How to redeem EE savings bonds

You can redeem EE savings bonds at most banks and credit unions, or directly through the U.S. Department of the Treasury's online system called TreasuryDirect. The easiest route depends on whether you own the bonds in paper form or electronic form. Paper bonds go to a financial institution; electronic bonds are redeemed online. Either way, you need to wait until the bond has reached its final maturity date or you will receive less than its full value — though you can cash in a bond early if you are willing to accept a penalty.

The process itself is straightforward: you present the bond (or log into your account), confirm your identity, and receive payment. The money typically arrives within a few business days. Knowing which method works for your situation and what to expect from timing and taxes will help you plan when to redeem.

Key Takeaways

  • Paper EE bonds can be cashed at banks, credit unions, and some other financial institutions; electronic bonds are redeemed through TreasuryDirect online.
  • Bonds reach full value at their final maturity date (30 years from issue), but you can redeem early and receive less money if you need the cash sooner.
  • The IRS taxes the interest your bond earned, and you will receive a 1099-INT form reporting that income for the year you redeem.
  • Payment arrives within a few business days for most redemptions, though some institutions may take longer to process paper bonds.

Redeeming paper EE bonds at a bank or credit union

If you hold physical paper bonds, take them to any bank or credit union branch. Not every institution redeems bonds — call ahead to confirm they do before you make the trip. Bring the bonds themselves and a valid photo ID. The teller will verify the bonds are genuine, check that you are the registered owner or an authorized representative, and process the redemption.

Some banks charge a small fee to redeem bonds, though many do not. Ask about fees when you call. The institution will give you a receipt showing the redemption amount, and payment is usually deposited to your account or issued as a check within a few business days. If you own the bonds jointly with another person, both owners may need to be present or sign authorization forms.

Redeeming electronic EE bonds through TreasuryDirect

Electronic bonds live in your TreasuryDirect account online. Log in at treasurydirect.gov using your username and password. Navigate to "Manage My Securities" and select the bond you want to redeem. The system will show you the current value and ask you to confirm the redemption.

Once you confirm, the Treasury processes the redemption and deposits the money into the bank account you have on file with TreasuryDirect. This usually takes three to five business days. You will receive a confirmation number and a record of the transaction in your account. No fees are charged for redeeming through TreasuryDirect.

Understanding early redemption and penalties

EE bonds reach their full stated value at their final maturity date, which is 30 years after you purchase them. If you redeem before that date, you will receive less money — the bond's current redemption value, which grows over time but is lower than the final value.

Additionally, if you redeem a bond less than five years after you purchase it, the Treasury deducts three months of interest as a penalty. For example, if you bought a bond and redeemed it after two years, you would lose three months' worth of the interest you earned. After five years, you can redeem without this penalty, though you still receive less than the full 30-year value.

The redemption value is calculated by the Treasury and displayed in your TreasuryDirect account or provided by the bank when you redeem a paper bond. You can see what your bond is worth before you redeem it.

Tax reporting when you redeem

The interest your EE bond earned is subject to federal income tax. You report this income on your tax return for the year you redeem the bond. The Treasury will send you a Form 1099-INT in January of the following year showing the interest amount.

Some people choose to report the interest each year as the bond earns it, rather than waiting until redemption. This is allowed but requires you to file Form 8818 with your tax return. Most people find it simpler to report the interest only when they redeem. State and local taxes on the interest vary by location — check with your state's tax authority if you are unsure whether your state taxes savings bond interest.

What to do if you cannot find your paper bonds

If you own paper bonds but cannot locate them, you can search the Treasury's records to see if they are registered in your name. Visit treasurydirect.gov and use the "Savings Bond Calculator" or contact the Bureau of the Fiscal Service directly. They can confirm whether bonds exist in your name and, in some cases, help you recover them.

If a bond is lost or destroyed, you can file a claim with the Treasury to have it replaced or redeemed. You will need to provide proof of ownership — typically the original purchase receipt or documentation showing you bought the bond. The process takes several weeks, so this is not a fast option if you need the money urgently.

Redeeming bonds on behalf of someone else

If you are redeeming a bond registered to a minor or to someone who has passed away, the process is different. For a minor's bond, a parent or legal guardian can redeem it, but you will need to bring documentation proving guardianship along with the bond and ID. For a deceased person's bond, the executor of the estate or a legal representative can redeem it, though you will need to provide a death certificate and proof of your authority.

Contact the bank or TreasuryDirect before you attempt this redemption so you know exactly what documents to bring. Processing times are longer for these situations because the institution needs to verify your authority.

Frequently Asked Questions

Can I redeem my EE bond before it matures?

Yes. You can redeem an EE bond at any time after you own it for one year. If you redeem within five years of purchase, you lose three months of interest as a penalty. After five years, there is no penalty, but you still receive the current redemption value rather than the full 30-year value.

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

For electronic bonds redeemed through TreasuryDirect, the money usually arrives in three to five business days. For paper bonds redeemed at a bank, it typically takes a few business days, though some institutions may take longer. Ask your bank for their specific timeline when you redeem.

Do I have to pay taxes on my savings bond interest?

Yes, the interest is subject to federal income tax. You report it on your tax return for the year you redeem the bond. The Treasury sends you a 1099-INT form showing the amount. State and local taxes vary by location.

What if my bank says they do not redeem savings bonds?

Not all banks redeem bonds. If yours does not, try another bank or credit union in your area. You can also redeem paper bonds by mailing them to the Treasury, though this takes longer. The easiest option is usually to convert your paper bonds to electronic form in TreasuryDirect and redeem them online.

Can I redeem a bond if I lost the physical certificate?

You can file a claim with the Treasury's Bureau of the Fiscal Service to replace or redeem a lost bond. You will need proof of ownership, such as a purchase receipt. The process takes several weeks. Contact treasurydirect.gov or call the Bureau of the Fiscal Service for instructions on filing a claim.