How Long Do Savings Bonds Take to Mature?

Savings bonds are a secure, low-risk investment backed by the full faith and credit of the U.S. government. They are a loan an individual makes to the federal government, which uses these funds to support various activities. Bonds accrue interest over time, providing a return to the investor. Understanding their maturity, the point at which they cease to earn interest, is central for bondholders seeking to maximize their investment and manage their financial planning.

Types of Savings Bonds and Their Maturity Periods

The U.S. Department of the Treasury currently offers two primary types of savings bonds: Series EE and Series I bonds. Each type features distinct characteristics regarding interest accrual and maturity.

Series EE bonds are purchased at half their face value; for example, a $100 bond costs $50. They earn a fixed interest rate and are guaranteed to double in value after 20 years. These bonds continue to accrue interest for a total of 30 years from their issue date, after which they stop earning interest.

Series I bonds are purchased at their face value. They offer a unique interest rate structure, combining a fixed rate with a variable rate tied to inflation (Consumer Price Index for all Urban Consumers or CPI-U). The fixed rate is set at purchase, while the inflation rate adjusts every six months. Like Series EE bonds, Series I bonds have a final maturity of 30 years, after which they stop earning interest.

Historical savings bond series, such as Series H and HH bonds, are no longer issued. Some older bonds may still be held and earn interest, but their maturity periods vary; for instance, Series HH bonds stopped earning interest in 2024. For most current investors, the focus remains on Series EE and Series I bonds due to their continued issuance.

Determining Your Bond’s Maturity Date

Knowing the specific maturity date for your savings bonds is essential for financial planning. The method for determining this date depends on whether you hold electronic or paper bonds.

Electronic Bonds

For electronic bonds, the process is streamlined through TreasuryDirect, the U.S. Department of the Treasury’s online platform. Logging into your TreasuryDirect account allows you to access your bond portfolio, which displays crucial details like issue dates, current values, and maturity dates. This digital access helps monitor investments and anticipate when they will cease earning interest.

Paper Bonds

Paper savings bonds require a different approach. The issue date is printed on the bond. You can then apply the general 30-year maturity period for Series EE or Series I bonds. For a more precise understanding of a paper bond’s value and maturity, the TreasuryDirect website offers a Savings Bond Calculator. This tool allows you to input the bond’s series, denomination, and issue date to ascertain its current value, interest earned, and exact maturity date. The Treasury Hunt tool can also assist in locating matured, unredeemed older paper bonds by entering identifying information.

What Happens at Maturity

When a savings bond reaches its final maturity date, it stops accruing interest. Holding the bond past this date will not result in any further growth in its value. The bond’s value at this point represents the initial principal amount combined with all the interest accumulated over its lifespan.

All accrued interest on the bond becomes subject to federal income tax in the year the bond matures or is redeemed, whichever comes first. Interest earned on savings bonds is exempt from state and local income taxes. Bondholders can defer reporting federal interest until maturity or redemption, or choose to report it annually. Most individuals typically defer reporting until redemption or maturity. Upon maturity or redemption, a Form 1099-INT detailing total interest earned will be issued for tax reporting. Interest on Series EE and Series I bonds may be excluded from federal income tax if proceeds are used for qualified higher education expenses.

Redeeming Your Savings Bond

Once you have determined your bond’s maturity status and are ready to access its value, the redemption process varies depending on whether your bond is held electronically or in paper form.

Electronic Bonds

For electronic savings bonds held in a TreasuryDirect account, redemption is a straightforward online process. Log into your account, navigate to “ManageDirect,” and select “Redeem securities.” Choose the bonds, select the linked bank account for direct deposit, and confirm the transaction. Funds are typically transferred within two business days. You can redeem all or a portion of an electronic bond, provided the redeemed amount is at least $25 and at least $25 remains in the account if a partial redemption.

Paper Bonds

Redeeming paper savings bonds usually involves presenting the bond at a financial institution, such as a bank or credit union, that offers this service. You will need valid photo identification to prove ownership. For bonds valued over $1,000, your signature on the redemption form may require certification by a notary or an authorized certifying officer. If a local bank cannot assist, paper bonds can be mailed directly to Treasury Retail Securities Services, typically requiring FS Form 1522. All paper bonds must be redeemed in their entirety, unlike electronic bonds where partial redemption is possible.