Can you cash savings bonds early?
Yes, after 12 months. Before 5 years the last 3 months of interest are forfeited. The rules, with examples from Treasury's own value file.
United States Savings Bond Values & GuidanceUpdated Values current through October 2026
You can cash a Series EE or I savings bond any time after you have owned it for 12 months. Before it is 5 years old you give up the last 3 months of interest, and that cost is already built into the value Treasury publishes. Below: the rules as TreasuryDirect states them, what the penalty looks like in Treasury's own value file, and the questions to answer before cashing.
- Yes, after 12 months. EE and I bonds cannot be cashed in their first 12 months (EE bonds, I bonds).
- Cash one before it is 5 years old and you lose the last 3 months of interest: cashed after 18 months, a bond pays the first 15 months of interest (TreasuryDirect).
- The penalty is already taken out of the values TreasuryDirect and its calculator show for bonds under 5 years old, so the value you look up is what you would be paid (TreasuryDirect).
- After 5 years there is no penalty. EE and I bonds keep earning for 30 years (TreasuryDirect).
- In an officially declared disaster area, Treasury lets you cash bonds even if they are less than a year old (TreasuryDirect: affected by a disaster).
The rules
| Bond age | Can you cash it? | What you get |
|---|---|---|
| Under 12 months | No (except in a declared disaster area) | - |
| 12 months to 5 years | Yes | Value minus the last 3 months of interest |
| 5 to 30 years | Yes | Full value, no penalty |
| Over 30 years | Yes | Full value; the bond stopped earning at 30 years |
The rule is the same for EE and I bonds, paper or electronic (TreasuryDirect: EE bonds, I bonds, comparing EE and I bonds). TreasuryDirect's example: cash a bond after 18 months and you get the first 15 months of interest. For bonds under 5 years old, "values shown in TreasuryDirect and the Calculator don't include the last three months of interest" (TreasuryDirect), and the value tables on this site come from the same Treasury file. You never pay a penalty out of pocket; the bond is simply worth a little less than it would be without one.
Two more limits: a paper bond must be cashed for its entire value, while an electronic bond can be cashed in part (at least $25, leaving at least $25 in the account) (TreasuryDirect: cashing EE or I bonds). HH bonds and the older series are covered on where to cash savings bonds; they have all stopped earning.
Worked examples from Treasury's value file
$1,000 of Series I bonds by issue month, valued for (Treasury publishes values per $25; $1,000 is exactly 40 times that). "Change" is the increase from September 2026.
| Issued | Age in October 2026 | Value of $1,000 | Change in a month | Where it stands |
|---|---|---|---|---|
| 11 mo | not cashable | - | Under 12 months old: cashable from . | |
| 1 yr | $1,030.80 | - | Cashable, with the penalty: the value includes the first 9 months of interest. | |
| 3 yr | $1,113.20 | $4.00 | Cashable, with the penalty: the value includes the first 33 months of interest. | |
| 4 yr 11 mo | $1,233.20 | $3.60 | Cashable, with the penalty: the value includes the first 56 months of interest. It turns 5 in November 2026, when Treasury's published value is $1,246.80. | |
| 5 yr | $1,248.00 | $12.80 | 5 years old this month: no penalty. The 3 held-back months of interest were added back. |
Look at the bond that turned 5 this month: its value rose $12.80 in October 2026, against $3.20 the month before. That step is the penalty coming off: the month's normal interest plus the 3 months that had been held back, added at once. A bond a month or two short of 5 years gets that step only by waiting until its 5-year month.
These are figures for paper I bonds from the Treasury value file, the data behind TreasuryDirect's calculator. An electronic bond's exact value is shown in your TreasuryDirect account and can differ by cents. Look up any bond with the savings bond calculator.
EE bonds: the 20-year guarantee is the bigger cost
For an EE bond, a second date matters as well as the 5-year mark: 20 years. Treasury guarantees that an EE bond bought since June 2003 will be worth at least twice what you paid for it at 20 years, and makes a one-time adjustment at 20 years if needed (TreasuryDirect: EE bonds since May 2005). Paper EE bonds sold for half their face value, so for a paper EE bond that means reaching face value at 20 years. Cash it before 20 years and the adjustment never happens.
The value file shows the guarantee working. A $100 paper EE bond issued cost $50.00. It was worth $94.08 in , one month short of 20 years, and $100.00 in , when it turned 20 and Treasury made the one-time adjustment. Cashing it a month early would have left the difference behind.
