Cashing in a Series EE bond requires you to have the bond in hand, know where it was issued, and contact the right institution

Series EE bonds are issued by the U.S. Department of the Treasury, but you do not cash them through the Treasury directly. Instead, you cash them at a bank or credit union where you have an account, or through a brokerage firm if the bond is held electronically. The process takes a few minutes in person or a few days by mail, depending on how you submit the bond.

Before you cash the bond, check its issue date. Series EE bonds issued before May 2003 are paper bonds; those issued after May 2003 can be either paper or electronic. Paper bonds are physical certificates you hold. Electronic bonds exist only in the Treasury's system and are accessed through TreasuryDirect, the government's online platform. The method you use to cash the bond depends on which type you own.

Key Takeaways

  • Paper Series EE bonds are cashed at your bank or credit union by presenting the physical certificate and a form of identification.
  • Electronic Series EE bonds held in TreasuryDirect are cashed online through your account without visiting a bank.
  • You will receive the bond's current value, which includes the original purchase price plus all accrued interest up to the redemption date.
  • Cashing a Series EE bond before it reaches final maturity (30 years) may result in a penalty of the last three months of interest.
  • The bank or brokerage will report the interest earned to the IRS on Form 1099-INT, and you will owe federal income tax on that interest.

Cashing a paper Series EE bond at your bank

If you hold a physical paper bond, bring it to any bank or credit union where you have a deposit account. The institution does not have to be the bank where you originally purchased the bond. Bring your bond certificate and a government-issued photo ID, such as a driver's license or passport.

Tell the teller you want to redeem the bond. They will look up the bond's current value using its serial number and issue date. The value shown will be what you receive—your original purchase price plus all interest earned. If you are the sole owner listed on the bond, you will receive a check or a deposit to your account on the spot. If the bond is registered to two people and both names are required to cash it, both owners must be present with ID.

Some banks charge a small fee to redeem a bond, though many do not. Ask before you hand over the bond. If your bank declines to redeem it, try another bank in your area; most will do it for customers with accounts.

Cashing an electronic Series EE bond through TreasuryDirect

Electronic bonds are held in your TreasuryDirect account, which you access at treasurydirect.gov. Log in with your username and password. Navigate to the "Manage My Securities" section and find the bond you want to redeem.

Click on the bond and select the option to redeem it. You will be asked to confirm the redemption and choose where the money should go—either to a bank account linked to your TreasuryDirect account or to a new account you set up during the process. The Treasury will deposit the funds within one to three business days.

If you do not have a TreasuryDirect account or have forgotten your login, you can set one up or reset your password at treasurydirect.gov. The process takes about 15 minutes and requires a Social Security number and a valid email address.

Understanding the early redemption penalty

Series EE bonds reach their final maturity at 30 years. If you cash the bond before it matures, you will lose the last three months of interest. For example, if you cash a bond that is 5 years old, you will receive interest only through month 57 (5 years minus 3 months), not through the current date.

This penalty applies to all Series EE bonds, regardless of age. There is no exception for bonds that are decades old. However, if the bond has already reached its 30-year maturity date, there is no penalty—you receive the full value with all accrued interest.

Some people hold bonds past maturity specifically to avoid this penalty. If you are unsure whether your bond has reached maturity, check the issue date on the certificate or in your TreasuryDirect account. Add 30 years to the issue date. If today's date is after that, the bond has matured and you will not lose interest by cashing it.

What happens to the interest you earn

The interest on a Series EE bond is subject to federal income tax. You do not pay tax when you cash the bond; instead, the bank or Treasury reports the interest to the IRS on Form 1099-INT, and you report it on your tax return for the year you redeemed the bond.

Series EE bonds are exempt from state and local income tax, so you will not owe those taxes on the interest. However, you will owe federal tax on the full amount of interest earned, even if you held the bond for decades.

If you purchased the bond to fund education expenses, you may be able to exclude some or all of the interest from your taxable income under the Education Savings Bond Program. This requires that you meet specific income limits and use the money for may have access to education costs. You will need to report this on your tax return using Form 8815. Consult a tax professional to determine whether you may have access to.

Replacing a lost, stolen, or damaged paper bond

If your paper bond is lost, stolen, or damaged beyond use, you can request a replacement from the Treasury. Contact the Bureau of the Fiscal Service at 844-284-2676 or visit treasurydirect.gov and select "Report a Lost or Stolen Security."

You will need to provide the bond's serial number, issue date, and denomination. If you do not have this information, provide as much as you remember. The Treasury will investigate and, if the bond has not been cashed, issue a replacement certificate. This process can take several weeks.

If the bond has already been cashed by someone else, you will not receive a replacement. This is why it is important to store paper bonds in a safe place, such as a safe deposit box or home safe.

Cashing a bond held by a brokerage or financial advisor

If you purchased your Series EE bond through a brokerage firm or financial advisor, you will redeem it through that firm, not through a bank or TreasuryDirect. Contact your broker or advisor and ask them to redeem the bond. They will handle the transaction and deposit the proceeds into your account with them or transfer them to your bank account.

Brokerages typically charge a commission or fee to redeem a bond. Ask what the fee is before you authorize the redemption. Some brokerages may also require you to redeem bonds in minimum amounts or during certain time windows, so check your account agreement or call to confirm.

Frequently Asked Questions

Can I cash a Series EE bond before it reaches 30 years?

Yes, you can cash a Series EE bond at any time after you have owned it for one year. However, if you cash it before 30 years, you will forfeit the last three months of interest. Bonds can be held beyond 30 years, at which point the penalty no longer applies.

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

If you have the physical bond in hand, the serial number and issue date are printed on the certificate itself. If you have lost the bond, contact the Treasury at 844-284-2676 with as much information as you can provide. They can search their records using your name and Social Security number.

Do I have to cash the entire bond, or can I cash part of it?

Series EE bonds are redeemed as a whole. You cannot cash a portion of a bond and keep the rest earning interest. You must redeem the entire certificate at once.

How long does it take to receive the money after I redeem a bond?

If you redeem a paper bond in person at a bank, you typically receive the money the same day as a check or deposit. If you redeem an electronic bond through TreasuryDirect, the Treasury deposits the funds within one to three business days. If you redeem through a brokerage, the timeline depends on the firm's procedures.

Will I owe taxes on the interest from a bond I held for 20 years?

Yes. You owe federal income tax on all interest earned, regardless of how long you held the bond. The interest is reported to the IRS when you redeem the bond, and you report it on your tax return for that year. State and local taxes do not explore to Series EE bond interest.