How long before a series EE US Treasury savings bond matures? Does it earn interest after maturity?
June 30th, 2009
My children get savings bonds every year for birthdays, holidays, etc… How do you know when they have matured to face value? Do they earn interest after they mature, and if so at what rate. Thank you.
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It really depends on when the savings bonds were issued, but in general it could take anywhere from 15-20 years to mature and will continue to earn interest up until the 30 year point. Recently issued bonds earn between 3-4%. You have to hold them for 12 months before you can cash them in and if you cash them in before 5 years, you’ll lose the last 3 months of interest.
To find out how much the bonds are worth you can do 1 of 2 things.
1. Download the Savings Bond Wizard program from the treasury department. It allows you to enter your bond information and calculates interest, maturity date, etc. Good way to maintain an inventory of the bonds.
http://www.treasurydirect.gov/indiv/tools/tools_savingsbondwizard.htm
2. The other way is to use the online calculator at the treasury departments webpage. Essentially the same thing as the savings bond wizard, but online.
http://www.treasurydirect.gov/BC/SBCPrice
Check the links below for answers to this and other questions…
.1) What is original maturity?
Original maturity is the MAXIMUM amount of time it takes for a Series E/EE bond or Savings Note to reach face value. The following chart shows the original term for Series EE bonds:
Issue DateOriginal Term
1/80 – 10/8011 years
11/80 – 4/819 years
5/81 – 10/828 years
11/82 – 10/8610 years
11/86 – 2/9312 years
3/93 – 4/9518 years
5/95 – present17 years
1.2) Does my bond stop earning interest at original maturity?
No. After your bond reaches original maturity, it automatically enters one or more extension periods (usually ten years long). During extensions, bonds issued prior to May 1995 earn interest based on a guaranteed yield or a market-based yield. The applicable guaranteed yield is the one in effect at the time the bond enters the extension. Bonds issued after April 1995 have no guaranteed minimum yield. They will earn interest in accordance with the terms and conditions in effect at the time they enter the extension.
1.3) When does my bond stop earning interest?
Bonds stop earning interest at final maturity. The following table shows final maturity periods for Savings Bonds and Savings Notes:
SeriesIssue Date Final Maturity
E5/41 to 11/6540 years
E12/65 to 6/8030 years
EEAll issues30 years
H6/52 to 1/5729 years, 8 months
H2/57 to 12/7930 years
HHAll issues20 years
Savings NotesAll issues30 years