You can cash Series EE bonds at your bank, through the Treasury Department, or by mail — but the process and timing depend on the bond's age and where you hold it

Series EE bonds become redeemable (cashable) 12 months after you buy them. If you cash one before five years have passed, you lose the last three months of interest as a penalty. After five years, you can cash them with no penalty. The actual mechanics of cashing them vary depending on whether your bank holds the bonds, you own them in paper form, or they are registered in the Treasury's electronic system.

The most common route is through your bank if you bought the bonds there or if they are held in a brokerage account. For bonds you own in paper form or registered electronically with the Treasury, you will work directly with the Treasury Department or a financial institution that processes Treasury securities.

Key Takeaways

  • Series EE bonds can be cashed after 12 months, but cashing before five years costs you the last three months of accrued interest.
  • Banks and brokerages can redeem bonds they hold for you, usually within one to three business days.
  • Paper bonds must be taken to a bank or submitted to the Treasury Department with a signed form and proof of identity.
  • Electronic bonds registered with TreasuryDirect can be cashed through your TreasuryDirect account without visiting a bank.
  • You will receive a 1099-INT form the year you cash the bonds, reporting the interest earned for tax purposes.

Cashing bonds held at your bank or brokerage

If you bought your Series EE bonds through a bank, credit union, or brokerage firm, that institution holds them in its system. To cash them, contact the branch or account manager where you hold the bonds and request redemption. You will need to provide the bond's serial number or let them look it up in your account.

Processing time is usually one to three business days. The bank will deposit the cash into your account or issue a check. Some banks may charge a small fee for this service, though many do not — ask before you request the redemption.

This is the simplest route if your bonds are already there, because the bank has all the information it needs and handles the paperwork with the Treasury Department on your behalf.

Redeeming paper Series EE bonds

If you own physical paper bonds, you have two options: take them to a bank or mail them to the Treasury Department.

At a bank: Walk into any bank branch with your bonds and a valid photo ID. Ask to redeem your Series EE bonds. The bank will verify the bonds, sign them as the paying agent, and send them to the Federal Reserve for payment. You will receive a check or deposit within one to two weeks. Not all banks do this — call ahead to confirm the branch handles bond redemptions.

By mail to the Treasury: If no local bank will redeem them, you can mail the bonds directly to the Treasury Department. You will need to complete Form PD 1522 (Statement of Ownership for Series EE Bonds), sign it in front of a notary public, and include a copy of your ID. Mail the bonds, the signed form, and your ID copy to the address listed on the Treasury's website. Processing takes four to six weeks, and the Treasury will mail you a check.

Cashing bonds through TreasuryDirect

If your Series EE bonds are registered in your TreasuryDirect account (the Treasury Department's online system), you can redeem them without leaving home. Log into your TreasuryDirect account, navigate to the "Manage Securities" section, and select the bonds you want to cash. Request redemption, and the Treasury will deposit the money into the bank account linked to your TreasuryDirect account within one to two business days.

This is the fastest method if your bonds are already in TreasuryDirect. You do not need to visit a bank, mail anything, or deal with paper forms.

The early redemption penalty and when it applies

If you cash a Series EE bond before it has been held for five years, the Treasury withholds the last three months of interest you earned. For example, if a bond has earned $100 in interest but you cash it after three years, you receive $97 instead.

This penalty applies only if you redeem before the five-year mark. After five years, you can cash the bond anytime with no penalty and receive all accrued interest. Many people hold Series EE bonds specifically because they plan to keep them for at least five years and avoid this cost.

The one exception is if you use the bond's interest to pay for may have access to education expenses in the same year you redeem it. In that case, you may be able to exclude the interest from your taxable income under the Education Savings Bond Program, though you still cannot avoid the three-month penalty if you redeem before five years.

What happens to your taxes when you cash the bonds

The interest you earn on Series EE bonds is subject to federal income tax. You do not pay tax when the bond matures or when you cash it — instead, you report the interest on your tax return for the year you redeem the bond.

The financial institution that cashes the bond (your bank, the Treasury, or whoever processes it) will send you a Form 1099-INT by January 31 of the following year. This form reports the interest amount. You include this on your federal tax return. State and local taxes on the interest vary by location — some states do not tax bond interest, while others do.

If you have held the bond for many years, the interest can be substantial. For example, a $50 Series EE bond purchased 20 years ago might have grown to $100 or more, meaning $50 in taxable interest. Plan for this when you redeem bonds, especially if you are cashing several at once.

Replacing lost or damaged paper bonds

If you own paper bonds and they are lost, stolen, or damaged, you can request a replacement from the Treasury Department. You will need to file a claim with the Treasury and provide proof of purchase or ownership — bank statements, old tax returns, or documentation from the original purchase are helpful.

The process takes several months, and the Treasury will issue a replacement bond with the same issue date and value as the original. Until the replacement arrives, you cannot redeem the bond. If the original bond is found after the replacement is issued, the Treasury will deactivate it so only one can be cashed.

Frequently Asked Questions

Can I cash a Series EE bond before 12 months?

No. Series EE bonds cannot be redeemed until at least 12 months after purchase. If you need the money sooner, you will have to wait or explore other options. After 12 months, you can redeem them anytime, but you will lose three months of interest if you cash before five years.

What if I lost the serial number of my paper bond?

You can still redeem it. Bring the physical bond itself to a bank or the Treasury — the serial number is printed on the bond. If the bond is damaged or the number is illegible, contact the Treasury Department with proof of ownership, and they can help you locate and redeem it.

Do I have to cash all my bonds at once?

No. You can redeem individual bonds or groups of bonds whenever you want, as long as each bond has been held for at least 12 months. This lets you spread out the tax impact across multiple years if you have many bonds to cash.

What if my bank says it does not redeem savings bonds?

Not all banks offer this service. Try another bank in your area, or take the bonds directly to the Federal Reserve branch in your region — they always redeem them. You can also mail them to the Treasury Department with Form PD 1522, though this takes longer.

Can I cash someone else's Series EE bond?

Only if you are listed as the owner or co-owner on the bond. If the bond is in someone else's name only, that person must redeem it or authorize you in writing. If the owner has died, the bond becomes part of their estate and must be handled through probate or according to the will.