Series hh bonds are current income securities issued for terms totaling 20 years, consisting of a 10year original maturity period and a 10year extension. Series ee savings bonds reach their full maturity date exactly 30 years after their date of purchase. As of publication, new series ee bonds were guaranteed to double the original investment amount in no more than 20 years. Proceeds were deposited into a general fund that supported antiterrorism efforts. And the bonds carried a floating rate portion of the interest, which changed every six months to keep up with the prevailing rate on treasury notes. 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. When it changes a guaranteed rate, treasury must announce the rate before the extended period starts. How long will it take my ee savings bonds to mature.
As of march 2015, newer bonds of the ee series mature in 30 years, hh series in 20 years and i series in 30 years. 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. Calculator will price series ee, series e, and series i savings bonds. For all ee bonds issued before may 1995, the guaranteed rate for extension. How long will it take for a savings bond to reach its face value. Find out what your savings bonds are worth with our online calculator. Features include current interest rate, next accrual date, final maturity date, and yeartodate interest earned. Since most americans enter college between 17 and 19, youd have to start planning awfully early, like, zygoteearly, in order to make a series ee investment part of your college financing plan. Savings bonds calculator series ee savings bonds faq. Accrual bonds that were issued at 75% of the face amount. Interest accrues monthly, and is compounded semiannually, that is, becomes part of. Series ee savings bonds earn interest for 30 years.
Ee bonds have two maturity dates and earn interest until final maturity. Series i savings bonds are lowrisk, relatively lowinterest vehicles that are meant to be held for years. Savings bonds issued between march 1993 and april 1995 had an original maturity period of 18 years. 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.
Series ee savings bonds with issue dates prior to may 1, 1995. 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. Consider your savings bonds tax implications sun sentinel. The rates and terms for an ee bond depend largely on when the bond was issued.
How to figure out the maturity date on a us savings bond. The effective interest rate on ee series savings bonds had to be a lot more than 0. Savings bonds are currently offered in two forms, series ee and series i bonds. Series bonds are compounded semiannually each may 1 and november 1. Penalty for a savings bond past final maturity budgeting. Individual may 1997 through april 2005 ee bond rates. All other series ee terms and conditions remain unchanged.
How long does it take for series ee savings bonds to reach face. Mar 01, 2019 series ee bonds mature after 30 years, meaning they can earn interest for that period of time. To get a good return, a series ee bond must be held to maturity a period of 20 years. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to double in value after 20 years. How long will it take for a savings bond to reach its face. Bonds are issued by month and their maturity dates depend on the type of bond you have and when you purchased it. If an ee bond has not earned enough interest to be worth an amount that is double its purchase price on the date it reaches original maturity, treasury will make a onetime adjustment on the original maturity date of the. For ee bonds with issue dates from june 1, 2003 through april 1, 2005, original maturity is 20 years after the issue date. This is a doubling of the original investment amount. For all ee bonds issued before may 1995, the guaranteed rate for extension periods entered on or after march 1993 has been 4 percent. Series ee series i savings bond redemption value tables. Before you move to cash in your bonds, check the issue date. Tip series ee savings bonds are now sold at face value and can earn interest for up to 30 years. If you can afford to tie up your money for 20 years, stocks may be a better investment.
The inflation or variable rate portion of an i bond is set at 1. The last paper ee bonds will reach final maturity in 2041. When an i or e savings bond matures is it worth more than. Series i savings bonds will earn a composite rate of 1. The us treasury produces two types of savings bonds. All series ee bonds issued since june 2003 take 20 years to mature. 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. Paper ee bonds, last sold in 2011, were sold at half of face value. Sep 14, 2015 interest rates and terms for series ee savings bonds. When the bond matures, the owner receives 100 percent of the face value. A second maturity date for series ee bonds is the time frame for a bond to double in value.
The case for ee bonds as a nominal investment is even more rock solid, and as long as the investor is positive, the bond can be held for 20 years, when its value doubles. Mar 23, 2020 savings bonds have been one of the most popular investments in the united states since 1935. Individual before may 1995 ee bond rates and terms. How to calculate interest on series e savings bonds. First, the required holding period for series ee bonds in order to trigger the special interest rate is 20 years. The interest rate of an hh bond was set on the day it was purchased and remained that rate for 10 years. But they dont reach final maturity until theyve been outstanding for 30 years, so yours will. Series ee bonds issued before june 2003 have a different maturity date or age at which they reach the face value for paper bonds. Series ee bonds issued may 2005 and after earn a fixed rate of interest.
Below is a quick overview of the three products and their differences. With that in mind, you can calculate the maturity date on. The oldest of your bonds still has another 10 years until final maturity. Nov 07, 2012 series hh bonds are current income securities issued for terms totaling 20 years, consisting of a 10year original maturity period and a 10year extension. Individual other treasury securities savings bonds. If your series ee savings bond was issued on may 2005 or later. 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. The treasury department recommends reinvesting or cashing in fully mature bonds. The fixed rate will be established for the life of the bond, including the extended maturity period, unless the secretary announces a different fixed rate or we amend the terms and conditions prior to the beginning of the extended maturity period. Individual may 1997 through april 2005 ee bond rates and terms. If you hold these bonds after the date of final maturity, it opens the door to a possible tax penalty andor fine for you.
