Which EE bonds are no longer earning interest?
All Series E
Series E, Series EE and Savings Notes issued after November 1965 will stop earning interest 30 years from their issue dates, as is already the case with Series H bonds.
The only savings bonds that still earn interest are I bonds and some EE and HH bonds. For those, you must look at the issue date. EE and I bonds earn interest for 30 years from the issue date. HH bonds earn interest for 20 years from the issue date.
All Series EE bonds reach final maturity 30 years from issue. Series EE savings bonds purchased from May 1995 through April 1997 increase in value every six months.
You can receive years of “extra” interest by holding the bond beyond the maturity date, but once 30 years have passed, you won't accrue any extra interest. If you want full value, you should hold the Series EE bonds at least until maturity, and if you want extra, you can hold them until 30 years.
I bonds, with their inflation-adjusted return, safeguard the investor's purchasing power during periods of high inflation. On the other hand, EE Bonds offer predictable returns with a fixed-interest rate and a guaranteed doubling of value if held for 20 years.
The interest rate on I bonds is adjusted every six months depending on inflation. With TIPS, it's the principal that's adjusted. Either way, both are hedges against inflation. In contrast, an EE bond has a fixed interest rate that's determined at the time you buy it.
| Face Value | Purchase Amount | 30-Year Value (Purchased May 1990) |
|---|---|---|
| $50 Bond | $100 | $207.36 |
| $100 Bond | $200 | $414.72 |
| $500 Bond | $400 | $1,036.80 |
| $1,000 Bond | $800 | $2,073.60 |
You can get your cash for an EE or I savings bond any time after you have owned it for 1 year. However, the longer you hold the bond, the more it earns for you (for up to 30 years for an EE or I bond). Also, if you cash in the bond in less than 5 years, you lose the last 3 months of interest.
While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.
Can you still cash EE bonds at a bank?
Where do I cash in a savings bond? You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks.
EE bonds you buy now have a fixed interest rate that you know when you buy the bond. That rate remains the same for at least the first 20 years. It may change after that for the last 10 of its 30 years. We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.
It's a good idea to hang on to your bond for as long as possible, ideally until it matures, so you can take full advantage of compound and accrued interest. Here's how that decision might pay off with EE bonds. Let's say you purchased the maximum of $10,000 in EE bonds today, with the current interest rate of 2.10%.
After 20 years, the Patriot Bond is guaranteed to be worth at least face value. So a $50 Patriot Bond, which was bought for $25, will be worth at least $50 after 20 years. It can continue to accrue interest for as many as 10 more years after that.
Interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income. The interest that savings bonds earn is the amount that a bond can be redeemed for above its face value or original purchase price.
Most bonds can be cashed in after one year, but you will lose three months' worth of interest if you cash them in before five years.
Electronic Series EE Bonds are sold at face value and are worth their full value when available for redemption. The minimum term of ownership is one year, but a penalty is imposed if the bond is redeemed in the first five years. The bonds earn interest for 30 years.
The interest your EE bonds earn is generally subject to federal income taxes. But you can wait to pay the taxes until the bond matures or you cash it. Your EE bonds' interest is not subject to state or local income taxes. Using the money for higher education expenses may also help you avoid federal income taxes.
It is part of your long term fixed income allocation. In that case, I will still recommend I bonds over EE bonds. It will provide some inflation protection in case inflation gets high again. The fixed rate of 1.3% is good for an I bond.
If you still have a paper EE bond, check the issue date. If that date is more than 30 years ago, it is no longer increasing in value and you may want to cash it. See Cashing EE and I savings bonds. To find out how much your paper EE savings bond is worth, use our Savings Bond Calculator.
How do I know if I have a Series EE savings bond?
Series–The series can be found in the upper right corner of your paper savings bond. This Calculator provides values for paper savings bonds of these series: EE, I, E. Denomination–The face value as shown in the upper left corner of your paper bond.
The only option for cashing electronic savings bonds is by logging in to your TreasuryDirect account online. If you have paper savings bonds, you can fill out the appropriate form and mail it and the bonds you want to cash to the Treasury Retail Securities Services — the address is listed on FS Form 1522.
When Do Savings Bonds Mature? U.S. Savings Bonds mature after 20 or 30 years, depending on the type of bond: Series EE bonds mature after 20 years. They are sold at half their face value and are worth their full value at maturity.
Series EE bonds mature in 20 years but earn interest for up to 30 years. The U.S. Treasury guarantees Series EE bonds will double in value in 20 years. You don't receive the interest on your Series EE bond until you cash it.
EE Bond and I Bond Differences
The interest rate on EE bonds is fixed for at least the first 20 years, while I bonds offer rates that are adjusted twice a year to protect from inflation. EE bonds offer a guaranteed return that doubles your investment if held for 20 years. There is no guaranteed return with I bonds.
