How to Redeem Series EE Savings Bond

U.S. Savings Bonds are popular investments with many Americans. Savings bonds are safe investments which earn tax-deferred interest over their lifespan. Series EE Savings Bonds are the most popular currently issued savings bonds. Bonds issued before April, 30, 2005 earn a variable interest rate, while Series EE bonds issued after that date earn a fixed rate of interest. Savings bonds can be cashed in without penalty once five years has passed from the date of issue. EE Bonds may also be redeemed just 12 months after issue, with a penalty equal to three months of interest.

Instructions

1. Verify that the savings bonds to be redeemed were issued in your name. U.S. Bonds are not transferable. If the bond was issued in someone else's name, that person will need to redeem the savings bond.

2. Determine the value of your EE Savings Bonds. The value of savings bonds is not constant. Bonds are sold at one-half the face value printed on the bond. For example, a $50 savings bond is sold for $25. The current value of the bond is equal to the amount paid to purchase the bond, plus the accrued interest. A savings bond calculator can tell you how much your bond is worth once you enter the serial number, face value, and issue date.

3. Determine the dollar amount of EE bonds to be redeemed. Redemption amounts greater than $1,000 must be handled by mail. Sign the request for payment on the back of the bonds in front of a bank officer. Fill in your Social Security Number, and mail the bonds to the service center.

4. Choose how to cash your Series EE Savings Bonds. There are three methods to redeem savings bonds. Paper bonds may redeemed in person or by mail.Savings bonds purchased electronically may be redeemed online.

5. Take the savings bonds to be redeemed to a bank if redeeming bonds in person. Most banks and financial institutions will cash savings bonds for their customers provided the name on the savings bonds matches the name registered on one or more open accounts. Larger institutions may also cash savings bonds for non-customers with proper identification which matches the name printed on the bond. Endorse the bonds and complete any deposit paperwork the bank requires.

6. Log into the Treasury Direct website to redeem bonds purchased online. Use the website to identify which bonds to redeem and submit the order. Funds will be electronically deposited in the bank account associated with the user account within one business day.

References

• Treasury Direct - Redeem Savings Bonds
• U.S. Treasury Savings Bond Value Calculator
• Treasury Retail Sites Locator