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Redeeming an EE Bond

You can redeem an EE Bond in person for paper bonds or online for electronic bonds. It is also possible to covert a paper bonds to an electronic bond to consolidate your bonds.

EE Bonds earn interest for 30 years, at which time they have matured and will stop earning interest. You can redeem an EE Bond before the bond has matured and collect the interest up that point. There is a minimum term of ownership of 1 year during which the bond can not be redeemed. Between 1 year and 5 years, the redemption of the bond results in a penalty of 3 months interest. The minimum holding period and redemption penalties are in place because the U.S. Treasury considers savings bonds as long-term savings vehicles for the average investor.

Redeeming Paper EE Bonds

Most financial institutions can redeem an EE Savings Bond. To redeem a bond, you must sign the back of the bond to authorize redemption and turn over the bonds to the bank. You will need to verify your identity, so remember to bring along identification, such as a driver's license or passport. Some banks may require you to be a current customer.

If you are redeeming more than $1,000 for cash, some banks may not allow the entire amount to be processed in one day or otherwise limit your ability to redeem the bonds. If this happens, you can redeem the bonds by sending them to your closest Treasury Retail Securities Site. In this case, you must sign the request for payment on the back of the bonds before a certifying officer at the bank, provide your social security number, and then mail the bonds to your closest Treasury Retail Securities Site. You can find the closest location by using the TreasuryDirect locator available at http://www.treasurydirect.gov/FC/FCGateway?site=indiv&app=sav. You must mail the bonds as the physical location does not process redemption transactions.

Redeeming Electronic EE Bonds

Electronic EE Bonds can be redeemed using the TreasuryDirect website, which is where the bonds were either purchased or converted from paper to electronic form. The redemption process takes you through several steps, from selecting the bond you wish to redeem to selecting the bank account you wish the redeemed funds to be transferred to.

Converting Paper Bonds to Electronic Bonds

Paper EE bonds can be converted to electronic bonds with TreasuryDirect. Once you have a TreasuryDirect account, you can use the SmartExchange feature to convert your bonds. You can read more about the SmartExchange program on the TreasuryDirect site: http://www.treasurydirect.gov/indiv/research/indepth/smartexchangeinfo.htm





Page last modified 1/31/2012