How Much Is a $100 Savings Bond Worth After 30 Years?

U.S. savings bonds are a straightforward and accessible investment avenue. These government-backed securities offer a secure way to save, often held for many years until maturity. Understanding the current value of these bonds, particularly after 30 years, is a common inquiry for bondholders.

Savings Bond Types and Interest Accrual

Two primary types of savings bonds are Series EE and Series I bonds. Series EE bonds typically earn a fixed interest rate determined at issuance. For newer Series EE bonds, the U.S. Treasury guarantees that the bond will at least double in value after 20 years. These bonds continue to earn interest for up to 30 years from their issue date.

Series I bonds, designed to protect against inflation, offer a unique interest rate structure. This combines a fixed rate, constant for the bond’s life, and a variable inflation rate that adjusts every six months based on the Consumer Price Index. The total interest rate on an I bond can fluctuate, providing a defense against rising prices. Both Series EE and Series I bonds accrue interest monthly, with interest compounded semi-annually. This means earned interest is added to the principal every six months. Compounding continues until the bond reaches its 30-year final maturity, after which it stops earning interest.

Finding Your Bond’s Current Value

Determining the current value of your savings bond involves utilizing specific tools provided by the U.S. Treasury. For paper savings bonds, the primary method is the TreasuryDirect Bond Value Calculator. To use this calculator, input key information from your bond, including its series (e.g., EE, I), the denomination, and the issue date, which is typically printed on the physical bond. The calculator will then display the bond’s current value and the interest it has earned.

For electronic savings bonds held within a TreasuryDirect account, their current value can be easily accessed by logging into your account and checking your current holdings. For very old or lost paper bonds, contacting TreasuryDirect directly may be necessary for assistance.

Cashing In Your Savings Bond

The process for cashing in your savings bond varies depending on whether you hold a paper or electronic bond. For paper savings bonds, redemption can typically be completed at most local banks and credit unions. When visiting a financial institution, bring the physical bond(s) along with a valid government-issued photo identification, as you will need to verify your identity. Savings bonds have a minimum holding period of one year, and cashing them before five years results in a penalty of the last three months’ interest.

Electronic savings bonds held in a TreasuryDirect account offer a streamlined redemption process. You can initiate redemption directly within the online portal by navigating to the “ManageDirect” section and selecting the option to redeem securities. Funds are typically deposited directly into a linked bank account within a few business days. It is advisable to redeem bonds once they reach their 30-year final maturity, as they cease to earn interest at that point.

Tax Considerations for Savings Bonds

The interest earned on U.S. savings bonds is subject to federal income tax. However, this interest is exempt from state and local income taxes. Bondholders typically have two methods for reporting this interest: the cash method or the accrual method. Most individual bondholders use the cash method, reporting all accumulated interest as income in the year the bond is redeemed, matures, or changes ownership.

Alternatively, some may elect the accrual method, reporting interest earned annually, though this is less common for individual investors. When a bond is redeemed, the U.S. Treasury or the financial institution will generally issue Form 1099-INT to report the total interest earned. The education savings bond program allows for a potential tax exclusion of interest if the proceeds are used for qualified higher education expenses. To qualify for this exclusion, specific requirements must be met, including income limitations and the bond being issued after 1989 to an owner at least 24 years old at the time of issue.