Paper EE bonds that have not yet reached 20 years and are still below double their price (May issues, values as of October 2026):
| Issued | Cost of a $100 paper EE | Value, October 2026 | Guaranteed at 20 years |
|---|---|---|---|
| $50.00 | $96.20 | $100.00 in | |
| $50.00 | $64.64 | $100.00 in | |
| $50.00 | $56.60 | $100.00 in | |
| $50.00 | $62.88 | $100.00 in | |
| $50.00 | $59.20 | $100.00 in |
Disasters and hardship
If you live in an area with an official disaster declaration (TreasuryDirect points to fema.gov for the list), Treasury lets you cash savings bonds even if they are less than a year old, and even if paper bonds are lost, illegible, or contaminated (TreasuryDirect: affected by a disaster). The steps it gives:
- Electronic bonds under a year old: call 844-284-2676 and explain the circumstances, or send a certified FS Form 5512 with DISASTER written on the envelope and at the top of the form's first page.
- Undamaged paper bonds: follow the usual FS Form 1522 mail process and write DISASTER on the envelope and the top of the form's first page; Treasury says it gives those requests priority.
- Lost or damaged paper bonds: FS Form 1048 marked DISASTER, with the form but not the bonds mailed to Treasury Retail Securities Services, P.O. Box 9150, Minneapolis, MN 55480-9150.
The disaster page describes waiving the one-year holding requirement. It does not say anything about the 3-month interest penalty. Separately, Treasury's guide for banks says that "in the event of financial hardship or certain designated disasters, exceptions may be available for quicker redemptions" and directs those cases to Treasury Retail Securities Services at 844-284-2676 (FS Publication 0022). The guide does not spell out what qualifies as hardship.
Deciding whether to cash now
- Is the bond at least 12 months old? If not, it cannot be cashed unless the disaster rules apply.
- Is it under 5 years old? You will be paid the value you look up, which already excludes 3 months of interest. If the bond is close to 5 years, the examples above show what waiting for the 5-year month adds.
- Is it an EE bond issued June 2003 or later and under 20 years old? Cashing gives up the doubling guarantee; check how far the value is from double the purchase price.
- Is it past 30 years? It no longer earns anything, so there is nothing to wait for. See matured savings bonds.
- Which tax year? The interest is reportable for the year you cash the bond (or the year it matures, if sooner), and is exempt from state and local income tax. See how savings bonds are taxed.
Ready to cash: how to cash savings bonds walks through the bank, mail and TreasuryDirect routes.
Frequently asked questions
Can savings bonds be cashed early?
Yes, once you have owned them for 12 months. Series EE and I bonds cannot be cashed in their first 12 months. If you cash one before it is 5 years old, you lose the last 3 months of interest; after 5 years there is no penalty. Source: TreasuryDirect.
What is the penalty for cashing a savings bond before 5 years?
The last 3 months of interest. TreasuryDirect's example: cash a bond after 18 months and you get the first 15 months of interest. The values shown by TreasuryDirect and its calculator for bonds under 5 years old already leave those 3 months out.
Can you cash a savings bond before 12 months?
Normally no. The exception TreasuryDirect publishes is for people in an area with an official disaster declaration, who may cash bonds even if they are less than a year old. Treasury's guide for banks also says hardship exceptions may be available through Treasury Retail Securities Services at 844-284-2676.
Is the early withdrawal penalty the same for EE and I bonds?
Yes. Both series can be cashed after 12 months, and both lose the last 3 months of interest if cashed before 5 years. For EE bonds issued since June 2003, cashing before 20 years also gives up Treasury's guarantee that the bond doubles in value at 20 years.
How much more is a bond worth once it turns 5?
The 3 held-back months of interest are added in the month the bond turns 5. In Treasury's value file, $1,000 of I bonds issued October 2021 rose $12.80 in October 2026, its 5-year month, compared with $3.20 the month before.
Related: Where to cash savings bonds · FS Form 1522 · How much a savings bond costs · How to cash savings bonds · Savings bond calculator · Savings bond taxes · Inherited savings bonds · Matured savings bonds.
Rules are quoted from TreasuryDirect and linked where they appear. Dollar figures are the U.S. Treasury's published redemption values (Savings Bonds Value Files), scaled exactly by denomination. This site is independent of the Treasury; nothing here is investment, tax, or legal advice.