Savings bonds come in two varieties, series ee and series i. The us treasury produces two types of savings bonds. Treasury bonds, you may have noticed some series ee savings bonds mature on different dates. If your series ee savings bond hasnt reached maturity yet, but youre thinking of cashing it, first use the savings bond calculator on treasury direct to determine the bond s current value. Mar 01, 2019 series ee bonds mature after 30 years, meaning they can earn interest for that period of time. Beyond this, these bonds are guaranteed to double in value no later than 20 years after purchase. At that point, a savings bond will stop earning interest and has reached its final value. This special designation for series ee savings bonds offered americans a way to express support for our nations antiterrorism efforts. Series e bonds bought between may 1941 and november 1965 mature in 40 years, but if you bought the same type of bond between december 1965 and june 1980, it would mature in 30 years.
The latest date at which a series ee bond reaches its face. The maturity ages for bonds issued between may 1995 and may 2003 is 17 years. Series ee savings bonds issued may 2019 through october 2019 will earn an annual fixed rate of 0. If the hh bond carries deferred interest, you will receive. For all ee bonds issued before may 1995, the guaranteed rate for extension. May 30, 2019 if your series ee savings bond hasnt reached maturity yet, but youre thinking of cashing it, first use the savings bond calculator on treasury direct to determine the bonds current value. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds issued in 2020 take 20 years to reach their full face value. Electronic series ee savings bonds, purchased via treasurydirect, are sold at face value. Savings bonds bought through treasurydirect are electronic.
Series ee bonds issued from may 2005 onward have a fixed interest rate for as long as 30 years. Mar 23, 2020 savings bonds have been one of the most popular investments in the united states since 1935. Mar 08, 2020 series i savings bonds purchased through april 30 will have a permanent real yield of 0. Series i savings bonds are lowrisk, relatively lowinterest vehicles that are meant to be held for years. How long will it take for a savings bond to reach its face. Irs publication 550 states that once that savings bond passes its final maturity date, the interest accumulated over the life of the bond must be reported on that years federal tax return. Find out what your savings bonds are worth with our online. How long does it take for series ee bonds to mature. These rates create the minimum value that a bond is worth at each interest accrual date. Treasury sells the paper series ee savings bond at half of their face value.
The owner of the bond is paid the face value of the bond. The rates and terms for an ee bond depend largely on when the bond was issued. Ee savings bonds with issue dates after june 2003 have an original maturity date of 20 years from issue. Series ee bonds dated january 1980 through march 1985 and series hh bonds dated january 1980 through march 1995 have also reached full maturity. Series ee bonds mature after 30 years, meaning they can earn interest for that period of time. Physical paper certificate series ee savings bonds. The savings bonds work as zerocoupon bonds in which bond coupons, or interest payments, are added to the bonds principal value rather than paid out periodically. Treasury bonds have a 30year term and pay a fixed rate of interest on a sixmonth basis until they mature. Series ee savings bonds can be cashed in, with accrued interest, after 1 year with a 3month interest penalty, or 5 years with no interest penalty. Series ee savings bonds issued from may 1995 to april 2005 have a variable interest rate that changes every six months.
There are a couple of different types of united states savings bonds available for purchase including treasury bonds, i savings bonds, and eee savings bonds. When it changes a guaranteed rate, treasury must announce the rate before the extended period starts. Savings bonds calculator series ee savings bonds faq. The inflation or variable rate portion of an i bond is set at 1. Series ee savings bonds issue dated on or after may 1, 2005 will earn a fixed rate of interest for 20 years, at which time the bond should have reached its face value.
Maturities, redemption values, and investment yields of series ee savings bonds. When you buy the bond, you know what rate it will earn for at least the first 20 years. Obviously, ee bonds have a 20year holding period, and if you arent absolutely positive you can hold them 20 years, they dont make sense as an investment. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds. There are two types of savings bonds offered by the treasury, series ee and series i. Unlike ee bonds, hh bonds are currentincome securities. The rates and terms for an ee bond depend largely on when the bond. The advantage of series hh bonds was that they could be used to extend the tax deferral of interest on series ee bonds and provide income. Savings securities maturity chartseries eee, savings notes, series i, series hhh size.
When an i or e savings bond matures is it worth more than the. If you hold these bonds after the date of final maturity, it opens the door to a possible tax penalty andor fine for you. The last paper ee bonds will reach final maturity in 2041. First issued in 1980 as a replacement for the series e savings bonds, they have been offered ever since, though the rules applying to the bonds have changed several times. Mar 22, 2012 the effective interest rate on ee series savings bonds had to be a lot more than 0. Series i savings bonds what they are and how to buy them. Sep 14, 2015 interest rates and terms for series ee savings bonds. There are a couple of different types of united states savings bonds available for purchase including treasury bonds, i savings bonds, and ee e savings bonds. You paid face value and receive interest payments by direct deposit to your checking or savings account every six months until maturity or redemption. That means every year you have the opportunity to recalculate whether you are better off holding onto the bond and getting closer to your 20year 3. Both series ee and series i bonds issued on or after february 1, 2003, have a 12month minimum holding period.
The treasurys website will help you calculate the exact maturity date of your. Treasury announces the rate for new bonds each may 1 and november 1. Series ee savings bonds often called ee bonds are government savings bonds issued by the u. All ee savings bonds post their final maturity interest on the first day of the final maturity month.
