All U.S. savings bonds have a final maturity date when they stop earning interest. The length of time savings bonds earn interest depends on the bond series and the issue date. It’s important to remember that if you keep savings bonds past final maturity, your money stops working for you.
What happens to savings bonds after maturity?
When a savings bond matures, you get the principal amount plus all of the accrued interest. After the maturity date the bond stops earning interest. If you own paper savings bonds, you must present them at a bank or other financial institution for payment.
What to do with US savings bonds that have matured?
If you discover that your savings bonds have matured, you should cash them in and invest the money elsewhere. If you have paper bonds, contact your bank to see if it cashes savings bonds (not all banks do, and some will cash in savings bonds only for customers who have had accounts for at least six months).
What happens to my savings bond when it matures?
However, with a bond past its maturity, you should have reported the interest for the tax year when the bond matures. Then, possibly years later, you cash the bond and get a 1099 for the interest. The 1099-INT will show that the interest was earned in the year the bond reached final maturity.
When does a series E savings bond mature?
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. All EE bonds mature in 30 years.
What happens if you hold Series EE bonds for 20 years?
If you hold your bonds for 20 years and they still haven’t reached their full face value, the Treasury will perform a one-time adjustment to bring up the bond’s value so that you can cash it in for its full amount. For example, the paper certificate versions of Series EE savings bonds are issued at half of the face value.
When does a savings bond stop earning interest?
All U.S. savings bonds have a final maturity date when they stop earning interest. Investors often lose track of this date because the U.S. Treasury Department has extended the original maturity of some bonds up to 30 years. EE bonds earn interest until final maturity, which is 30 years from the date of issue.
