Patriot Bonds mature in 20 years from the issue date

A Patriot Bond is a Series EE savings bond issued after December 2001 with a 20-year maturity period. The bond reaches its full face value at the 20-year mark — meaning if you buy a $50 Patriot Bond, it will be worth $50 when it matures, regardless of the interest rate at purchase. You can hold the bond longer than 20 years and continue earning interest, but the maturity date is when the U.S. Treasury guarantees the principal-plus-interest value.

The exact maturity date depends on when you purchase the bond. If you buy a Patriot Bond in March 2024, it matures in March 2044. The Treasury prints the issue date on the bond itself, so you can always look at your bond or your TreasuryDirect account to find the precise maturity date.

Key Takeaways

  • Patriot Bonds have a fixed 20-year maturity period from the purchase date, after which they reach their may provide face value.
  • You can cash in a Patriot Bond before maturity, but you will forfeit the last three months of interest if you redeem it before five years have passed.
  • After 20 years, the bond stops earning interest, so holding it longer than maturity provides no additional return.
  • The issue date printed on your bond or shown in TreasuryDirect tells you exactly when your bond will mature.

What happens when a Patriot Bond reaches maturity

When your Patriot Bond reaches its 20-year maturity date, it stops earning interest. The bond will be worth its full face value — the amount you paid for it — plus all the interest accumulated over those 20 years. At that point, you have the choice to cash it in or leave it in your account.

If you do not redeem the bond at maturity, it will continue to exist in your TreasuryDirect account, but it will not earn any additional interest. The Treasury does not automatically cash it or move it anywhere. You must actively redeem it through TreasuryDirect or take it to a bank if you hold a paper bond.

Early redemption and the interest penalty

You can redeem a Patriot Bond before the 20-year maturity date, but there is a cost. If you cash in the bond before it has been held for five years, you lose the last three months of interest. This penalty applies whether you redeem at year one or year four.

After five years, you can redeem without the three-month interest penalty. So if you hold a Patriot Bond for five years and one day, you receive all interest earned through that date. This makes the five-year mark an important threshold if you think you might need the money early.

How interest accrues over the 20-year period

Patriot Bonds earn interest monthly, but the interest is not paid out to you — it is added to the bond's value. This is called compounding. The interest rate is set at purchase and remains the same for the life of the bond. The Treasury announces new rates every six months (in May and November), so two bonds bought in different months will have different rates.

The exact rate you receive depends on when you purchase. The Treasury guarantees that your bond will reach at least face value in 20 years, even if interest rates are very low. This may provide is what makes Patriot Bonds different from some other savings vehicles — you cannot lose money, but you also cannot earn more than the rate set at purchase.

Tracking your bond's maturity date in TreasuryDirect

If you own Patriot Bonds through TreasuryDirect (the Treasury's online platform), you can see the maturity date by logging into your account and viewing your holdings. The account shows the issue date, the current value, and the maturity date for each bond. You do not have to calculate it yourself.

For paper Patriot Bonds, the issue date is printed on the bond certificate itself. You can add 20 years to that date to find the maturity date. If you have lost track of when you bought your bonds, you can contact the Treasury's Savings Bonds Division or search the Treasury Hunt database online to locate bonds registered in your name.

What to do with your bond after maturity

Once your Patriot Bond matures, you have three options: redeem it for cash, leave it in your TreasuryDirect account earning no interest, or reinvest the proceeds into new bonds. Most people redeem at or shortly after maturity because holding a non-earning bond serves no purpose.

If you want to continue building savings through bonds, you can use the matured bond's value to purchase new Series EE or Series I bonds. Series I bonds adjust their rate every six months based on inflation, which may offer better returns than a new Series EE bond if inflation is high. Comparing the current rates at the time of maturity will help you decide whether to reinvest.

Frequently Asked Questions

Can I cash in my Patriot Bond before 20 years?

Yes, you can redeem a Patriot Bond at any time after you own it. However, if you redeem before five years have passed, you lose the last three months of interest. After five years, you can redeem without penalty and receive all interest earned to date.

What if I need the money before maturity but do not want to lose interest?

Wait until your bond has been held for at least five years. Once you reach the five-year mark, you can redeem without forfeiting any interest. If you need the money before five years, you will have to accept the three-month interest penalty.

Do Patriot Bonds earn interest after they mature?

No. A Patriot Bond stops earning interest exactly 20 years after the issue date. If you hold it longer, the value does not increase. You should redeem it at or shortly after maturity to put the money to use elsewhere.

How do I know the exact maturity date of my bond?

Log into your TreasuryDirect account to see the maturity date listed for each bond. For paper bonds, add 20 years to the issue date printed on the certificate. You can also contact the Treasury's Savings Bonds Division if you need help locating your bonds.

What happens if I do not redeem my Patriot Bond at maturity?

The bond will remain in your account but will not earn any additional interest. It will stay at its matured value indefinitely until you choose to redeem it. There is no deadline to cash it in, but there is no benefit to waiting.