Where and how to cash your EE bond

You can cash an EE savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route for most people is their own bank — walk in with the bond and a valid ID, and the teller can process it on the spot. Some banks charge a small fee (usually $5 to $10) to cash a bond that was not issued through them, so calling ahead saves a trip.

If you prefer to avoid the bank, you can redeem bonds directly through TreasuryDirect, the government's online platform. You will need to set up an account, transfer the physical bond into it (a process called "SmartExchange"), and then request the redemption. The money goes into your linked bank account within a few business days. This route takes longer than walking into a bank but costs nothing.

A third option is to mail the bond to the Federal Reserve Bank in your region with a redemption form. This is the slowest method — allow two to three weeks — but it works if you cannot reach a bank or prefer not to set up an online account.

Key Takeaways

  • Your own bank will cash an EE bond for free if you have an account there; other banks may charge $5 to $10.
  • TreasuryDirect lets you redeem bonds online for free, but you must first transfer the physical bond into a digital account.
  • You cannot cash an EE bond before it reaches final maturity (30 years from issue), though you can redeem it after five years without penalty.
  • The bond's current value is printed on the back or available through TreasuryDirect; the bank or Treasury pays that amount, not the original purchase price.
  • Cashing a bond triggers a 1099-INT form for tax purposes if the interest earned exceeds $10 in that year.

When you can redeem an EE bond

An EE bond can be cashed any time after you have held it for five years. If you redeem it before five years have passed, you lose the last three months of interest as a penalty. For example, if you bought a bond four years and eight months ago, cashing it now means you forfeit three months' worth of earnings.

The bond continues to earn interest until it reaches final maturity at 30 years from the issue date. After that, it stops earning and you should cash it. There is no benefit to holding it longer.

The current value of your bond — what you will actually receive — is not the price you paid. EE bonds are sold at half their face value (you pay $50 for a $100 bond), and the value grows over time. You can find the exact current value by entering the bond's serial number into the Savings Bond Calculator on the TreasuryDirect website, or the bank teller can look it up when you bring the bond in.

What to bring to the bank

Bring the physical bond itself and a valid government-issued ID — a driver's license, passport, or state ID card. The teller will verify that the ID matches the name on the bond. If the bond is registered to someone else and you are cashing it on their behalf, you will need their ID as well, or a signed power of attorney.

If the bond is lost or damaged, you cannot cash it at a bank. Instead, you must file a claim with the Treasury Department through TreasuryDirect or by mail. This process takes several weeks and requires proof of ownership (like a bank statement showing the purchase, or a copy of the original purchase receipt).

Tax reporting when you cash a bond

The interest you earned on the bond is taxable income in the year you cash it. If the interest is $10 or more, the bank or Treasury will send you a Form 1099-INT in January of the following year. You report this on your federal tax return.

You have a choice about when to pay tax on the interest. Most people pay it all in the year they cash the bond. But if you prefer, you can elect to report the interest each year as it accrues — meaning you would have been reporting it annually since you bought the bond. This election must be made on your first tax return after buying the bond, so it is rarely used. Stick with the standard approach: report all interest in the year you redeem.

State and local taxes on the interest vary by location. Some states do not tax savings bond interest at all; others tax it like regular income. Check your state's tax rules or ask a tax preparer.

Cashing a bond held in a minor's name

If the bond is registered to a child, the parent or legal guardian can cash it. Bring the child's birth certificate or Social Security card along with your ID. The interest is taxable to the child, not the parent, so it will be reported under the child's Social Security number on the 1099-INT.

Some parents use EE bonds as a tax-efficient way to save for a child's education because the interest can be excluded from federal tax under certain conditions (the Education Savings Bond Program). If you think this applies to your situation, consult a tax preparer before cashing the bond, because the tax treatment depends on how the bond was registered and when it was purchased.

What happens if the bond is lost or stolen

Report a lost or stolen bond to the Treasury Department as soon as you realize it is missing. You can file a claim through TreasuryDirect or by mailing Form PD F 1048 to the Bureau of the Fiscal Service. You will need to provide the bond's serial number, issue date, and denomination, plus proof that you owned it (a purchase receipt, bank statement, or insurance claim).

The Treasury will place a stop on the bond so it cannot be cashed by someone else. Processing a claim takes several weeks. Once approved, the Treasury will either reissue the bond to you or pay you its current value, depending on the circumstances.

Cashing bonds from an estate

If you are the executor or beneficiary of an estate and need to cash bonds that belonged to the deceased, the process depends on whether the bonds are registered in the deceased's name alone or as "payable on death" to a named person.

If payable on death to you, you can cash the bond by presenting your ID and a certified copy of the death certificate. If the bond is in the deceased's name only, you will need to provide a court document showing your authority to act on behalf of the estate — typically a letter testamentary or certificate of authority from the probate court. The bank or Treasury will tell you exactly what documents they need.

Frequently Asked Questions

Can I cash an EE bond at any bank?

Most banks and credit unions will cash an EE bond, but your own bank (where you have an account) will do it for free. Other banks may charge a fee of $5 to $10. Call ahead to confirm the fee and whether they cash savings bonds.

What if I need the money before five years have passed?

You can redeem the bond, but you will lose the last three months of interest as a penalty. If you need the money sooner, that is the cost. After five years, there is no penalty.

Do I have to report the interest on my taxes?

Yes. The interest is taxable income in the year you cash the bond. If the interest is $10 or more, you will receive a 1099-INT form. Report it on your federal tax return. State and local tax treatment varies by location.

What if the bond is in my spouse's name?

Your spouse must be present with a valid ID to cash it, or they can sign a power of attorney authorizing you to cash it on their behalf. The bank will require the original power of attorney document.

How do I know how much my bond is worth right now?

Use the Savings Bond Calculator on TreasuryDirect.gov — enter the bond's serial number and issue date, and it shows the current value. You can also call the bank and ask a teller to look it up, or the Treasury will tell you when you redeem it.