What is the penalty for cashing in an Ee bond early?

Cashing in an EE bond early can result in the loss of interest if the bond is redeemed before it reaches its maturity date, which is typically 20 years. Specifically, if you redeem the bond within the first five years, you'll forfeit the last three months' worth of interest. After five years, you can cash it in without penalties, but you'll still receive only the interest earned up to that point.