You can redeem Series EE bonds at a bank, through the Treasury Department, or by mail — the method depends on whether you own the physical bond or hold it electronically

Series EE bonds can be cashed in at any point after you own them, though the Treasury Department charges a penalty if you redeem them before five years have passed. The penalty is the loss of the last three months of interest. After five years, you can redeem without penalty. The actual process is straightforward and takes a few days to a few weeks depending on how you submit the request.

Where you redeem depends on the form your bond takes. If you hold a physical paper bond, you go to a bank or credit union. If you own an electronic bond through TreasuryDirect (the Treasury's online system), you redeem it directly through your account. You cannot redeem a paper bond through TreasuryDirect, and you cannot redeem an electronic bond at a bank.

Key Takeaways

  • Paper Series EE bonds are redeemed at a bank or credit union by presenting the bond and a form of identification; the institution sends it to the Federal Reserve for processing.
  • Electronic Series EE bonds held in TreasuryDirect are redeemed by logging into your account, selecting the bond, and requesting redemption; the money arrives in your linked bank account within one to three business days.
  • Redeeming before five years triggers a penalty equal to three months of interest, but after five years you can cash in without penalty.
  • If you have lost a paper bond, you can file a claim with the Treasury Department using Form 8888, though the process takes several months.

Redeeming a paper Series EE bond at a bank

Walk into any bank or credit union that offers savings bond services — most do, but call ahead to confirm. Bring the physical bond and a government-issued photo ID. The teller will ask you to sign the back of the bond in their presence. They will then send the bond to the Federal Reserve for verification and processing.

The Federal Reserve checks that the bond is genuine and that the person redeeming it is the registered owner or an authorized representative. This verification takes five to seven business days. Once cleared, the Federal Reserve sends the redemption amount to the bank, which deposits it into your account or gives you a check. You do not receive the money when ready — plan for one to two weeks from the day you present the bond.

If you are redeeming a bond registered to someone else (such as a deceased parent's bond), bring documentation showing you have the right to redeem it. This might be a will, a power of attorney, or a court order. The bank will tell you what documents they need before they process the bond.

Redeeming an electronic Series EE bond through TreasuryDirect

Log into your TreasuryDirect account at treasurydirect.gov using your username and password. Navigate to the "Manage My Securities" section and find the Series EE bond you want to redeem. Click on the bond and select "Redeem." You will be asked to confirm the redemption amount and the bank account where you want the money sent.

The money is transferred to your linked bank account within one to three business days. TreasuryDirect does not mail checks — the redemption must go to a U.S. bank account in your name. If you need to change the linked account, you can do that in your TreasuryDirect profile before you request the redemption.

You can redeem part of a bond's value if you own multiple bonds or if you want to keep some of the money invested. Select only the bonds you want to cash in, and leave the others in your account.

The five-year penalty and when it applies

If you redeem a Series EE bond before you have owned it for five years, the Treasury Department withholds three months of interest as a penalty. This means you receive the principal (the amount you paid for the bond) plus any interest earned, minus three months' worth of that interest.

The five-year clock starts on the issue date printed on the bond, not the date you purchased it. If you bought a bond on June 15 but it was issued on June 1, the five-year mark is June 1 of the fifth year. You can redeem without penalty starting on that date.

After five years, there is no penalty no matter how long you hold the bond. You can redeem at any time. Series EE bonds continue to earn interest for 30 years from the issue date, so you are not forced to cash them in at any particular time.

What to do if you have lost a paper bond

If you cannot find a paper Series EE bond, you can file a claim with the Treasury Department. Complete Form 8888 (Statement Regarding Disposition of Savings Bonds) and submit it along with an affidavit stating that the bond is lost, stolen, or destroyed. You will also need to provide the bond's serial number, issue date, and denomination if you have that information.

Mail the form and affidavit to the Bureau of the Fiscal Service at the address listed on the form. The Treasury Department will search its records to confirm the bond exists and that you are the registered owner. If confirmed, they will issue a replacement bond or process a redemption. This process typically takes three to six months.

If you do not have the serial number or other details, include as much information as you can remember — the approximate purchase date, where you bought it, and the amount you paid. The Treasury Department can sometimes locate bonds using this information.

Tax reporting when you redeem

When you redeem a Series EE bond, the interest you earned is subject to federal income tax. You report this on your tax return for the year you redeem the bond. The bank or TreasuryDirect does not send you a tax form automatically — you calculate the interest yourself by subtracting the purchase price from the redemption amount.

Series EE bonds are not subject to state or local income tax. If you used the bond for education expenses (tuition or fees at an accredited school), you may be able to exclude some or all of the interest from federal tax, but you must meet specific requirements and report it on Form 8815. Consult a tax professional if you think you may have access to for this exclusion.

Redeeming bonds registered to a minor or in a trust

If a Series EE bond is registered in a child's name, a parent or legal guardian can redeem it on the child's behalf by presenting the bond and their own ID at a bank. The parent does not need a power of attorney or court order — the bank will process it as a normal redemption.

If a bond is held in a trust, the trustee can redeem it by presenting the bond, their ID, and a copy of the trust document at a bank. For electronic bonds in a trust held through TreasuryDirect, the trustee logs into the account and requests redemption the same way any account holder would.

Frequently Asked Questions

Can I redeem just part of a Series EE bond?

No. Series EE bonds are redeemed in full — you cannot cash in a portion and keep the rest in the same bond. If you own multiple bonds, you can redeem some and keep others. If you want to keep some of the money invested, you would need to purchase a new bond with the portion you want to reinvest.

What happens if I redeem before five years?

You lose three months of interest as a penalty. For example, if your bond has earned $100 in interest and you redeem after three years, you receive the principal plus $75 in interest (the $100 minus three months' worth). After five years, you keep all the interest earned.

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

Electronic bonds through TreasuryDirect arrive in your bank account within one to three business days. Paper bonds redeemed at a bank take one to two weeks because the bank must send the bond to the Federal Reserve for verification first.

Do I need to report the redemption to anyone besides the IRS?

No. You report the interest earned on your tax return, but you do not need to notify any other government agency. If the bond was held in a custodial account for a minor, the interest may be reported on the child's tax return instead of the parent's, depending on the child's income.

What if the bank says they cannot redeem my bond?

Some smaller banks or credit unions do not offer savings bond redemption services. If your bank declines, try another bank in your area — most larger institutions will redeem bonds. You can also mail the bond directly to the Federal Reserve, though this takes longer. Contact the Treasury Department at savingsbonds.gov for the mailing address.