Yes, savings bonds stop earning interest, but the timing depends on the bond type

Series EE bonds stop earning interest 30 years after you buy them. Series I bonds stop earning interest 30 years after purchase as well. Once a bond reaches its final maturity date, the U.S. Treasury stops adding interest to your account, even if you keep the bond. At that point, your bond holds only its final value—nothing more accrues.

The catch is that most people cash in their bonds long before maturity. Series EE bonds reach their original maturity at 20 years, and Series I bonds at 20 years as well. If you hold past the original maturity date, the bond keeps earning interest at the current rate until it hits final maturity at 30 years. But once you hit 30 years, that's it—the interest stops completely.

If you hold a bond past final maturity and don't cash it in, your money just sits there earning nothing. The Treasury won't automatically send it to you, and it won't grow. You have to take action to get your money out.

Key Takeaways

  • Series EE and Series I bonds both stop earning interest permanently at 30 years from the purchase date.
  • Bonds continue to earn interest between their original maturity (20 years) and final maturity (30 years), but only if you hold them.
  • Once a bond reaches final maturity, your money remains in the bond at its final value with zero additional interest, and you must cash it in to access the funds.
  • Holding a bond past final maturity costs you nothing directly, but it also means your money earns nothing and sits in an account you're not using.

How the 20-year and 30-year timeline works

When you buy a Series EE or Series I bond, the Treasury assigns it two maturity dates. The original maturity date is 20 years out. At that point, your bond has earned all the interest it was promised when you bought it, and you can cash it in without penalty.

But you don't have to cash it in. If you hold it past 20 years, it enters what's called the extended maturity period. During this time—from year 20 to year 30—the bond keeps earning interest at whatever rate the Treasury is currently paying for that bond type. This is a real benefit if rates are decent, because you're getting paid to wait.

At year 30, the final maturity date arrives. The interest stops. Your bond is now worth whatever it was worth on that 30-year anniversary, and that's its permanent value. If you don't cash it in, it just sits there.

What happens if you forget to cash in a mature bond

The Treasury does not send you a check when your bond matures. There is no automatic payment, no reminder, and no deadline to cash it in. Your bond simply stops earning interest and waits in your account until you decide to redeem it.

This is actually a common situation. People buy bonds, forget about them, and years later discover they've been holding a mature bond earning zero percent. The money is still yours and still safe—the Treasury isn't going anywhere—but it's earning nothing while it sits there.

To get your money out, you need to redeem the bond through TreasuryDirect (the online platform where most people hold bonds) or through a bank or broker if you bought paper bonds. The process is straightforward, but you have to initiate it yourself.

The difference between original and final maturity

Original maturity is when your bond has fulfilled its initial promise. For Series EE bonds, the Treasury guarantees that your bond will be worth at least double what you paid for it by the 20-year mark. For Series I bonds, there's no doubling may provide, but the bond has earned interest for 20 years at the rates that were in effect during your holding period.

Final maturity is when the bond stops being an investment and becomes just a place where your money sits. Between original and final maturity, you have a choice: cash in and move your money elsewhere, or keep holding and earn whatever the current rate is. After final maturity, there is no choice—the earning stops, and you're just holding cash in bond form.

Many people don't realize there's a difference. They think "maturity" means the bond stops earning, period. In reality, maturity at 20 years just means you can cash it in without penalty. The bond keeps working for another 10 years if you let it.

Why you might want to cash in before final maturity

Once your bond reaches original maturity at 20 years, you can move your money to something else—a high-yield savings account, a CD, or another investment. If interest rates have risen since you bought the bond, you might earn more elsewhere. If rates have fallen, your bond might still be your best option.

The extended maturity period (years 20 to 30) is useful only if the current rate on that bond type is competitive. You can check the current rates on the TreasuryDirect website. If the rate is low and you can earn more in a savings account, there's no reason to wait.

Cashing in early—before year 20—does carry a penalty: you lose the last three months of interest. This is why most people wait until at least the 20-year mark. But after that, there's no penalty for cashing in whenever you want.

What to do with bonds that have stopped earning

If you're holding a bond past final maturity, the first step is to log into TreasuryDirect and check the maturity date. You can see exactly when your bond stopped earning interest. If it's been years, you're losing nothing by cashing it in now—the interest stopped long ago.

Redeeming a bond through TreasuryDirect takes a few days. The money goes into the bank account you have linked to your TreasuryDirect account. Once you have the cash, you can move it to a savings account, a CD, or wherever you want it to work for you.

If you bought paper bonds (physical certificates), the process is different. You'll need to take them to a bank or broker to redeem them. Bring your ID and the bonds themselves. The bank will verify the bonds and process the redemption, usually within a few business days.

Frequently Asked Questions

Can I cash in a savings bond before it reaches final maturity?

Yes. You can cash in a Series EE or Series I bond anytime after you've held it for one year. If you cash it in before five years, you lose the last three months of interest. After five years, there's no penalty. You can hold it all the way to 30 years if you want, but there's no benefit to holding past final maturity.

What's the difference between a bond that's matured and one that's still earning?

A matured bond has reached its final maturity date (30 years) and no longer earns any interest. A bond that's still earning is between purchase and 30 years old. Between years 20 and 30, a bond is earning interest even though it's past original maturity. After 30 years, it earns nothing.

If I hold a bond past 30 years, will it ever earn interest again?

No. Once a bond reaches final maturity at 30 years, it stops earning interest permanently. The Treasury does not restart interest payments. Your only option is to redeem the bond and move the money elsewhere.

Do I lose money if my bond has stopped earning interest?

No. Your principal and all the interest it earned up to final maturity are still yours. You don't lose anything by holding a mature bond—you just stop earning. The money is safe, but it's not growing anymore.

How do I know if my bond has reached final maturity?

Log into your TreasuryDirect account and look at the maturity date listed for each bond. If today's date is 30 years after the purchase date, the bond has reached final maturity and is no longer earning interest. You can also call TreasuryDirect customer service at 844-284-2676 to confirm.