EE bonds reach their face value in 20 years

An EE savings bond takes 20 years to reach its stated face value. If you buy a $100 EE bond, the Treasury guarantees it will be worth at least $100 after 20 years, even if interest rates have been low the whole time. This is the maturity date that matters most to most people—the point where your bond has done what you bought it to do.

The bond does not stop earning interest after 20 years. It keeps earning for a total of 30 years from the issue date. But the 20-year mark is when the Treasury's may provide kicks in, and when most people think of the bond as "mature."

Key Takeaways

  • EE bonds reach their face value (the amount printed on them) after exactly 20 years from the issue date.
  • Interest accrues monthly but is only paid out when you cash the bond, so you do not see money until you redeem it.
  • You can cash an EE bond anytime after one year, but you lose the last three months of interest if you cash it before five years.
  • The bond continues earning interest for 30 years total, though the rate of growth slows after the first 20 years.

What "maturity" means for an EE bond

Maturity is the date when the Treasury guarantees your bond will be worth its face value. For EE bonds, that date is 20 years from when you bought it. The face value is the amount printed on the bond—a $100 bond will be worth at least $100 on its 20-year anniversary.

This may provide matters because EE bonds earn variable interest. The rate changes every six months based on Treasury security rates. If you bought your bond during a period of very low interest, the Treasury makes up the difference so you still hit that 20-year target. If rates have been higher, your bond will be worth more than face value.

The maturity date is not a deadline. You do not have to cash the bond at 20 years. It will keep earning interest until year 30, though the growth slows considerably after year 20.

How interest accrues before you cash the bond

EE bonds earn interest every month, but you do not receive that interest as a payment. Instead, it stays in the bond and compounds—meaning you earn interest on your interest. The bond's value grows each month, but you only see the money when you cash it.

The Treasury adds the interest to your bond's value on the first day of each month. You can check your bond's current value anytime through TreasuryDirect, the official government website where you hold the bond. The value shown there is what you would receive if you cashed it that day.

The penalty for cashing before five years

You can cash an EE bond anytime after you have owned it for one year. But if you cash it before five years have passed, you lose the last three months of interest. This is called the early redemption penalty.

For example, if you bought a bond on January 1 and cashed it on December 1 of year four, you would lose the interest that accrued in September, October, and November. You would receive the value as of June 1 instead. After five years, there is no penalty—you get all the interest that has accrued, no matter when you cash it.

The difference between 20 years and 30 years

At year 20, your EE bond reaches its may provide face value and is considered mature. But the bond does not stop earning. It continues to earn interest for another 10 years, until year 30, when the bond stops earning altogether.

The interest rate does not change at year 20—the same rate that applied in years 19 and 20 continues to apply. But the growth slows because the rate itself tends to be lower in the later years of a bond's life. Many people cash their bonds around year 20 because that is when the Treasury's may provide is fulfilled, but there is no financial reason to do so if you do not need the money.

After 30 years, the bond stops earning interest entirely. At that point, cashing it makes sense if you have not already, because holding it longer gains you nothing.

How to track your bond's maturity date

Your EE bond's maturity date is always 20 years from the issue date printed on the bond. If your bond was issued on March 15, 2024, it will reach face value on March 15, 2044.

You can see your bond's current value and issue date by logging into TreasuryDirect with your Social Security number and password. The site shows you every bond you own, when it was issued, what it is worth right now, and when it will stop earning interest (year 30). You do not need to do anything to "activate" the maturity—it happens automatically.

What happens if you need the money before maturity

You can cash your EE bond anytime after one year of ownership. If you cash it before five years, you lose the last three months of interest. If you cash it between five years and 20 years, you get all the interest that has accrued—you just get less total money because the bond has not reached its may provide face value yet.

For example, a $100 EE bond cashed at year 10 might be worth $150 (depending on interest rates during those 10 years). You would receive $150, not $100. The bond is simply not may provide to be worth $100 until year 20.

If you need money before your bond matures, cashing it after five years is usually the best option because you avoid the three-month interest penalty and you get whatever the bond has earned so far.

Frequently Asked Questions

Can I cash my EE bond before it matures at 20 years?

Yes. You can cash an EE bond anytime after one year of ownership. If you cash it before five years, you lose the last three months of interest. After five years, you get all accrued interest with no penalty, but the bond may be worth less than its face value if you cash it before year 20.

What if I do not cash my bond at year 20?

The bond keeps earning interest until year 30. There is no penalty for holding it past maturity. Many people hold bonds past year 20 if they do not need the money, though the growth rate slows after the 20-year mark.

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

Add 20 years to the issue date printed on your bond. You can also log into TreasuryDirect to see the issue date and current value of every bond you own. The site does not require you to do anything—maturity happens automatically.

What is the difference between maturity and final expiration?

Maturity is year 20, when the bond reaches its face value and the Treasury's may provide is fulfilled. Final expiration is year 30, when the bond stops earning interest entirely. You can cash the bond anytime between year 1 and year 30.

If my bond is worth more than face value at year 20, should I cash it?

Not necessarily. The bond will keep earning interest until year 30. Cash it when you need the money, not on a specific date. If you do not need it, holding it longer costs you nothing and gains you whatever interest accrues in years 21 through 30.