To cash in EE savings bonds, take paper bonds to a bank where you have an account, redeem electronic bonds by logging in to your TreasuryDirect account, or mail paper bonds to the Treasury with FS Form 1522. You have to hold any EE bond for at least 12 months before you can redeem it, and cashing before the five-year mark forfeits the last three months of interest.1TreasuryDirect. Cashing EE or I Savings Bonds
When You Can Cash and When You Should
The 12-month hold is firm. Treasury waives it only in narrow circumstances, such as when a disaster caused you to lose the bond.2TreasuryDirect. Get Help for Lost, Stolen, or Destroyed EE or I Savings Bond
Between year one and year five, you can cash the bond, but you give up the most recent three months of interest.3eCFR. Subpart B – Maturities, Redemption Values, and Investment Yields of Series EE Savings Bonds A bond that has earned 18 months of interest pays out 15 months’ worth. After five years, no penalty applies.
Two later milestones matter if you have any flexibility on timing. EE bonds issued after May 2005 carry a Treasury guarantee that the bond will be worth at least twice its purchase price at 20 years; if the stated fixed rate hasn’t gotten you there, Treasury makes a one-time adjustment at that mark.4TreasuryDirect. About U.S. Savings Bonds Cash a day before year 20 and you get only what the fixed rate produced. At 30 years, the bond reaches final maturity and stops earning interest.5eCFR. 31 CFR 351.5 – What Is the Maturity Period of a Series EE Savings Bond There is no reason to hold past that date; you’ll owe federal income tax on the accumulated interest whether you redeem or not.
Check the Value Before You Redeem
For paper bonds, use the free Savings Bond Calculator on TreasuryDirect. Enter the series, denomination, and issue date, and the tool returns the current value and the interest earned to date.6TreasuryDirect. Savings Bond Calculator – Detailed Instructions For electronic bonds, log in to TreasuryDirect; your holdings page shows each bond’s current value.
Cashing Paper Bonds at a Bank
A local bank or credit union is the simplest route. Call first. Many banks only cash savings bonds for existing account holders, and some won’t process bonds for customers whose account is less than 12 months old.7TreasuryDirect. The Guide to Cashing Savings Bonds – FS Publication 0022 If the bonds total more than $1,000 and you aren’t an established customer, the bank may send you to the mail-in process instead.
Bring a current government-issued photo ID (driver’s license or passport) along with the bond certificates. You sign the back of each bond in front of the bank employee. Don’t sign ahead of time; the signature has to happen at the counter as a security step.8Federal Reserve Financial Services. Savings Bond Redemptions Frequently Asked Questions The teller verifies your identity and either deposits the funds or pays you cash.
If the bond names two co-owners, either one can cash it alone. No signature or permission from the other owner is required.1TreasuryDirect. Cashing EE or I Savings Bonds
Cashing Electronic Bonds Through TreasuryDirect
Electronic bonds live inside your TreasuryDirect account, and that’s where you redeem them. You’ll need a Social Security number, a U.S. address, and a linked checking or savings account for the payout.9TreasuryDirect. Open an Account Open your current holdings, pick the bond, confirm the amount, and Treasury transfers the money to the linked bank account.
Electronic bonds allow partial redemption. You can cash as little as $25 at a time, as long as at least $25 stays in the bond.1TreasuryDirect. Cashing EE or I Savings Bonds The remainder keeps earning interest.
Mailing Paper Bonds to Treasury
If no bank will handle your bonds, send them to Treasury directly.
- Fill out FS Form 1522 with the serial number, issue date, and registered name for each bond, plus the routing and account numbers for the bank account that should receive payment.10Department of the Treasury. Special Form of Request for Payment of United States Savings and Retirement Securities – FS Form 1522
- If the total redemption value is more than $1,000, your signature on the form must be certified before you mail it.1TreasuryDirect. Cashing EE or I Savings Bonds
- Mail the form and the original bond certificates to Treasury Retail Securities Services, P.O. Box 9150, Minneapolis, MN 55480-9150.10Department of the Treasury. Special Form of Request for Payment of United States Savings and Retirement Securities – FS Form 1522
Use certified or registered mail. The bonds are irreplaceable in transit, and you want a tracking record. Once Treasury verifies the package, the funds go to the account on the form.
Who Can Certify Your Signature
A notary public or an officer at a bank or credit union is the easiest option for most people.11TreasuryDirect. Forms Signature Certification Commissioned or warrant officers of the U.S. Armed Forces can certify for service members and their families, a judge or clerk of a U.S. court can certify, and U.S. diplomatic or consular officials can handle it if you’re abroad. Notary fees for this kind of signature typically run $5 to $15.
Federal Income Tax on the Interest
EE bond interest is subject to federal income tax but exempt from state and local income tax.12TreasuryDirect. Tax Information for EE and I Bonds Only the interest is taxed; the principal you paid for the bond is not.
When a bank cashes your bond, it issues you a Form 1099-INT either shortly after the transaction or by January 31 of the following year. If you redeem through TreasuryDirect, the 1099-INT appears in your online account by January 31.12TreasuryDirect. Tax Information for EE and I Bonds The form reports the entire lifetime interest on the bond, because most owners defer reporting until redemption. The amount shows up in Box 3, the line reserved for U.S. Savings Bond and Treasury interest.13Internal Revenue Service. Form 1099-INT
Using the Bonds for Higher Education
If you plan to spend the proceeds on qualified higher education expenses in the same year you cash the bonds, you may be able to exclude the interest from federal income tax entirely under the Education Savings Bond Program.14Office of the Law Revision Counsel. 26 USC 135 – Income From United States Savings Bonds Used to Pay Higher Education Tuition and Fees The rules are strict:
- The bond must have been issued after December 31, 1989.
- You must have been at least 24 years old before the bond’s issue date. A bond registered in a child’s name does not qualify; the parent has to be the owner.15TreasuryDirect. Using Bonds for Higher Education
- Qualified expenses include tuition and required fees at an eligible institution and contributions to a 529 plan or Coverdell ESA. Room and board, hobby courses outside a degree program, and expenses already covered by other tax-free education benefits don’t count.16Internal Revenue Service. Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989 – Form 8815
- The expenses must be for you, your spouse, or a dependent you claim on your federal return.
Income limits apply. For taxable years beginning in 2026, the exclusion starts phasing out at a modified adjusted gross income of $152,650 for joint filers and $101,800 for everyone else, and disappears at $182,650 for joint filers and $116,800 for everyone else.17Internal Revenue Service. 2026 Adjusted Items Within the phase-out range, only part of the interest is excluded. Claim the exclusion on IRS Form 8815 with the return for the year you cashed the bonds.