Where to cash your EE bond

You can cash an EE savings bond at most banks and credit unions, even if you didn't buy it there. Call ahead to confirm they handle savings bonds — not every branch does, though most larger ones will. Bring the physical bond certificate itself; you'll need the original paper document, not a copy.

If you don't have a local bank or prefer not to visit in person, you can mail your bond to the Treasury Department's Bureau of the Fiscal Service. Send it to the address listed on the Treasury Direct website under "Redeem a Savings Bond by Mail." Include a signed letter requesting redemption and your Social Security number. Processing takes about four weeks by mail.

You can also redeem bonds through a brokerage firm if you have an account there, though this is less common. Call your brokerage first to ask whether they handle savings bond redemptions.

Key Takeaways

  • Most banks and credit unions will cash your EE bond for you without charge, but call first to confirm they offer this service.
  • You must bring the original paper bond certificate — a photocopy will not be accepted.
  • If you own the bond jointly or it's registered to a minor, both owners or a parent must be present to cash it.
  • The bank will report the redemption to the IRS, and you'll owe federal income tax on the interest earned, though not state income tax in most cases.
  • You can mail your bond to the Treasury Department if you prefer not to visit a bank, though the process takes about four weeks.

What happens when you cash the bond

When you hand your bond to the teller, they will verify the bond's serial number and current value using the Treasury Department's redemption tables. The bank will then issue you a check or deposit the funds directly into your account if you have one there. You'll receive the full face value of the bond plus all the interest it has earned since you bought it.

The bank will give you a receipt showing the redemption amount. Keep this receipt for your records, because you'll need it when you file your taxes. The bank reports the redemption to the IRS, so the interest income will show up on your tax return whether you report it or not.

Tax consequences of cashing your bond

You owe federal income tax on the interest your EE bond earned, but only in the year you cash it. If your bond earned $500 in interest, that $500 counts as taxable income on your federal return. The bank does not withhold taxes automatically — you pay when you file.

Most states do not tax the interest from EE bonds, so you typically won't owe state income tax. A few states do tax savings bond interest, so check your state's tax rules if you live in one of the less common cases.

If you bought the bond in a Series EE Education Savings Bond program and used the money for may have access to education expenses, you may be able to exclude some or all of the interest from your taxable income. This requires meeting specific conditions set by the IRS, so speak with a tax professional if this applies to you.

Ownership and who can cash the bond

If the bond is registered in your name alone, you can cash it by yourself. If it's registered to two owners jointly, both owners must be present at the bank to cash it. If one owner has died, the surviving owner can cash it, but you'll need to bring a death certificate.

If the bond is registered to a minor, a parent or legal guardian must be present to cash it. The bank will ask for proof of guardianship, usually a birth certificate showing the parent's name or a court order if guardianship was established legally.

Timing: when you can cash your bond

You can cash an EE bond any time after you've owned it for one year. If you cash it before five years have passed, you'll lose the last three months of interest as a penalty. For example, if you cash a bond after three years, you receive interest for only two years and nine months.

After the bond has been held for five years, you can cash it without losing any interest. EE bonds stop earning interest after 30 years, so there's no benefit to holding one longer than that.

What to bring to the bank

Bring the original bond certificate and a government-issued photo ID, such as a driver's license or passport. If you're cashing a bond registered to someone else or jointly, bring that person's ID as well. If the bond is registered to a minor, bring the child's birth certificate or the parent's ID showing the child's name.

If the bond was lost or damaged, you cannot cash it at a bank. Instead, you'll need to file a claim with the Treasury Department and request a replacement before you can redeem it.

Bonds held in a Treasury Direct account

If you bought your EE bond through Treasury Direct (the government's online savings bond platform), you don't have a paper certificate. Instead, you redeem it directly through your Treasury Direct account online. Log in, select the bond you want to redeem, and request the redemption. The funds will be deposited into your linked bank account within a few business days.

Treasury Direct bonds follow the same rules as paper bonds: you must hold them for at least one year, and you lose three months of interest if you redeem before five years. The process is faster online than by mail or in person.

Frequently Asked Questions

What if I lost my bond certificate?

You cannot cash a lost bond at a bank. Contact the Treasury Department's Bureau of the Fiscal Service to file a claim and request a replacement certificate. This process takes several weeks. Once you receive the replacement, you can cash it at a bank or through the mail.

Can I cash part of a bond and keep the rest?

No. EE bonds are issued in fixed denominations, and you must redeem the entire bond. You cannot split it or cash only a portion of it.

Do I have to report the interest to the IRS?

Yes. The bank reports the redemption to the IRS, and you must report the interest income on your federal tax return. You can report it in the year you cash the bond, or you can report it annually if you've been reporting interest each year since you bought it — ask a tax professional which method applies to your situation.

What if the bond is worth less than I paid for it?

EE bonds cannot be worth less than you paid for them. They are may provide to reach face value within 20 years. If you cash it before it reaches face value, the Treasury Department will pay you the higher of the current redemption value or the amount you paid.

Can I cash a bond at any bank, or only the one where I bought it?

You can cash it at almost any bank or credit union, not just the one where you bought it. Call ahead to confirm they handle savings bond redemptions, since some smaller branches may not offer this service.