Where and how to cash EE savings bonds

You can cash EE savings bonds 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 your ID, and the teller will process it on the spot. If your bank does not handle savings bonds, they can direct you to one that does, or you can mail the bond to the Treasury's Bureau of the Fiscal Service.

The Treasury also runs a digital system called TreasuryDirect where you can hold and redeem bonds electronically. If your EE bonds are already registered there, you can cash them online without leaving home. If you have paper bonds, you will need to convert them to electronic form first, which takes a few weeks.

No matter which method you choose, you will need the bond itself (or proof of ownership if it is electronic), a valid photo ID, and the Social Security number of the bond owner. If someone else owns the bond, you will need a power of attorney or proof that you are the legal representative of the owner's estate.

Key Takeaways

  • Your own bank or credit union is usually the fastest way to cash a paper EE bond — bring the bond and your ID and the teller will process it when ready.
  • EE bonds must reach their issue date before you can cash them; cashing before five years have passed costs you the last three months of interest.
  • The Treasury will mail you a check within 15 business days if you send your bond by mail, or you can redeem electronic bonds through TreasuryDirect when ready.
  • Cashing a bond triggers federal income tax on the interest earned, though you may be able to defer that tax if you roll the money into an education savings account.

When you can cash an EE bond

You can cash an EE bond once it reaches its issue date — the date printed on the bond itself. You cannot cash it before that date, even if you own it. Most EE bonds reach their issue date within a few months of purchase, but some older bonds may take longer depending on when they were issued.

If you cash the bond before five years have passed since the issue date, you will lose the last three months of interest. For example, if you bought a bond on January 1 and cash it on August 1 of the same year, the Treasury will deduct three months of interest from what you receive. After five years, you can cash without this penalty.

EE bonds stop earning interest after 30 years. If you own a bond that is older than 30 years, you should cash it soon, because it will not grow any further.

Cashing bonds at a bank or credit union

Bring your paper bond and a government-issued photo ID to any bank or credit union. The teller will verify that the bond is genuine, check that it has reached its issue date, and calculate what you are owed. They will then give you the cash or deposit it into your account on the same day.

If the bond is registered to someone else, you will need to bring a power of attorney document or proof that you are authorized to cash it on their behalf. If the bond owner has died, bring a copy of the death certificate and documentation showing you are the executor or beneficiary of the estate.

Some smaller banks or credit unions do not handle savings bonds. If yours does not, ask them which bank in your area does, or use the Treasury's bank locator tool on the TreasuryDirect website.

Cashing bonds through TreasuryDirect online

If your EE bonds are registered in a TreasuryDirect account, you can redeem them without going anywhere. Log into your account, select the bond you want to cash, and request the redemption. The money will be deposited into the bank account you have on file, usually within one to two business days.

If you own paper bonds and want to use TreasuryDirect, you will need to convert them to electronic form first. This process is called "SmartExchange." You submit the paper bonds to the Treasury, they verify and scan them, and then they appear in your TreasuryDirect account as electronic bonds. This takes about four weeks. Once they are electronic, you can redeem them online anytime.

To start a SmartExchange, go to the TreasuryDirect website, log in, and follow the instructions for converting paper bonds. You will print a form, mail it with your bonds, and receive confirmation when the conversion is complete.

Mailing bonds to the Treasury

If you do not have a bank account or prefer not to visit a bank, you can mail your bonds directly to the Bureau of the Fiscal Service. Include a letter stating that you want to redeem the bonds, your name, address, and Social Security number, and the serial numbers of the bonds you are cashing.

Mail the package to the address listed on the Treasury's website for bond redemptions. Do not send bonds by regular mail — use certified mail with return receipt so you have proof of delivery. The Treasury will verify the bonds, calculate the redemption value, and mail you a check within 15 business days.

This method is slower than using a bank or TreasuryDirect, but it works if you cannot access either of those options. Keep a copy of your letter and the certified mail receipt until you receive the check.

Tax consequences of cashing EE bonds

When you cash an EE bond, you owe federal income tax on all the interest the bond earned. The Treasury does not withhold this tax automatically — you will owe it when you file your tax return for the year you cashed the bond. Your bank or the Treasury will send you a Form 1099-INT showing how much interest you earned.

You do not owe state or local income tax on EE bond interest, only federal tax. The amount of tax you owe depends on your total income for the year and your tax bracket.

If you use the bond proceeds to pay for may have access to education expenses — tuition, fees, books, or room and board at an accredited school — you may be able to exclude some or all of the interest from your taxable income. This is called the Education Savings Bond Program. You will need to meet income limits and other requirements, and you must report this on your tax return. Talk to a tax professional or review IRS Publication 970 to see if you may have access to.

What happens if a bond is lost or stolen

If you lose a paper EE bond or it is stolen, contact the Treasury when ready. You will need the bond's serial number, issue date, and denomination. The Treasury can issue a replacement bond, but the process takes time and requires documentation.

If the bond is in a TreasuryDirect account, your bonds are protected by the account security system. If someone gains unauthorized access to your account, contact the Treasury right away and they can freeze the account while they investigate.

Frequently Asked Questions

Can I cash an EE bond before it reaches its issue date?

No. The bond must reach the date printed on it before you can redeem it. You cannot cash it early under any circumstances, even in an emergency.

What if I cash my bond before five years have passed?

You will lose the last three months of interest. For example, if a bond earned $100 in interest but you cash it at four years and nine months, you will receive only $75 in interest. After five years, this penalty no longer applies.

Do I have to pay taxes on the interest right away?

No. You pay the tax when you file your federal income tax return for the year you cashed the bond. The Treasury sends you a Form 1099-INT showing the interest amount. You report this on your return and pay any tax owed at that time.

Can I cash someone else's EE bond?

Only if you have legal authority — a power of attorney, or proof you are the executor or beneficiary of their estate. You will need to bring documentation along with your ID and the bond.

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

At a bank, you get cash or a deposit the same day. Through TreasuryDirect, the deposit takes one to two business days. If you mail the bond to the Treasury, expect a check within 15 business days of arrival.