What happens to EE bonds after 30 years?
If you moved your EE bond into a
While the Treasury will not penalize you for holding a U.S. Savings Bond past its date of maturity, the Internal Revenue Service will. Interest accumulated over the life of a U.S. Savings Bond must be reported on your 1040 form for the tax year in which you redeem the bond or it reaches final maturity.
| Face Value | Purchase Amount | 30-Year Value (Purchased May 1990) |
|---|---|---|
| $50 Bond | $100 | $207.36 |
| $100 Bond | $200 | $414.72 |
| $500 Bond | $400 | $1,036.80 |
| $1,000 Bond | $800 | $2,073.60 |
Current Series EE bonds mature after 30 years, but they are guaranteed to double in value in the first 20 years during which time the interest rate is fixed. For example, if you invested $5,000 into Series EE bonds today, you are guaranteed to have at least $10,000 in 20 years.
You can cash in (redeem) your EE bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.
There is no penalty if you simply hold onto the bond after five years. There is value in holding onto most bonds. The longer they mature, the more interest bonds earn.
If you hold savings bonds and redeem them with interest earned, that interest is subject to federal income tax and possibly federal gift taxes (highly unlikely as the per-person cap is $10,000 and the gift tax exemption is $17,000).
- Online With a TreasuryDirect Account. Electronic Series EE and I savings bonds are redeemable online at the U.S. Treasury Department's TreasuryDirect website. ...
- Via Mail With FS Form 1522. Redeem up to 30 paper savings bonds using FS Form 1522 from TreasuryDirect. ...
- At a Bank or Credit Union.
| Total Price | Total Value | YTD Interest |
|---|---|---|
| $50.00 | $68.90 | $3.94 |
U.S. Savings Bonds mature after 20 or 30 years, depending on the type of bond: Series EE bonds mature after 20 years. They are sold at half their face value and are worth their full value at maturity. Series I bonds are sold at face value and mature after 30 years.
Can you still cash EE bonds at a bank?
Banks and credit unions can redeem savings bonds over the counter.
But you do not have to pay taxes at the state and local levels. You can report the interest each year you earn it or when you cash the bond. You will report it on Schedule B of your 1040. You can avoid these taxes by using the money for qualified higher education expenses.
- Electronic savings bonds can be cashed on the TreasuryDirect website, and you'll receive the proceeds within two days.
- Paper savings bonds can be cashed at major financial institutions such as your local bank.
It's a good idea to hang on to your bond for as long as possible, ideally until it matures, so you can take full advantage of compound and accrued interest. Here's how that decision might pay off with EE bonds. Let's say you purchased the maximum of $10,000 in EE bonds today, with the current interest rate of 2.10%.
All Series EE Bonds reach final maturity 30 years from issue. All Series EE bonds reach final maturity 30 years from issue. Series EE savings bonds purchased from May 1995 through April 1997 increase in value every six months. The interest rate is compounded semiannually.
- Paper Series EE savings bonds: You may be able to cash these bonds in at your bank if it provides that service. You can also cash them in by mail through TreasuryDirect.gov. ...
- Electronic Series EE savings bonds: You can create a new TreasuryDirect.gov account or sign in to your existing one.
Financial institutions now have the option to not cash savings bonds for both non-customers or new customers. Our Secret Service partners recommend that a customer be established for 12 months before cashing bonds at a financial institution.
Only about one percent of all matured savings bonds have not been redeemed, but that still amounts to a substantial sum of money owed to our citizens.
If your total interest isn't more than $1500 for the year, and you're not otherwise required to report interest income on Schedule B, report the savings bond interest with your other interest on the "Interest" line of your tax return. For more information, see the Instructions for Schedule B (Form 1040).
The interest on EE bonds isn't taxed as it accrues unless the owner elects to have it taxed annually. If an election is made, all previously accrued but untaxed interest is also reported in the election year. In most cases, this election isn't made so bond holders receive the benefits of tax deferral.
Will I get a 1099 for cashing in savings bonds?
At a bank: If a bank cashes your savings bond, they are responsible for getting you a 1099-INT. They may give or mail you the 1099-INT as soon as you cash the bond or they may wait until the following January. With us: If we cash your paper savings bond, we mail you the 1099-INT the following January.
TO CASH BONDS FOR A DECEDENT'S ESTATE:
Series EE, Series E, and Series I bonds can be cashed at a local financial institution. Some of these transactions may have to be forwarded for further processing. Series HH and Series H bonds must be sent to one of the addresses shown at the bottom of the following page.
You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website.
If your savings bond from a Series other than EE, I, or HH has finished its interest-earning life, you could cash it and use the money for something else – a project, a financial need, or a new investment like an interest-earning savings bond or other Treasury security.
While you cannot directly purchase I Bonds within an IRA, you may be able to transfer or convert existing I Bonds into an IRA. The process typically involves redeeming the I Bonds and then contributing the proceeds into an eligible IRA account, subject to IRA contribution limits and any applicable tax considerations.
