Where and how to redeem your EE bonds

You redeem EE bonds through TreasuryDirect, the U.S. Department of the Treasury's online platform where most EE bonds are held today. If your bonds are paper certificates held in physical form, you go to a bank or credit union instead. Either way, the process takes a few days to a few weeks, and you'll owe federal income tax on the interest you earned—though not state or local tax.

The fastest route is TreasuryDirect if your bonds are registered there. You log in, select the bonds you want to cash, and request the redemption. The Treasury deposits the money into your linked bank account within one to three business days. If you hold paper EE bonds, you walk into any bank or credit union that offers savings bonds services, bring your bonds and a photo ID, and they process the redemption on the spot or within a few days.

You cannot redeem an EE bond before it is one year old. If you redeem it before it reaches five years old, you lose the last three months of interest as a penalty. After five years, there is no penalty, and you can redeem at any time.

Key Takeaways

  • TreasuryDirect account holders redeem bonds online by logging in, selecting the bonds, and requesting a redemption that deposits to their bank account within one to three business days.
  • Paper EE bond holders take their certificates and a photo ID to any bank or credit union and request redemption in person.
  • You cannot redeem an EE bond until it is at least one year old, and redeeming before five years costs you the last three months of interest.
  • The redemption amount includes your original purchase price plus all interest earned, and you will owe federal income tax on the interest portion when you file your tax return.
  • If you inherited EE bonds or received them as a gift, the redemption process is the same, but the tax treatment may differ depending on when the original owner purchased them.

Redeeming through TreasuryDirect online

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section, which shows all bonds in your account with their current value. Select the specific EE bonds you want to redeem by clicking the checkbox next to each one, or select all of them at once if you are cashing everything out.

Click "Redeem" and confirm the action. The system will show you the redemption amount—your original purchase price plus accrued interest—and ask you to verify the bank account where you want the money sent. Make sure this account is linked to your TreasuryDirect profile; if it is not, you will need to add it first. Once you confirm, the redemption request is submitted immediately.

The Treasury processes the redemption and deposits the funds within one to three business days. You will receive an email confirmation of the transaction. The bonds disappear from your account once the redemption is complete. Keep the confirmation email for your records when you file taxes, since you will need to report the interest earned.

Redeeming paper EE bonds at a bank or credit union

Take your physical EE bond certificates and a government-issued photo ID (driver's license, passport, or state ID) to any bank or credit union. Not every branch offers savings bonds services, so call ahead to confirm the location handles redemptions. Ask to speak with someone in the customer service or operations department rather than a teller, since they handle bond transactions.

Hand over your bonds and ID. The bank will verify the bonds are genuine, check that they meet the redemption requirements (at least one year old), and calculate the current value including accrued interest. They will then either process the redemption on the spot and give you a check, or submit the request to the Federal Reserve and mail you a check within a few days. Some banks deposit directly to your account if you request it.

Ask the bank for a receipt showing the bonds you redeemed, the redemption date, and the amount paid. This receipt is important for your tax records. The bank does not withhold taxes on the redemption; you report the interest earned when you file your federal tax return.

What happens to the interest you earned

The redemption amount you receive includes both your original purchase price and all interest accrued since you bought the bond. For example, if you paid $50 for an EE bond and it is now worth $65, you receive $65 total, and $15 is taxable interest.

You owe federal income tax on the interest portion only, not on your original purchase price. You do not owe state or local income tax on EE bond interest, regardless of where you live. The tax is due in the year you redeem the bond, so you will report it on your federal tax return for that tax year.

You have two options for when to pay the tax: report it in the year you redeem the bond, or report it in the year the bond matures (which is 30 years after purchase for EE bonds). Most people report it when they cash the bond. If you have multiple bonds maturing in the same year, the interest adds up and may push you into a higher tax bracket, so some people space out redemptions across different years to manage their tax burden.

