Paper ee bonds, last sold in 2011, were sold at half of face value more on rates and terms. Some older ee bonds that have not reached final maturity yet had a guaranteed rate as high as 8 percent for the original maturity period, and still may pay a higher semiannual rate than current low yields. Treasury department gives you a guarantee that your ee bonds will reach maturity in 20 years. What happens if you cash in a savings bond before the. For all ee bonds issued before may 1995, the guaranteed rate for extension. Most people defer reporting the interest, putting it off until they are filing a federal income tax return for the year in which they receive what the bond. Both electronic and paper versions of series i savings bonds are purchased at face value and earn interest until they are redeemed or reach maturity. Individual before may 1995 ee bond rates and terms. Series denom issue date next accrual final maturity issue price interest interest rate value note. 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. There is also another type of savings bond called series i, which you may purchase with your internal revenue service income tax refund. Maturity of a ee bond financial issues with dan celia.
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. In general, you must report the interest in income in the taxable year in which you redeemed the bonds to the. Discover how long it takes for series ee savings bonds to mature, and learn how. Those were issued from 1941 to 1980, and all of them have stopped earning interest. I own many ee bonds that have reached their final maturity.
What you must know about taxation of ee series bonds ed. Electronic series ee savings bonds, purchased via treasurydirect, are sold at face value. How long will it take my ee savings bonds to mature. Treasury department has extended the original maturity of some. It doesnt have to mature before you can ask the government for your money back plus interest earned. Even after a bond reaches its face amount at the 20 year point, interest is still credited to the value. Find the issue date on your paper bonds, or check the date of issue and final maturity of electronic bonds in. This must be done even if you or the original bondholder chose to have the interest on the bond accumulate taxdeferred until the final maturity. How to calculate the value of your paper savings bonds. What happens when bonds are mature but not being cashed in the maturity date on a bond tells you when the both is worth at least the principal. Calculate the value of your paper savings bond s tools. According to dixon, both series i and series ee bonds are redeemable in the same way the main difference between series i bonds and series ee bonds. Features include current interest rate, next accrual date, final maturity. I cashed some series e, series ee, and series i savings bonds.
Individual series eee savings bonds tax considerations. The original maturity terms of savings bonds are sometimes extended, but once bonds reach final maturity, they no longer earn interest. Savings bonds calculator series ee savings bonds faq bankrate. The time it takes a savings bond to reach face value depends on the series of bond and the value at which it was sold. Series ee savings bonds issue dated on or after may 1, 2005 will earn a fixed rate of interest for 20 years, at which time the bond should have reached its face value. Features include current interest rate, next accrual date, final maturity date, and yeartodate interest earned. Series e savings bonds were first sold in may 1941 and were discontinued at the end of june 1980. The executor of the estate has chosen for the estate not to pay taxes on the interst but instead for it to pass to the heirs. That means that not only have they stopped earning interest, but all of the accrued and as yet. Since may 2005, ee bonds have been issued earning a fixed rate of interest, so a final value. It is always 30 years from the issue date, and it is at this time that interest ceases. Irs publication 550 states that once that savings bond passes its final maturity date, the interest accumulated over the life of the bond.
Penalty for a savings bond past final maturity budgeting money. Original issue discount series e and ee bonds duration. How long does it take for series ee bonds to mature. These bonds were purchased at half their face value. Savings bonds older than 30 years should be redeemed as they are no longer earning interest. That means that not only have they stopped earning interest, but all of the accrued and as yet untaxed interest is taxable in 2019. Theres no point in holding on to them and giving the government an interestfree loan. How to estimate the final maturity value on savings bonds. Savings bonds calculator series ee savings bonds faq. The series ee bond you own from 1983 will reach its final extended maturity in june 20. Penalty for a savings bond past final maturity budgeting. How long will it take for a savings bond to reach its face. Series ee bonds issued in january 1989 reached final maturity after 30 years, in january 2019.
Treasury bond redemption tables, all series e bonds have reached final maturity. However, some reach maturity sooner depending on their builtin interest rate. How to avoid taxes when cashing in bonds usa today. You must hold series i bonds for at least 12 months before redeeming them. Looks like i will be inherting some e and ee savings bonds.
