EE bonds mature in 20 years, but you can cash them before that

An EE bond reaches its final maturity date 20 years after you buy it. At that point, the Treasury stops adding interest, and the bond's value is locked in. You do not have to hold it until then — you can cash it in at any time after you have owned it for one year. If you cash it in before five years have passed, you lose the last three months of interest as a penalty.

The actual dollar value at maturity depends on when you bought the bond and what interest rate it earned. EE bonds bought before May 2003 earn a fixed rate set when you purchased them. EE bonds bought from May 2003 onward earn a variable rate that changes every six months, based on Treasury market rates. The Treasury guarantees that an EE bond will at least double in value over 20 years, even if interest rates stay very low.

Key Takeaways

  • EE bonds stop earning interest 20 years after purchase, so holding them longer than that gains you nothing.
  • You can cash an EE bond after one year, but you forfeit the last three months of interest if you do so before five years have passed.
  • The interest rate on EE bonds bought from May 2003 onward changes every six months and is announced by the Treasury.
  • The Treasury guarantees EE bonds will at least double in value over the full 20-year period, regardless of how low interest rates fall.

What happens after 20 years

Once an EE bond reaches its 20-year maturity date, it stops earning interest entirely. The bond's value becomes fixed at whatever it had grown to by that date. If you leave the bond in your Treasury Direct account after maturity, it sits there earning nothing.

The Treasury will not automatically cash the bond for you. You must log into your Treasury Direct account and request the redemption yourself. There is no deadline for doing this — you can cash it in years later if you want — but every month you wait after maturity is a month the money is earning zero percent.

The difference between holding five years and holding 20

The five-year mark matters because of the interest penalty. If you redeem an EE bond before it has been five years old, you lose three months of interest. After five years, there is no penalty — you can cash it in whenever you want and receive the full value it has earned up to that point.

Between year five and year 20, the bond continues to earn interest at its stated rate. The longer you hold it, the more interest accumulates. But once you reach year 20, that earning stops. A bond held for 25 years earns the same total interest as one held for exactly 20 years.

How to find out what your bond is worth now

The Treasury provides a free tool called the Savings Bond Calculator on the TreasuryDirect.gov website. You enter the bond series (EE), the issue date, and the denomination (the amount you paid for it), and the calculator shows you the current value and the interest earned so far.

If you own paper EE bonds, you can also look up their value using the same calculator. You will need to know the series letter, the issue date, and the denomination printed on the bond itself. The calculator updates daily to reflect current interest rates for variable-rate bonds.

When to cash in an EE bond before maturity

If you need the money before 20 years have passed, you can redeem the bond as long as you have owned it for at least one year. The main cost is the three-month interest penalty if you cash it in before five years. Weigh that penalty against your need for the money and what you would earn if you left it invested elsewhere.

Some people cash in EE bonds early to cover unexpected expenses or to move the money into a higher-yielding investment. Others hold them specifically because of the 20-year doubling may provide — they want the certainty that their money will at least double, even if interest rates drop. There is no single right answer; it depends on your situation and what you plan to do with the money.

Extending a bond past maturity is not possible

Unlike some other savings bonds, EE bonds do not have an extension period. You cannot renew an EE bond or ask the Treasury to keep it earning interest past the 20-year mark. Once it matures, your only option is to cash it in or let it sit idle in your account.

If you want to keep money invested in Treasury securities after an EE bond matures, you would need to buy a new bond or purchase Treasury bills, notes, or bonds directly through TreasuryDirect or a bank.

Frequently Asked Questions

Can I cash in an EE bond after 10 years without losing interest?

No. The three-month interest penalty applies to any redemption before five years. After five years, you can cash it in without penalty, but you will still be cashing it in early — it will not have earned the full 20 years of interest it would have earned if you held it to maturity.

What if I lose track of when I bought my EE bond?

If you own the physical bond, the issue date is printed on it. If you own it through Treasury Direct, log into your account and check the purchase date listed there. The Savings Bond Calculator needs the exact issue date to calculate the current value.

Do I have to report the interest when the bond matures?

Yes. You owe federal income tax on the interest earned by an EE bond. You can report it in the year you cash the bond, or you can report it each year as it accrues — ask your tax preparer which method makes sense for your situation. The Treasury does not send you a tax form automatically.

Can I transfer an EE bond to someone else before it matures?

No. EE bonds are registered to the owner and cannot be transferred or gifted. If you want to give someone money, you would need to cash the bond and give them the proceeds, which triggers the interest penalty if the bond is less than five years old.