You can redeem Series EE bonds at your bank, through the Treasury Department, or by mail — but the method depends on whether you own paper bonds or electronic ones

Series EE bonds can be cashed in at any point after you own them, though the Treasury penalizes you with a three-month interest penalty if you redeem them before five years have passed. The actual redemption process is straightforward: you either walk into a bank with the bond in hand, log into your Treasury Direct account online, or mail the bond to the Treasury. Which route you take depends entirely on what form your bond is in.

Paper bonds issued before 2012 and electronic bonds purchased through Treasury Direct are redeemed differently. Paper bonds require a financial institution or the Treasury to verify your identity and the bond's authenticity. Electronic bonds live in your Treasury Direct account and can be redeemed with a few clicks. Both methods take time — expect one to three weeks for paper bonds processed by mail, and one to two business days for electronic redemptions.

Key Takeaways

  • Paper Series EE bonds can be cashed at most banks and credit unions, or mailed directly to the Treasury Department's Bureau of the Fiscal Service.
  • Electronic Series EE bonds purchased through Treasury Direct are redeemed by logging into your account and requesting the redemption online.
  • Redeeming a Series EE bond before five years have passed costs you three months of interest as a penalty.
  • The Treasury will not redeem a Series EE bond until it has been owned for at least one year, regardless of the redemption method.
  • You will receive a 1099-INT form in January for the interest earned on any bonds redeemed in the previous calendar year.

Redeeming paper Series EE bonds at a bank or credit union

If you own a physical paper bond, the easiest redemption route is usually your own bank or credit union. Walk in with the bond, your government-issued ID, and a signature card or account information. The teller will verify that the bond is genuine, check that you meet the ownership and holding-period requirements, and process the redemption on the spot. You will receive a check or a deposit to your account within a few business days.

Not every bank redeems savings bonds — call ahead before you go. Large national banks almost always do. Smaller regional banks and credit unions sometimes refuse because the verification process takes time and they do not earn a fee. If your bank will not redeem the bond, you have two other options: mail it to the Treasury or use Treasury Direct if the bond is registered to you electronically.

Bring the original bond certificate, not a photocopy. The bank needs to see the physical document and will usually keep it as part of the redemption record. If you have lost the bond, you will need to file a claim with the Treasury Department — a separate process that takes longer and requires proof of ownership.

Redeeming electronic Series EE bonds through Treasury Direct

If you purchased your Series EE bond through Treasury Direct (the Treasury's online platform), you own it electronically and never received a paper certificate. Redeeming it is the fastest method: log into your Treasury Direct account at treasurydirect.gov, navigate to "Manage My Securities," select the bond you want to redeem, and request the redemption. The Treasury will deposit the money into the bank account linked to your Treasury Direct account within one to two business days.

You do not need to provide any documents or verify your identity again — the Treasury already has that information from when you opened the account. The entire process takes minutes. The only delay is the Treasury's processing time, which is usually overnight but can stretch to two business days during high-volume periods.

If you have forgotten your Treasury Direct login, you can reset your password through the website. If you cannot access your account for any reason, you can call the Treasury Direct customer service line at 844-284-2676 to request a redemption by phone, though this takes longer than the online method.

Mailing a paper Series EE bond to the Treasury

If your bank will not redeem the bond and you do not own it through Treasury Direct, you can mail the bond directly to the Bureau of the Fiscal Service. Send the original bond certificate, a signed letter requesting redemption, a copy of your government-issued ID, and a completed FS Form 1522 (the redemption form) to the address listed on the Treasury Department website. Include a return address and consider using certified mail so you have proof of delivery.

Processing takes one to three weeks from the date the Treasury receives your package. The Treasury will mail you a check to the address you provided. This method is slower than bank redemption or Treasury Direct, and there is a small risk of the bond being lost in the mail, so certified mail is worth the extra cost.

You can read FS Form 1522 from the Treasury Department website or request it by calling 844-284-2676. The form is straightforward — it asks for your name, address, the bond's serial number, and the date you want the redemption processed. Fill it out completely and sign it in front of a notary public or a bank officer, or the Treasury may reject it.

