EE bonds reach final maturity 30 years after you buy them

An EE bond stops earning interest exactly 30 years from the issue date printed on the bond. That date is when the bond has reached what the Treasury calls final maturity. After that point, the bond will not grow in value no matter how long you hold it.

The issue date is the first day of the month you purchased the bond. If you bought an EE bond on March 15, 2024, the issue date is March 1, 2024, and the bond reaches final maturity on March 1, 2054. You can check your bond's issue date by logging into TreasuryDirect.gov with your account.

Final maturity is different from the bond's current value. Your bond may be worth less than face value for the first 20 years, and it will reach face value (the amount you paid) sometime between year 17 and year 20. After that, it continues to earn interest until year 30.

Key Takeaways

  • EE bonds stop earning interest at exactly 30 years from the issue date, which is the first day of the month you purchased the bond.
  • You can hold the bond beyond 30 years, but it will not gain any additional value once final maturity arrives.
  • The Treasury will not automatically cash the bond when it reaches final maturity—you must redeem it yourself through TreasuryDirect or a bank.
  • If you do not redeem the bond after final maturity, the money sits in the bond earning nothing, so cashing it out becomes important for your savings.

What happens to your money after 30 years

Once an EE bond reaches final maturity at year 30, the principal and all accumulated interest freeze in place. The bond will not lose value, but it will not gain any either. If your bond is worth $5,000 on the maturity date, it will still be worth $5,000 ten years later.

The Treasury does not automatically send you the money or move it anywhere. The bond simply stops working. You own the full value, but it sits idle unless you take action to redeem it.

How to redeem a bond after it matures

You redeem a mature EE bond through the same place you hold it. If the bond is in your TreasuryDirect account, log in, select the bond, and request redemption. The money typically arrives in your linked bank account within two business days.

If you hold a paper EE bond (the physical certificate), take it to a bank that redeems savings bonds. Most banks will cash it for you, though some may charge a small fee or require you to have an account there. Call ahead to confirm the bank accepts paper bonds and ask about any fees.

You will receive a 1099-INT form from the Treasury for the interest earned that year if the bond was redeemed in that tax year. Keep this form for your tax records.

Why you should not wait to redeem after maturity

Holding a mature bond costs you nothing directly, but it means your money is earning zero percent interest. If you have $5,000 in a mature EE bond and you could put that money in a high-yield savings account earning 4 percent annually, you are giving up $200 per year by leaving it in the bond.

Mature bonds also create a small administrative burden. You have to track which bonds have matured, remember to redeem them, and file the tax forms. Moving the money to an account where it continues to work for you simplifies your finances.

The difference between maturity and the may provide doubling

EE bonds sold after May 2003 are may provide to double in value within 20 years. This means if you paid $50 for a bond, it will be worth at least $100 by year 20, even if interest rates are very low. This may provide ends at year 20—the bond does not continue doubling every 20 years.

After year 20, the bond continues to earn interest at the current rate until year 30. The doubling may provide simply ensures you will not lose money on the bond if you hold it for two decades. Final maturity at year 30 is when all interest earnings stop completely.

What to do if you have lost track of old bonds

If you own EE bonds but are not sure when they were issued or whether they have matured, go to TreasuryDirect.gov and log into your account. You will see every bond you own, the issue date, the current value, and the maturity date. This is the fastest way to learn about any of your bonds have stopped earning interest.

If you own paper bonds and do not have records, the bond itself shows the issue date. Look at the front of the certificate—it will say "Series EE" and have a date printed on it. Count 30 years forward from that date to find the maturity date.

Frequently Asked Questions

Can I cash an EE bond before it matures?

Yes. You can redeem an EE bond at any time after you have held it for one year. If you redeem it before five years have passed, you lose the last three months of interest as a penalty. After five years, there is no penalty.

Do I have to pay taxes on the interest when the bond matures?

You owe federal income tax on the interest earned, but you can choose when to report it. Most people report the interest in the year they redeem the bond. You will receive a 1099-INT form showing the interest amount. State and local taxes vary by location.

What if I never redeem my bond after it matures?

The bond stays in your account or in your possession, but it earns nothing. The money is still yours and the bond does not expire, but you are missing the opportunity to put that money to work elsewhere. There is no penalty for holding it, but there is no benefit either.

Can I transfer a mature bond to someone else?

You can redeem the bond and give the person the cash, but you cannot transfer the bond itself to another owner. Once redeemed, the bond ceases to exist. If you want to give someone money through a savings bond, you would need to purchase a new bond in their name.