I Bonds do not expire, but they stop earning interest after 30 years

An I Bond will never mature or become worthless. The bond itself remains valid indefinitely — you can hold it for 40, 50, or 60 years if you want. However, the bond stops earning interest after exactly 30 years from the issue date. After that point, the principal and all accumulated interest remain yours, but no new interest accrues.

This is different from the bond "expiring" in the sense of becoming invalid. The bond is still a real asset with real value. You can still cash it in at any time after the first year. The key change is that once 30 years have passed, there is no financial reason to hold it any longer — you are no longer earning anything by keeping it in the Treasury system.

Key Takeaways

  • I Bonds earn interest for exactly 30 years from their issue date, then stop earning interest permanently.
  • You can cash in an I Bond anytime after one year, but you lose the last three months of interest if you cash it in before five years have passed.
  • After 30 years, the bond still exists and still has value, but holding it longer gains you nothing financially.
  • The Treasury does not force you to cash in an I Bond at 30 years — you decide when to redeem it.

When your I Bond stops earning interest

The 30-year period starts on the issue date printed on your bond. If you bought an I Bond on March 1, 2024, it will stop earning interest on March 1, 2054. On that exact date, the interest rate drops to zero, and no further earnings accumulate.

The Treasury does not send you a notice when this happens. You need to track the issue date yourself. If you own bonds through TreasuryDirect (the government's online system), you can log in and see the issue date for each bond. If you own paper bonds, the issue date is printed on the bond certificate itself.

What to do when your I Bond reaches 30 years

Once your I Bond stops earning interest, you should cash it in. There is no advantage to holding it any longer. You have already received all the interest the bond will ever pay. The money sits idle in the Treasury system, earning nothing.

To redeem an I Bond through TreasuryDirect, log into your account, select the bond, and request redemption. The funds arrive in your linked bank account within a few business days. If you own a paper bond, you must take it to a bank or credit union that handles bond redemptions — not all do, so call ahead. Bring a photo ID and the bond certificate itself.

The penalty for cashing in before five years

If you cash in an I Bond before it has been held for five years, you lose the last three months of interest. This penalty applies regardless of whether the bond is still earning interest or has already reached its 30-year mark. For example, if you cash in a bond at year 4.5, you forfeit all interest earned in months 10, 11, and 12 of year 4.

Once a bond has been held for five years or longer, there is no penalty. You receive all accumulated interest, whether the bond is still earning or has already stopped at year 30. This is why many people hold I Bonds for at least five years — the penalty disappears, and you keep every dollar of interest earned.

I Bonds versus other savings bonds

Series EE Bonds, another type of savings bond, have a different structure. They earn interest for 30 years just like I Bonds, but the Treasury guarantees that an EE Bond will double in value if held for 20 years. I Bonds have no doubling may provide — their value depends entirely on inflation rates during the holding period.

Series HH Bonds (no longer sold) had a 20-year earning period. If you own an old HH Bond, it stopped earning interest long ago. The same rule applies: the bond still exists and has value, but it earns nothing and should be redeemed.

Tracking your bond's age in TreasuryDirect

If you own I Bonds through TreasuryDirect, the website shows you the issue date and current value of each bond. You can calculate when the 30-year mark arrives by adding 30 years to the issue date. Set a reminder on your calendar a few months before that date so you remember to redeem the bond.

TreasuryDirect also shows you the current interest rate being paid on new I Bonds. This rate changes every six months (in May and November). Your existing bonds keep earning at the rate that was in effect when you bought them, but knowing the current rate helps you decide whether to buy more bonds or move your money elsewhere once your current bonds stop earning.

What happens if you never cash in your I Bond

If you leave an I Bond in your TreasuryDirect account after it stops earning interest, nothing bad happens — but nothing good happens either. The bond sits there, earning zero interest, indefinitely. Your money is safe, but it is not working for you. The Treasury will not seize it or force you to redeem it.

However, if you die and the bond is in your estate, your heirs will inherit it. They can cash it in at any time. If the bond has already passed the 30-year mark, they receive the principal plus all interest earned up to year 30, with no additional earnings. This is another reason to redeem bonds once they stop earning — it simplifies your estate and ensures your money is not sitting idle.

Frequently Asked Questions

Can I cash in my I Bond after 30 years without losing interest?

Yes. Once your I Bond has been held for five years or longer, you can cash it in anytime without penalty, including after the 30-year mark. You receive all interest earned through year 30, with no deduction. The only reason not to cash it in is if you want to keep the money in a government-backed account, but it will earn nothing.

What if I bought my I Bond 25 years ago and forgot about it?

Log into TreasuryDirect or contact your bank to find it. You can cash it in immediately — you have already held it longer than five years, so there is no penalty. You will receive the principal plus all interest earned through the current date. If the bond is approaching 30 years old, redeem it soon so you do not miss the final interest payments.

Do I Bonds ever become worthless?

No. An I Bond always retains its value. At minimum, you can always redeem it for the principal you invested, plus any interest earned. The worst-case scenario is that inflation is very low or negative, so your interest earnings are minimal — but the bond itself never loses value or becomes invalid.

Can I transfer my I Bond to someone else before it reaches 30 years?

No. I Bonds are non-transferable. You cannot give or sell an I Bond to another person. The only way for someone else to own it is if you die and it passes to your heirs through your estate. Until then, only you can redeem it.

What should I do with the money after I cash in my 30-year I Bond?

That depends on your financial goals. You could buy new I Bonds if inflation is still a concern, move the money to a high-yield savings account, invest it, or use it for expenses. Consider your current interest rate environment and your timeline before deciding where the money goes next.