How to cash in EE bonds (2024)

Key points

• Electronic and paper EE bonds have distinct cashing procedures.
• You can cash EE bonds early, but penalties may apply.
• Cash limits vary depending on the type of EE bond and where you cash it.

Imagine this: You stumble upon a vintage chest containing a dusty envelope in your attic. You peek inside and see that it’s packed with EE savings bonds, remnants of your family’s diligent savings habits. Like unearthing a time capsule, the discovery elicits a wave of nostalgia — and presents a delightful monetary opportunity.

Once upon a time, EE bonds were America’s favorite long-term savings tool. Even though flashier investment options may have overshadowed them over the years, EE bonds have been silently maturing. If yours have been idle for a few decades, you have some financial fruit ripe for the picking.

Not sure how to go about it? Luckily, there’s a road map for turning that trove of bonds into cash.

What are EE bonds?

An EE bond is a savings bond with a fixed rate of return based on its issue date. While EE bonds may seem humble, they pack quite a punch.

Don’t take our word for it, though. Here’s what Ryan Yonk, an economist at the American Institute for Economic Research, had to say about EE bonds.

“During the last 18 to 24 months, the rate of return on EE bonds has been higher than typical as the Fed has increased interest rates and inflation has increased,” Yonk said. “The U.S. Treasury guarantees that if (EE bonds) are held for at least 20 years, their value will double. The guarantee stands even if the rate of return, known as the coupon rate, doesn’t naturally double the investment within that time.”

EE bonds offer an appealing blend of security and growth, irrespective of market fluctuations. Now that you know what they are, discover how to get your hands on these unique financial instruments.

How to buy EE bonds

New EE bonds are electronic only. You must have a TreasuryDirect account to buy and manage them. If you’re interested in buying EE bonds, follow these steps to get started:

1. Log in to your TreasuryDirect account.
2. Click BuyDirect.
3. Choose EE bonds and then click Submit.
4. Follow the prompts to fill out the rest of the information.

It’s that simple. You’re well on your way to becoming an EE bondholder.

How to cash in series EE bonds

Whether you discovered a collection of EE bonds passed down from thoughtful relatives or bought EE bonds yourself, the ultimate goal isn’t to acquire these savings vehicles. It’s to cash them in when the time is right. Read on to learn how to do so.

Electronic EE savings bonds

Technology has made many things easier, including managing your EE bonds. If you have electronic EE savings bonds, the process of cashing them is straightforward and takes just a few clicks:

1. Log in to your TreasuryDirect account.
2. Go to ManageDirect.
3. Use the link for cashing securities.

The key is ensuring that you’ve kept your electronic records safe and secure.

Paper EE savings bonds

If you have paper EE bonds, the process differs. You may be able to cash in paper EE bonds at a bank where you have an account or through TreasuryDirect.

At a bank where you have an account

1. Ask your bank about its process for cashing savings bonds.
2. Ask your bank how much it will cash at one time.
3. Determine the identification or other documents you will need.

Note: Not all banks cash savings bonds. Those that do vary in how much they will cash at one time.

Through TreasuryDirect

1. Download and complete FS Form 1522.
2. Have your signature certified if the value of the bonds you are cashing is more than $1,000. See FS Form 1522 for more about this requirement.
3. Mail the completed form and your bonds to the address listed on FS Form 1522.

Every step you take is one step closer to unlocking the value of your savings bonds.

Can I cash an EE savings bond early?

Here’s a question that may have popped into your mind while navigating the world of EE savings bonds: Can you cash them early? You may be staring at your newly discovered or newly purchased bonds and wondering if you must wait until they hit maturity to cash them.

Well, good news, folks.

“An EE bond can be cashed in early but no earlier than 12 months after its purchase,” said Peter Earle, an economist at the American Institute for Economic Research. “But cashing in the bond earlier than five years after purchasing it brings a three-month interest penalty.”

Simply put, if you cash in the bond after the first year but before the fifth year, you will lose the last three months of interest. If you need money in a pinch, cashing in your EE bonds may be an option. But remember that there’s a trade-off.

Ultimately, as is the case with any financial decision, timing is everything. Consider your situation and needs to make the best choice given your goals.

How much can I cash at a time?

Now that you know how and when to cash EE bonds, let’s tackle how much you can cash at one time. Whether you’re holding electronic EE bonds or paper EE bonds, there are specifics to remember.

Electronic EE bonds offer a bit more flexibility:

• You can cash any amount of $25 or more to the penny.
• If you cash only part of a bond, you must leave $25 or more in your account.
• If you cash only part of a bond, you’ll get interest only on the part you cash.

The rules for paper EE bonds are more rigid:

• You can’t cash part of a paper savings bond. A paper bond must be cashed for its entire value.
• If you plan to cash your bonds at a bank, remember that policies vary. Some banks limit how much you can cash at one time. Others don’t cash savings bonds at all.
• With TreasuryDirect, there’s no limit on the value or number of savings bonds you can cash in at one time as long as the bonds meet the cashing requirements.

In summary, the amount you can cash at any given time depends on the type of EE bond and where you cash it. Understanding the limits and rules can help you plan your financial moves strategically and with minimal fuss, whether you’re looking to cash in a little or a lot.

Frequently asked questions (FAQs)