The oldest of your bonds still has another 10 years until final. 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. While these bonds may not always provide much in the way of growth the current interest rate for series ee bonds is a paltry 0. The series ee bond is a nonmarketable, interestbearing u. For all ee bonds issued before may 1995, the guaranteed rate for extension periods entered on or after march 1993 has been 4 percent. How to calculate a savings bond maturity date pocketsense. Interest rates and terms for series ee savings bonds. The projected value of one of these bonds will be more of a ballpark figure. How long does it take for series ee savings bonds to reach face value the united states treasury department used to sell series ee bonds at half the face value with the promise that the bond. Series ee bonds mature after 30 years, meaning they can earn interest for that period of.
The final maturity for all ee bonds is 30 years, and since none are older than july 1980, you have a few more years before they stop earning interest. Of course, doing this comes with a number of qualifying rules. Series i savings bonds may be purchased in either electronic or paper form. How much is my savings bond worth if it was purchased in 1991 for 100 ee bond calculator current values of ee savings bonds online savings bonds. Ee bonds earn interest until final maturity, which is 30 years from the date of issue. If its a series e or series h bond, then its matured, as all of those bonds are no longer being issued and all the existing ones have already hit their maturity date. At final maturity, the bond stops earning interest. Before you move to cash in your bonds, check the issue date. Once bonds reach final maturity, owners should redeem them. To cash in series ee savings bonds, youll need to wait at least 1 year after you purchased the bond or received it as a gift.
Do savings bonds continue to earn interest after maturity. Ee bonds were available in paper form through banks until the end of 2011. All of the original series e bonds have already reached final maturity, even though they were extended for 40 years, and series ee bonds issued before june, 1984 have reached final maturity. The only way to buy ee bonds is to buy them in electronic form in treasurydirect. The answer, 60, reveals the total number of years necessary for the bond. A savings bond typically stops earning interest when it hits the 30year point. Before the advent of series ee bonds, your grandparents might have bought you a series e savings bond. All series ee bonds reach final maturity 30 years from issue.
Us treasury savings bond calculator first state bank. Savings bonds have long been a popular gift for children as a means of helping college savings. The calculator will price series ee, series e, and series i savings bonds, and savings notes. The term maturity simply refers to the date at which the bond stops earning interest. How long will it take for a savings bond to reach its face value. All ee savings bonds post their final maturity interest on the first day of the final maturity. When an i or e savings bond matures is it worth more than. Savings bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity. Series ee savings bonds are lowrisk savings products that pay interest until they reach 30 years or you cash them, whichever comes first. Series ee, series e, and series i savings bonds, and savings notes. The rates and terms for an ee bond depend largely on when the bond was issued. Series ee bonds are a type of zerocoupon bond, which means you never receive interest income. Among savings bonds that have fully matured and stopped earning interest are entire series of older bonds.
As a treasurydirect account holder, you can purchase, manage, and redeem ee bonds. The length of time savings bonds earn interest depends on the bond series and. However, you might want to wait 5 years to cash in your bond since. A series ee savings bond continues to earn interest for up to 30 years if it is not redeemed. Not cashing savings bonds to avoid taxes savings the. How to report us savings bond series ee interest, without 1099int form. As far as the treasury is concerned, final maturity means final value. Series e savings bonds issued in 1975 stopped earning interest in 2005 at the bond s final maturity. This calculator will price series ee, e, and i bonds and can show you. How to cash in series ee savings bonds depositaccounts.
The interest rate is fixed, the compounding periods are known semiannually for ee bonds, and the term is known as. Series ee savings bonds earn interest for 30 years. If you hold these bonds after the date of final maturity, it opens the door to a possible tax penalty andor fine for you. Since may 2005, ee bonds have been issued earning a fixed rate of interest, so a final value can be fairly accurately determined with a couple of easy calculations. The exception is when a period of a different length is needed to complete the ee bonds total interestearning life span of 30 years. The traditional series ee savings bonds earn a fixed rate of interest until a bond is redeemed or reaches final maturity. Find out what your savings bonds are worth with our online calculator. The final maturity of ee bonds occurs after the extended maturity has concluded.
The oldest of your bonds still has another 10 years until final maturity. The irs lets you avoid paying taxes on interest earned by series ee and series i savings bonds when you redeem them if you use the money toward qualified higher education costs for yourself, your spouse, or any of your dependents. What happens when bonds are mature but not being cashed in. Older series ee bonds earn variable rates, which can change twice a year. They were purchased between 198385 and are registered mostly to my wife and me, with some also to me and one of my. Investors often lose track of this date because the u. Is it possible to determine the final value of a u. The drastically different maturity dates for these bonds result from the differing. If they are redeemed before five years, the last three months worth of interest is.