Where and how to redeem EE bonds

You can redeem EE savings bonds at most banks and credit unions, or directly through the U.S. Treasury. The easiest route for most people is their own bank — walk in with the physical bonds, fill out a form, and the teller handles it. If you have paper bonds, bring them in their original condition. If your bonds are registered electronically through TreasuryDirect (the Treasury's online system), you redeem them through your TreasuryDirect account without visiting anywhere in person.

Banks and credit unions do not charge a fee to redeem savings bonds, though some may require you to have an account with them. Call ahead to confirm they redeem bonds and whether you need an appointment. The Treasury itself will redeem bonds by mail if you send them in, though this takes longer — typically two to three weeks for processing plus mail time.

If you have lost or damaged paper bonds, you cannot redeem them at a bank. Instead, you will need to file a claim with the Treasury's Bureau of the Fiscal Service. This process requires proof of ownership and takes several weeks. For this reason, keeping bonds in a safe place — a safe deposit box, home safe, or locked drawer — matters more than you might think.

Key Takeaways

  • Paper EE bonds can be redeemed at your bank or credit union without a fee, though some institutions may require you to be a customer.
  • Electronic bonds held in TreasuryDirect are redeemed through your online account and appear in your linked bank account within one to three business days.
  • You must wait at least one year after purchase before redeeming any EE bond, and redeeming before five years means losing the last three months of interest.
  • The Treasury will redeem bonds by mail if you cannot reach a bank, but the process takes several weeks and requires you to fill out specific forms.

The one-year and five-year rules

EE bonds have two important timing rules that affect when you can redeem them and how much you receive. First, you cannot redeem an EE bond until at least one year after you purchased it. If you try to redeem before that year is up, the bank will refuse. This is a hard rule with no exceptions.

Second, if you redeem an EE bond before it has been held for five years, you lose the last three months of interest. So if you bought a bond in January 2020 and redeem it in January 2023 (three years later), you get the interest through October 2022, not through January 2023. This penalty exists to discourage early redemption. After five years, you can redeem without this penalty.

The exception is if you are redeeming bonds to pay for may have access to education expenses — tuition, fees, books, and room and board at an accredited school. In that case, you may be able to avoid federal income tax on the interest, though you still cannot redeem before one year has passed. You will need to report this on your tax return using Form 8815.

What happens when you redeem at a bank

Bring your bonds and a form of identification to your bank or credit union. The teller will ask you to sign the back of each bond in their presence — this is required, and they will not accept a pre-signed bond. You will fill out a form (usually called a "Savings Bond Redemption Form" or similar) that asks for your name, address, and Social Security number. The bank keeps a copy for their records.

The bank then credits the money to your account, usually the same day or within one business day. If you do not have an account at that bank, some will issue a check instead, though this is less common. Ask when you call to confirm their process. The amount you receive is the bond's current value — the original purchase price plus all accrued interest, minus the three-month interest penalty if you are redeeming before five years.

The bank does not withhold taxes from the redemption. You will receive a Form 1099-INT from the bank or the Treasury at the end of the year showing the interest you earned, and you report that interest as income on your tax return. This is true whether you redeemed the bonds or still hold them.

Redeeming bonds through TreasuryDirect

If your EE bonds are held electronically in a TreasuryDirect account, you log in to your account at treasurydirect.gov and select the bonds you want to redeem. You choose a linked bank account where the money should go, and the Treasury processes the redemption. The funds appear in your bank account within one to three business days.

You do not need to fill out any paper forms or visit a bank. The one-year and five-year rules still apply — the system will not let you redeem a bond that is less than one year old, and if you redeem before five years, the interest penalty is automatic. You can redeem part of your holdings and leave the rest in your account, or redeem everything at once.

If you have both paper bonds and electronic bonds, you handle them separately. Paper bonds go to a bank, and electronic bonds go through TreasuryDirect. You cannot convert paper bonds to electronic ones, so if you want the convenience of online redemption, you would need to redeem the paper bonds first.