Ee bonds are sold for half of the face value, and the u. Features include current interest rate, next accrual date, final maturity. Maturities, redemption values, and investment yields of series ee savings bonds. Series ee bonds mature after 30 years, meaning they can earn interest for that. Those ee bonds had a fixed, lifetime base rate that was set every six months for all bonds sold during that period. Savings bonds cannot be sold at market whereas tips can. May 30, 2019 even though series ee bonds dont reach full maturity until 30 years, you dont have to wait this long to cash in the bond. 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. Series e bond interest is reportable for federal income tax. How long does it take for series ee bonds to mature. When an i or e savings bond matures is it worth more than the. Penalty for a savings bond past final maturity budgeting money.
Beyond this, these bonds are guaranteed to double in value no later than 20 years after purchase. At that point, you can redeem your series ee bonds. This page covers series ee savings bonds issued between may 1997 and april. The maturity ages for bonds issued between may 1995 and may 2003 is 17 years. Series ee and series i bonds have interest rates that vary over the life. Series e bonds, referred to as defensive bonds, were a major source of financing in the period just before u. Series i bonds will change their interest rate every 6 months to track inflation while a newly purchased ee bond will not change rates at all. Series ee bonds are guaranteed to double in value over the purchase price when they mature 20 years from issuance, though they continue to earn interest for a total of 30 years. 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. An ibonds composite interest rate is calculated in two parts. Treasury will make a onetime adjustment on the original maturity date of the. Both series ee and series i bonds issued on or after february 1, 2003, have a 12month minimum holding period. A series ee bond is a fixedrate savings bond issued by the united states us treasury department which reaches its final maturity after 30 years.
Series ee bonds mature after 30 years, meaning they can earn interest for that period of time. When you redeem them, you must pay taxes on the interest that has been. The interest on an outstanding bond ceases to accrue 30 years after its issue date. The united states treasury department used to sell series ee bonds at half the face value with the. 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. Series i savings bonds what they are and how to buy them. Series ee bonds pay a fixed rate but are guaranteed to pay at least double the purchase price when they reach initial maturity at 20 years.
Mar 29, 2019 the us treasury produces two types of savings bonds. Even though series ee bonds dont reach full maturity until 30 years, you dont have to wait this long to cash in the bond. 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. Earlier bonds with a 17year initial maturity period have one 10year extended maturity period and a 3year final maturity period. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds. This special designation for series ee savings bonds offered americans a way to express support for our nations antiterrorism efforts. Interest is added to an ee bond monthly and paid when you cash the bond. 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. A penalty equal to the last three months of accumulated interest applies to bonds redeemed within five years of their issue date. The time it takes a savings bond to reach face value depends on the series of bond and.
Over their original maturities, the bonds increase in value to become worth at least the face amount. Paper ee bonds, last sold in 2011, were sold at half of face value more on rates and terms. Treasury bonds, you may have noticed some series ee savings bonds mature on different dates. If the owner of series ee bonds decides to extend the maturity date, series ee bonds continue to earn interest under the extension period terms. On november 1, 1982, the first floating series of ee bonds was sold with a. However, some reach maturity sooner depending on their builtin interest rate. Electronic series ee savings bonds, purchased via treasurydirect, are sold at face value.
If an ee bond does not double in value by the 20year maturity date, the. Series ee bonds dated january 1980 through march 1985 and series hh bonds dated january 1980 through march 1995 have also reached full maturity. Jan 08, 20 savings bonds issued between march 1993 and april 1995 had an original maturity period of 18 years. Interest rates and terms for series ee savings bonds. The exception is when a period of a different length is needed to complete the ee bonds total interestearning life span of 30 years. Ee bonds are guaranteed to double after a certain period of years. On april 30, 1941, roosevelt purchased the first series e bond from treasury secretary henry morgenthau, jr. When bonds are issued, an original maturity period is established. Ee bonds purchased between may 1997 and april 30, 2005, earn a variable rate of interest. Savings bonds calculator series ee savings bonds faq bankrate. Series ee bonds are a type of zerocoupon bond, which means you never receive interest income.
Interest is paid at redemption as part of the redemption value. Hh bonds were available only in exchange for series ee or series e bonds or upon reinvestment of matured series h bonds. 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. Series ee savings bonds issued may 2019 through october 2019 will earn an annual fixed rate of 0. The calculator will price series ee, series e, and series i savings bonds, and savings notes.
Aug 31, 2014 those ee bonds had a fixed, lifetime base rate that was set every six months for all bonds sold during that period. The length of time is takes for a series ee bond to mature, a period known as the term, depends on the issue date of the bond. 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 rates and terms for an ee bond depend largely on when the bond. Instead, the bonds are issued at deep discounts to face value and have been calculated to compound to the point that they are worth the face value of the bond on the maturity date, which is guaranteed by the treasury. After 30 years, your ee bonds stop earning interest. Series ee bonds are purchased at a discount of face value.