The five-year holding period and interest penalty

The Treasury will not redeem any Series EE bond until you have owned it for at least one year. If you redeem it before five years have passed, you lose the last three months of interest you earned. This is a flat penalty — it applies whether you redeem after one year or after four years and eleven months.

For example, if you own a Series EE bond that has earned $100 in interest and you redeem it after three years, you will receive the principal plus $75 in interest (the $100 minus three months' worth). The three-month penalty does not change based on how long you actually held the bond. After five years, there is no penalty — you receive all the interest earned, regardless of when you redeem.

The interest penalty applies to all redemption methods: bank, Treasury Direct, and mail. There is no way to avoid it if you redeem before the five-year mark. The Treasury calculates the penalty automatically and deducts it from your redemption check or deposit.

What happens after you redeem: taxes and documentation

The interest you earn on a Series EE bond is subject to federal income tax. You do not pay tax when you redeem the bond — instead, you report the interest on your tax return for the year in which you redeem it. The Treasury will send you a 1099-INT form in January showing the interest earned on any bonds you redeemed in the previous calendar year. Use this form to report the income to the IRS.

Some people choose to report the interest each year as the bond earns it, rather than waiting until redemption. This is called the "accrual method" and requires you to file Form 8818 with your tax return. Most people do not do this — they wait until redemption and report all the interest at once. Talk to a tax professional if you are unsure which method makes sense for your situation.

Series EE bonds are exempt from state and local income tax. You only owe federal tax on the interest. If you used the bond to pay for may have access to education expenses, you may be able to exclude some or all of the interest from your taxable income under the Education Savings Bond Program, though this has income limits and other restrictions.

Common mistakes to avoid when redeeming

The most common mistake is trying to redeem a bond before one year has passed. The Treasury will reject the redemption request, and you will have to wait and resubmit. Check the issue date on your bond before you start the process.

If you are redeeming a paper bond by mail, the second most common mistake is failing to sign the redemption form in front of a notary or bank officer. The Treasury requires a witnessed signature and will return the form unsigned. This adds weeks to the process. Do this step before you mail anything.

Do not send the original bond through regular mail without tracking. Use certified mail with return receipt so you have proof the Treasury received it. If the bond is lost, you will have to file a claim and wait for the Treasury to investigate.

If you own the bond jointly with another person, both owners must sign the redemption request and provide ID. If only one owner redeems it, the Treasury will reject the request. Check the bond certificate to see whose names appear on it.

Frequently Asked Questions

What if I lost my paper Series EE bond?

Contact the Treasury Department's Bureau of the Fiscal Service and file a claim for a lost or stolen bond. You will need to provide the bond's serial number, issue date, and denomination, plus proof that you owned it (such as a purchase receipt or bank statement). The Treasury will investigate and issue a replacement or redemption check if your claim is approved. This process takes several weeks.

Can I redeem only part of a Series EE bond?

No. Series EE bonds are issued in fixed denominations and cannot be split. You must redeem the entire bond at once. If you need only part of the money, you will have to redeem the whole bond and keep the rest of the proceeds in a savings account or reinvest them elsewhere.

Do I have to redeem all my bonds at the same time?

No. You can redeem bonds one at a time, in any order, and on any schedule that works for you. If you own multiple bonds through Treasury Direct, you can select which ones to redeem each time you log in. If you own paper bonds, you can bring one to the bank while leaving the others in a safe deposit box.

What if the bank says it cannot verify my bond?

Ask the bank manager or call the bank's main office. Some tellers are unfamiliar with savings bonds and may incorrectly say they cannot process the redemption. If the bank genuinely cannot verify the bond, take it to a different bank or mail it to the Treasury. Do not leave the bond with the bank — take it with you and try elsewhere.

Can I redeem a Series EE bond that belongs to someone else?

Only if you are listed as a co-owner on the bond certificate. If the bond belongs to another person and you are not listed on it, you cannot redeem it. If the owner has died, the bond becomes part of their estate and must be handled through probate or the estate settlement process.