Redeeming bonds by mail

If you cannot reach a bank or prefer not to visit in person, you can mail your bonds to the Treasury's Bureau of the Fiscal Service. You will need to fill out Form PD F 1522 (Paying Agent's Stock Transfer Request) or Form PD F 1522-1 (for bonds held in a trust or estate). These forms are available on the Treasury website.

Mail the completed form and your bonds together to the address listed on the form. Include a copy of your identification and proof of your address. The Treasury will process the redemption and mail you a check, which typically takes two to three weeks from the time they receive your package, plus mail time in both directions. This method is slower than using a bank or TreasuryDirect, so use it only if the other options are not available to you.

If you are concerned about mailing original bonds, you can ask your bank whether they will redeem them on your behalf and mail them to the Treasury themselves. Some banks offer this service, though it is not standard. Always call ahead to ask.

What to do if your bonds are lost or damaged

If your paper EE bonds are lost, stolen, or damaged beyond use, you cannot redeem them at a bank. Instead, you must file a claim with the Treasury's Bureau of the Fiscal Service using Form PD F 1048 (Claim for Lost, Stolen, or Destroyed Savings Bonds). This form requires you to provide proof of ownership — usually the original purchase receipt, a bank statement showing the purchase, or a copy of your tax return from the year you bought the bonds.

The Treasury will investigate your claim, which can take several weeks or longer. If they approve it, they will issue you a replacement bond or redeem it and send you a check. If you cannot find proof of ownership, the claim becomes much harder to process. This is why keeping bonds in a safe place and maintaining records of your purchases matters.

If a bond is physically damaged but still readable and intact enough to handle, some banks will still redeem it. Bring it in and ask — the worst they can say is no. Do not try to repair a damaged bond yourself, as this can make it impossible to redeem.

Understanding the value you receive

The amount you get when you redeem an EE bond is not the face value printed on the bond. EE bonds are sold at half their face value — you pay $50 for a $100 bond, for example. The bond earns interest over time, and when you redeem it, you receive the current value, which is the original purchase price plus all accrued interest (minus the three-month penalty if applicable).

The Treasury publishes the current redemption value of every EE bond issued. You can look up your bond's value on the Treasury website using their Savings Bond Calculator, or your bank can tell you the value when you bring the bond in. The value changes every month on the first of the month, so if you are close to a redemption date, waiting a few days might give you slightly more interest.

EE bonds issued before May 2003 earn interest for 30 years from the issue date. Bonds issued after May 2003 earn interest for 20 years. After that period ends, the bond stops earning interest, and you should redeem it. Holding a bond past its final maturity date does not earn you anything.

Frequently Asked Questions

Can I redeem someone else's EE bond?

No. Only the person whose name is on the bond can redeem it. If the bond owner has died, the person handling their estate can redeem it, but they will need to provide a death certificate and proof that they have authority over the estate. If the bond is registered to a minor, a parent or guardian can redeem it on their behalf.

What if I redeem a bond and then change my mind?

Once a bond is redeemed, it is gone. You cannot undo the redemption or get the bond back. If you want to save the money, you would need to purchase new bonds. Think carefully before redeeming, especially if you are close to the five-year mark.

Do I have to pay taxes on the interest when I redeem?

You owe federal income tax on the interest, but you do not pay it when you redeem. Instead, you report the interest on your tax return for the year you redeem the bond. State and local taxes vary — some states do not tax savings bond interest at all. The bank or Treasury will send you a Form 1099-INT showing the interest amount.

How long does it take to get my money after I redeem?

At a bank, usually the same day or within one business day. Through TreasuryDirect, one to three business days. By mail to the Treasury, two to three weeks for processing plus mail time. If you need the money quickly, redeeming at your bank in person is the fastest option.

Can I redeem just part of a bond?

No. EE bonds are redeemed as whole units — you cannot split one bond and redeem half of it. If you own multiple bonds, you can choose which ones to redeem and leave the others in place.