The one-year and five-year rules

You cannot redeem an EE bond during its first year of ownership. If you try to redeem before 12 months have passed, the bank or TreasuryDirect will reject the request. This rule applies to all EE bonds regardless of how they were purchased or who owns them.

If you redeem between one year and five years of ownership, you lose the last three months of interest as a penalty. For example, if a bond is worth $65 but you redeem it at 18 months old, you receive only $62.50 (the value three months earlier). After five years of ownership, there is no penalty, and you receive the full current value no matter when you redeem.

The five-year mark is calculated from the issue date printed on the bond, not from the date you purchased it. If you bought a bond on the secondary market or inherited one, the clock started when the original owner bought it, not when you received it.

Redeeming bonds you inherited or received as a gift

If you inherited EE bonds from someone's estate or received them as a gift, you can redeem them using the same process as any other bondholder. You will need to establish ownership first: for inherited bonds, this usually means providing a copy of the death certificate and proof that you are the named beneficiary or heir. For gifted bonds, you may need to provide documentation that the original owner transferred them to you, though this varies by bank.

Contact TreasuryDirect or your bank before attempting redemption to confirm what documents they need. Once ownership is transferred to your name, redemption works exactly like any other bond—you follow the TreasuryDirect or bank process described above.

The tax treatment of inherited bonds is different: if the original owner died before redeeming the bond, you do not owe federal income tax on the interest that accrued before their death. You only owe tax on interest that accrues after you inherit it. This is a significant advantage, so keep records of the bond's value on the date of death. Gifted bonds do not receive this tax break; you owe tax on all interest from the original purchase date forward.

What to do if you cannot find your bonds or lost the certificates

If you own bonds through TreasuryDirect, you do not have physical certificates, so there is nothing to lose. Log into your account and your bonds are listed there. If you forgot your TreasuryDirect password, use the "Forgot Password" link on the login page to reset it.

If you lost paper EE bond certificates, contact the Treasury's Bureau of the Fiscal Service at treasurydirect.gov or call 844-284-2676. Provide as much information as you can about the bonds: the approximate purchase date, the amount you paid, and the name on the certificate. The Treasury can search their records and issue replacement certificates or process a redemption if the bonds are found in their system.

If you inherited bonds and cannot locate the physical certificates, the deceased's bank or financial institution may have records. Ask the executor of the estate or check any safe deposit boxes. If the bonds were held in TreasuryDirect, the executor can contact the Treasury with the deceased's Social Security number to access the account.

Frequently Asked Questions

Can I redeem just part of an EE bond, or do I have to cash the whole thing?

You must redeem the entire bond; you cannot split it or redeem a portion. If you own multiple bonds, you can choose which ones to redeem and leave others untouched. If you need only part of the bond's value, you would have to redeem the whole bond and reinvest the extra money elsewhere.

How long does it take to get the money after I request a redemption?

TreasuryDirect deposits funds within one to three business days of your request. Banks may process paper bond redemptions on the spot and hand you a check, or they may submit it to the Federal Reserve and mail a check within a few days. Call your bank ahead of time to ask their typical timeline.

Do I have to report the redemption to the IRS, or just the interest?

You report only the interest earned, not the full redemption amount. Your original purchase price is not taxable because it was already paid with after-tax dollars. The bank or TreasuryDirect does not send a tax form to the IRS, so you are responsible for reporting the interest on your federal tax return.

What if I need the money before the bond is one year old?

You cannot redeem an EE bond before it reaches one year old, period. If you need emergency funds, you would have to borrow money or use a different savings source. Once the bond hits one year, you can redeem it, though you will lose three months of interest if you redeem before five years.

Can I redeem an EE bond at any bank, or only the bank where I opened the account?

You can redeem paper EE bonds at any bank or credit union that offers savings bonds services, not just the one where you originally purchased them. Call ahead to confirm the location handles redemptions. For TreasuryDirect bonds, you redeem online regardless of which bank you use for your linked account.