Where to cash your Series EE bonds
You can cash Series EE bonds at most banks and credit unions, or directly through the U.S. Treasury. The easiest route depends on whether your bonds are paper or digital.
If you hold paper bonds, take them to any bank or credit union where you have an account. You do not need to be a customer of that institution — most will cash them anyway, though some may charge a small fee. Bring the bonds and a form of ID. The teller will verify the bonds are genuine, check that you meet the holding requirements, and deposit the cash into your account or give it to you on the spot.
If your bonds are digital (held in TreasuryDirect, the Treasury's online system), you redeem them through your TreasuryDirect account. Log in, select the bonds you want to cash, and request the redemption. The money goes directly to your linked bank account within a few business days.
Key Takeaways
- Paper Series EE bonds can be cashed at any bank or credit union; digital bonds are redeemed through your TreasuryDirect account online.
- Series EE bonds must be held for at least one year before you can cash them, and you lose the last three months of interest if you cash them before five years.
- You will receive the full face value plus all accrued interest when you redeem, with no penalty after the five-year mark.
- If you lose a paper bond, contact the Treasury's Bureau of the Fiscal Service to report it and request a replacement.
The one-year and five-year rules
Series EE bonds have two important timing rules that affect when and how much you get back. You cannot cash them at all until you have held them for at least one year. If you try to redeem before that, the bank or Treasury will reject the request.
If you cash the bond between one and five years, you lose the last three months of interest. For example, if you bought a bond 18 months ago and it has earned $50 in interest, you will receive only $33.33 (the first 15 months of interest). After five years, there is no penalty — you get the full amount owed, including all accrued interest.
The five-year rule is why many people hold Series EE bonds longer than they initially planned. If you think you might need the money within five years, consider whether a bond is the right choice for you.
What you will receive when you redeem
When you cash a Series EE bond, you receive the face value (the amount printed on the bond or shown in TreasuryDirect) plus all the interest it has earned up to the redemption date. Series EE bonds are sold at half their face value — you pay $50 for a $100 bond — so your first redemption will be at least double what you paid.
The interest rate on Series EE bonds is set by the Treasury and changes every six months. You can check the current rate and the rate your specific bond earns on the TreasuryDirect website or by calling the Treasury at 1-800-553-2663. The interest compounds semiannually, meaning it is added to the bond twice a year and then earns interest itself.
There is no federal tax withheld when you redeem. However, you will owe federal income tax on the interest portion when you file your tax return that year. State and local taxes may also apply depending on where you live.
Cashing paper bonds at a bank
Bring your paper bond and a government-issued ID to the teller window. The bank will examine the bond to confirm it is genuine and check that the serial number has not been reported as lost or stolen. This usually takes a few minutes.
The teller will then verify that the bond meets the one-year holding requirement by checking the issue date printed on it. If everything is in order, they will process the redemption. You can receive the cash immediately or have it deposited into your account. Some banks may require you to endorse the back of the bond before they process it.
If the bank cannot verify the bond or suspects it is counterfeit, they will refuse to cash it and may contact the Treasury. This is rare with legitimate bonds but can happen if a bond is damaged or the printing is unclear.
Redeeming bonds through TreasuryDirect
Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and find the Series EE bonds you want to redeem. Click on the bond and select "Redeem" or "Redeem at Maturity" depending on the option shown.
Confirm the redemption amount — TreasuryDirect will show you the face value plus accrued interest. The system will check automatically that the bond has been held for at least one year and will apply the three-month interest penalty if needed. Once you confirm, the redemption is submitted.
The Treasury processes TreasuryDirect redemptions within one to three business days and deposits the money into the bank account you have linked to your TreasuryDirect account. You will receive an email confirmation with the transaction details.
What to do if your paper bond is lost or damaged
If you lose a paper Series EE bond, contact the Bureau of the Fiscal Service at 1-844-284-2676 or visit treasurydirect.gov. You will need to provide the bond's serial number (if you have it), the issue date, and the face value. The Treasury will search their records to confirm the bond exists and has not already been cashed.
Once verified, the Treasury can issue a replacement bond or process a redemption directly to your bank account. The process typically takes four to six weeks. If the bond has matured (reached 30 years old), the Treasury will redeem it and send you the full value plus all accrued interest.
If your bond is damaged but still readable, most banks will still cash it. If the damage is severe enough that the serial number or issue date cannot be read, bring it to a bank first — they may be able to process it anyway. If the bank refuses, contact the Treasury using the number above.
Tax reporting when you redeem
The interest you earn on Series EE bonds is subject to federal income tax. You do not have to report it every year — you can wait until you redeem the bond and report all the accumulated interest in that year. This is called the "deferral method" and is the most common approach.
When you redeem, the bank or Treasury will not send you a tax form automatically. You are responsible for calculating the interest earned and reporting it on your federal tax return (Form 1040) in the year you cash the bond. If you are unsure how much interest you earned, TreasuryDirect shows the current value of each bond, and paper bonds can be valued at treasurydirect.gov by entering the series, denomination, and issue date.
Some people choose to report the interest every year instead of waiting until redemption. This can be useful if you are in a lower tax bracket in early years. If you choose this method, you must report it consistently every year — you cannot switch back and forth.
Frequently Asked Questions
Can I cash a Series EE bond before one year?
No. The Treasury requires a one-year holding period before any Series EE bond can be redeemed. If you try to cash it before that, the bank or TreasuryDirect will reject the request. Plan accordingly if you think you might need the money sooner.
What happens if I cash my bond between one and five years?
You lose the last three months of interest. For example, a bond held for two years will pay interest for only 21 months. After five years, there is no penalty and you receive the full amount owed.
Do I need to pay taxes when I redeem?
No tax is withheld at redemption, but you owe federal income tax on the interest portion when you file your tax return. You report the interest in the year you cash the bond. State and local taxes may also apply depending on your location.
What if my bank will not cash my paper bond?
Try another bank or credit union — most will cash Series EE bonds even if you do not have an account there. If multiple banks refuse, contact the Treasury at 1-844-284-2676 to report the issue and request a direct redemption to your bank account.
How long does it take to get my money after I redeem?
Paper bonds cashed at a bank are usually processed immediately or within one business day. TreasuryDirect redemptions take one to three business days to reach your linked bank account. Lost or damaged bonds reported to the Treasury take four to six weeks to process.