EE bonds reach their full face value after 20 years

An EE bond purchased today will reach its stated face value in exactly 20 years from the issue date. If you buy a $100 EE bond, the U.S. Treasury guarantees it will be worth at least $200 after 20 years—meaning your money doubles. The bond continues to earn interest after that point, but the 20-year mark is when the Treasury's core promise is fulfilled.

The bond does not stop being valuable after 20 years. It keeps earning interest for up to 30 years total from the issue date. However, most financial advisors recommend cashing out around the 20-year mark because the interest rate after year 20 is typically much lower than what you earned during the first two decades.

Key Takeaways

  • EE bonds double in value over 20 years, may provide by the U.S. Treasury, regardless of market conditions.
  • You can cash in an EE bond anytime after one year, but you lose the last three months of interest if you cash it before five years.
  • After 20 years, your bond stops earning the higher interest rate and switches to a lower rate for years 21 through 30.
  • The final maturity date is 30 years from purchase, at which point the bond stops earning interest entirely.

What happens during the first five years

You can redeem an EE bond after holding it for just one year, but there is a penalty for early withdrawal. If you cash it in before five years have passed, you forfeit the last three months of interest. This means if you sell at year two, you only receive interest through year 1 and nine months.

The penalty exists to discourage short-term trading and to protect the Treasury's long-term funding model. After five years, you can cash the bond without losing any interest, though you still receive less than the full face value if the bond has not yet reached its 20-year mark.

Interest rates change every six months

The interest rate on EE bonds is not fixed for the entire 20 years. The Treasury announces a new rate every May and November, and that rate applies to all bonds issued in that month. A bond purchased in May 2024 earns one rate, while a bond purchased in November 2024 earns a different rate.

The rate you receive at purchase is locked in for the first six months you own the bond. After that, your bond earns the new rate announced in the next May or November, whether that rate is higher or lower. The Treasury guarantees the bond will still reach face value in 20 years, but the path to get there depends on which rates apply during your holding period.

The difference between maturity and final maturity

Maturity at 20 years means the bond has reached its may provide face value. Final maturity at 30 years means the bond stops earning interest altogether. Between year 20 and year 30, your bond is still earning money, but at a much lower rate than it did during the first 20 years.

If you hold the bond past 30 years, it earns nothing. The Treasury stops paying interest, and the bond becomes worthless from an earnings perspective. Most owners cash out well before this point—either at the 20-year mark when the main may provide is fulfilled, or sometime between years 20 and 30 if they need the money.

How to track your bond's maturity date

The issue date is printed on your bond or listed in your TreasuryDirect account if you own digital bonds. Add 20 years to that date to find when your bond reaches face value. For example, a bond issued on June 15, 2024, will reach its may provide value on June 15, 2044.

If you own paper bonds, you can also check the Treasury's website or call 1-800-4US-BONDS to verify the current value and maturity date. Digital bonds held in TreasuryDirect show real-time value and all relevant dates in your account dashboard. Knowing the exact date helps you plan whether to hold for the full 20 years or cash out earlier.

What to do when your bond reaches 20 years

You are not required to cash in your bond at the 20-year mark. Some people hold longer if they do not need the money and want to keep earning, even at the lower post-20-year rate. Others cash out immediately because the interest earned after year 20 is minimal compared to what they earned during the first two decades.

If you decide to hold past 20 years, your bond continues to earn interest until year 30. If you decide to cash out, you can do so through TreasuryDirect (for digital bonds) or at most banks and credit unions (for paper bonds). There is no penalty for cashing out after five years, so the decision is purely about whether the remaining interest is worth keeping your money tied up.

Frequently Asked Questions

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

Yes. You can redeem an EE bond anytime after one year of ownership. If you cash it in before five years, you lose the last three months of interest. After five years, you can cash it without penalty, though you may receive less than the face value if the bond has not yet reached its 20-year mark.

What is the penalty for cashing in an EE bond early?

The only penalty is losing the last three months of interest, and only if you cash in before five years. This penalty applies once per bond. After five years, there is no penalty—you simply receive whatever the bond is worth at that moment.

Do EE bonds earn interest after 20 years?

Yes, but at a much lower rate. Your bond continues earning interest from year 20 through year 30. After year 30, it stops earning interest entirely and becomes worthless from an earnings standpoint.

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

Add 20 years to the issue date printed on your bond or shown in TreasuryDirect. For digital bonds, your account shows the current value and all key dates. For paper bonds, you can verify the date by calling 1-800-4US-BONDS or checking the Treasury website.

What happens if I hold an EE bond past 30 years?

The bond stops earning interest at year 30 and has no further value. It is best to cash it in by that point. Holding past 30 years means your money is sitting idle and earning nothing.