When Does a Savings Bond Mature & What Happens Next?

Savings bonds represent a secure, low-risk investment product issued by the U.S. Department of the Treasury. These bonds offer individuals a safe way to save money while earning interest over time. A fundamental aspect of owning savings bonds involves understanding their maturity, which dictates when they cease earning interest and become fully redeemable.

Understanding Savings Bond Maturity

Savings bond maturity refers to the point at which the bond stops accruing interest. It’s important to distinguish between “original maturity” and “final maturity.” While original maturity might indicate when a bond is guaranteed to reach a certain value, such as doubling its face value, final maturity is the date when the bond completely stops earning interest. Holding a bond past its final maturity provides no additional financial benefit.

For Series EE and Series I savings bonds, the final maturity period is 30 years from their issue date. After three decades, these bonds will no longer generate interest. Older series like H and HH bonds are no longer issued, but also typically had a 30-year maturity period.

Identifying Your Bond’s Maturity Date

Determining your savings bond’s maturity date is simple, whether held electronically or in paper form. For electronic bonds, log into your TreasuryDirect account. There, you can view detailed information for each bond, including its current value and final maturity date.

For paper savings bonds, locate the issue date printed on the bond certificate. Then, use the TreasuryDirect website’s Savings Bond Calculator. This tool allows you to input the bond’s series, denomination, and issue date to determine its current value, interest accrual, and final maturity date. If you’ve lost paper bonds, the Treasury Hunt tool on the TreasuryDirect website can help search for unredeemed bonds using identifying information like a Social Security number.

Actions at Maturity

Once a savings bond reaches its final maturity date, or if you redeem it earlier, understand the redemption procedures and tax considerations. For electronic bonds in a TreasuryDirect account, redemption is managed online by selecting “Redeem securities.” Funds are deposited directly into your linked bank account, typically within two business days. Electronic bonds can be partially redeemed in amounts of $25 or more, provided at least $25 remains on the bond.

Paper savings bonds can be redeemed at financial institutions like banks or credit unions, or by mailing them directly to TreasuryDirect. When redeeming at a financial institution, present the bond along with valid identification. For redemptions exceeding $1,000, a certified signature may be required. Paper bonds must be redeemed for their full value, unlike electronic bonds which allow for partial redemption.

Interest earned on savings bonds is subject to federal income tax, but exempt from state and local income taxes. Most bondholders defer reporting this interest until the bond is redeemed or reaches final maturity, whichever occurs first. Upon redemption, you will receive a Form 1099-INT, reporting the total interest earned over the bond’s lifetime. You can also elect to report the interest annually as it accrues. Additionally, interest from Series EE and I bonds used for qualified higher education expenses may be excluded from federal income tax, subject to income limitations and requirements.