bonds through TreasuryDirect with the proceeds from your redemption. You can purchase up to $10,000 per calendar year through TreasuryDirect. If you want to buy more, you can purchase paper bonds through your tax refund, though this option is limited.