Series ee savings bonds with issue dates prior to may 1, 1995. Series e bonds issued up to november 1965 earn or accrue interest for 40 years, and those issued on or after december 1965 do so for 30 years, when they reach final maturity. Individual other treasury securities savings bonds. Sep 05, 2019 obviously, ee bonds have a 20year holding period, and if you arent absolutely positive you can hold them 20 years, they dont make sense as an investment. How to figure out the maturity date on a us savings bond. A penalty equal to the last three months of accumulated interest applies to bonds redeemed within five years of their issue date. To get a good return, a series ee bond must be held to maturity a period of 20 years. When an i or e savings bond matures is it worth more than. The final maturity date of a savings bond is 30 years after issue. Individual before may 1995 ee bond rates and terms.
Guaranteed minimum rates apply to savings notes, e bonds and ee bonds issued before may 1995. Interest rates and terms for series ee savings bonds. If you can afford to tie up your money for 20 years, stocks may be a better investment. Ee bonds bought from may 1997 through april 2005 earn a rate of interest that changes every six. I bonds carry many benefits over tips, including taxdeferred. But both come with kickers that make them super deals. But, when the series ee bonds do reach maturity and stop paying interest, which will be 30 years from the purchase anniversary, you must pay taxes on the accumulated income. Bonds are issued by month and their maturity dates depend on the type of bond you have and when you purchased it. This is a doubling of the original investment amount. These securities are only available from original issue not through the commercial market. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to double in value after 20 years. Series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the bonds.
Some series ee bonds pay interest beyond the original maturity date. The series ee bond is a nonmarketable, interestbearing u. Both products, since theyre electronic, can be transferred to another treasurydirect account. The effective interest rate on ee series savings bonds had to be a lot more than 0. Penalty for a savings bond past final maturity budgeting money. An hh bonds face value may include deferred postponed interest from an earlier bond. Nov 29, 2018 series ee bonds issued before june 2003 have a different maturity date or age at which they reach the face value for paper bonds. It made money for you by earning interest every six months up to its final maturity date. The calculator will price series ee, series e, and series i savings bonds, and savings notes. With that in mind, you can calculate the maturity date on your bond by locating the. Savings bonds have been one of the most popular investments in the united states since 1935. The bond is issued at face value with a 30year final maturity a 20year original maturity period immediately followed by a 10 year extended maturity period. What happens if you cash in a savings bond before the. What is the investment yield interest during the original maturity period of series ee savings bonds with issue dates from january 1, 1980, through april 1, 1995.
Individual cashing redeeming series hh savings bonds. Series ee savings bonds have a total maturity period of 30 years from the issue date, consisting of an original maturity period and one or two periods of extended maturity, which vary depending on the issue date of the bond. May 01, 2020 for all ee bonds issued before may 1995, the guaranteed rate for extension periods entered on or after march 1993 has been 4 percent. The only context in which maturity periods are relevant is with guaranteed rates, which neither the ee nor the i bonds issued in 2004 have. Series ee savings bonds reach their full maturity date exactly 30 years after their date of purchase. The exception is when a period of a different length is. Earlier ee bonds had varying lengths of time to original maturity. Many people who purchased series ee bonds long ago have savings bonds worth far more than the face value of the bond because of the many years of accumulated interest. Ee bonds are sold for half of the face value, and the u. Penalty for a savings bond past final maturity budgeting.
Ee bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. The exception is when a period of a different length is needed to complete the ee bonds total interestearning life span of 30 years. The maturity for bonds issued from march 1993 until april 1994 is 18 years. Paper ee bonds, last sold in 2011, were sold at half of face value. Paper ee bonds, last sold in 2011, were sold at half of face value more on rates and terms. Ee bonds are guaranteed to double after a certain period of years. The series ee bond is a nonmarketable, interestbearing savings.
How long will it take my ee savings bonds to mature. Over their original maturities, the bonds increase in value to become worth at least the face amount. The term maturity simply refers to the date at which the bond stops earning interest. If your series ee savings bond hasnt reached maturity yet, but youre thinking of cashing it, first use the savings bond calculator on treasury direct to determine the bonds current value. The interest on an outstanding bond ceases to accrue 30 years after its issue date. For all ee bonds issued before may 1995, the guaranteed rate for extension periods entered on or after march 1993 has been 4 percent. The drastically different maturity dates for these bonds result from the differing rates of interest built into each series ee bond when it is issued. Thats 30 years from the date of purchase for most bonds, although series e bonds purchased before november 1965 matured 40 years from the date of purchase. Proceeds were deposited into a general fund that supported antiterrorism efforts. With that in mind, you can calculate the maturity date on.
How long will it take for a savings bond to reach its face value. Features include current interest rate, next accrual date, final maturity date, and yeartodate interest earned. A second maturity date for series ee bonds is the time frame for a bond to double in value. It doesnt have to mature before you can ask the government for your money back plus interest earned. Among savings bonds that have fully matured and stopped earning interest are entire series of older bonds such as a through d, f, g, j and k. A bonds guaranteed minimum rate is established when the bond is issued and is subject to change at the beginning of each extended maturity period. Questions and answers about series ee savings bonds issued may 1995 through april 1997 size. Investors can buy series ee bonds amounts to the penny.
Mar 29, 2019 the us treasury produces two types of savings bonds. Find out what your savings bonds are worth with our online calculator. All series ee bonds reach final maturity 30 years from issue. Aug 31, 2014 but, when the series ee bonds do reach maturity and stop paying interest, which will be 30 years from the purchase anniversary, you must pay taxes on the accumulated income. All series ee bonds issued since june 2003 take 20 years to mature.
The series i bond is an accrual type savings bond tied to inflation. Earlier bonds with a 17year initial maturity period have one 10year extended maturity period and a 3year final maturity period. An ibonds composite interest rate is calculated in two parts. Series ee bonds issued before june 2003 have a different maturity date or age at which they reach the face value for paper bonds.
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