How long does it take for Series EE bonds to mature? | Bankrate (2024)

Key takeaways

  • Series EE bonds issued today will mature in 20 years, and they are guaranteed to double in value over that time.
  • You can let the bond continue to accumulate interest for an additional 10 years after maturity.
  • Buying a Series EE bond is a low-risk way to grow your money, but it's also a relatively low-reward option: You will likely want to diversify into riskier avenues like the stock market and real estate to grow your money at a faster rate.

When looking into safe investments, many people like the idea of using government bonds, since they’re backed by the U.S. government. Generally speaking, that translates to the best kind of guarantee possible: You’re going to get your money back.

Savings EE bonds are a popular type of government bond: They earn a fixed rate of return, and only require $25 to buy. Like other savings bonds, they give consumers an opportunity to earn extra cash through compounded returns.

When you choose Series EE bonds, you have the opportunity to double your investment if you hold them for 20 years. However, the nominal rate is often less than what you’d see with the best online savings accounts. The bonds must be purchased electronically through Treasury Direct.

Let’s take a closer look at how Series EE bond maturities work, and what you can expect when you invest in them.

Maturity dates for Series EE bonds

If you purchase a Series EE bond today, you are guaranteed to earn a fixed interest rate for 20 years, which is when the bond matures. At 20 years, the government ensures that you will be paid double the face value of the bond. Although they technically mature after 20 years, these bonds actually don’t expire for 30 years. You’ll keep earning interest for an extra decade.

As long as you cash in your bond at the maturity date, you can guarantee your investment will double. So, if you buy a Series EE bond today for $25, and hold it for 20 years, you can cash it in for $50. The Treasury Department makes an adjustment to the interest earnings if needed.

Series EE bonds haven’t always taken 20 years to hit the double-value marker and mature. Here’s a rundown of historical maturity dates:

Date of purchaseTime to maturity
January – October 198011 years
November 1980 – April 19819 years
May 1981 – October 19828 years
November 1982 – October 198610 years
November 1986 – February 199312 years
March 1993 – April 199518 years
May 1995 – May 200317 years
After June 200320 years

How long to wait to cash Series EE bonds

There are a few key dates to consider when you’re thinking about cashing in a Series EE bond.

  • 12 months: The absolute earliest you can cash in a Series EE bond is 12 months after you purchase it.
  • 5 years: While you technically can cash it in at that 12-month marker, it’s better to avoid doing so – and to keep that bond intact for at least 4 more years. Why? Because you’ll have to forfeit 3 months of interest if you cash it in within the first 5 years.
  • Your original maturity date: Since the government has offered varying timelines for its doubling guarantee, you should check your original maturity date to determine how far you are from the initial purchase date. If you want to, you can keep the money there to continue earning additional interest. Pay close attention to your interest rate, though. For example, right now a bond purchased in January of 2004 would have already doubled in value, and it will be earning an interest rate of 3.79 percent. That’s not bad, but it’s also not as high as some high-yield savings accounts and CDs.
  • 30 years: Once you’re three decades past the purchase date, it’s time to cash it in and do something else with the money. You aren’t earning more interest at this point.

Interest accrual and compounding on Series EE bonds

Series EE bonds issued since May 2005 accrue interest at a fixed monthly rate, which is compounded semi-annually. If you have bonds bought prior to that, especially paper bonds, the U.S. Treasury offers a savings bond calculator that can help you figure out what you’ve earned — and what your bond is worth today.

When deciding when to cash in your Series EE savings bonds, wait until after the compounding date. You can get an idea of when to expect your interest to be added to your bond with this chart:

Month of Series EE bond issueMonth (first day) interest will be added
January or JulyJanuary or July
February or AugustFebruary or August
March or SeptemberMarch or September
April or OctoberApril or October
May or NovemberMay or November
June or DecemberJune or December

Series EE bond maturity examples

If you’re thinking about buying a Series EE bond today, here’s a hypothetical glimpse of what kind of return you can expect at different intervals. These assume the 2.7 percent rate the government pays for bonds between November 2023 and April 30, 2024. That rate may go up or down on May 1.

Interest rateIssue price10-year value20-year value30-year value
2.7%$100$130.53$200$261.06
2.7%$1,000$1,305.28$2,000$2,610.56
2.7%$10,000$13,052.82$20,000$26,105.65

Are Series EE Savings bonds a good investment?

A Series EE Savings bond could be a good investment if you’re looking for something that’s long term and low risk, since it’s backed by the Treasury and is guaranteed to double its value in 20 years. However, 20 years to see only two times your initial investment might not be enough to help you meet certain goals.

The government doesn’t just issue Series EE bonds. Series I bonds are another low-risk option, and these bonds work a bit differently. There is no guarantee to double your money; instead, these are designed to protect your money from inflation and preserve its purchasing power. Right now, Series I bonds are paying a 5.27 percent rate, although that rate moves up and down every six months based on inflation data.

While there are unique nuances between Series EE and Series I bonds, neither of them is a good idea if you’re looking for something with liquidity. They are both required to be held for at least a year, and you’ll face an interest forfeiture penalty if you need them in the first five years. For a more liquid (but still low-risk) investment, consider opening a high-yield savings account — many of these accounts are paying rates much higher than the rates on savings bonds.

Carefully consider what you plan to use the money for and its place in your portfolio. If you want a cash component and aren’t concerned about immediate liquidity, Series EE bonds might be the right choice. However, if you’re looking for growth, you’re going to need to add other assets to your portfolio and increase your risk tolerance.

David McMillin contributed to an update to this article.

How long does it take for Series EE bonds to mature? | Bankrate (2024)

FAQs

How long does it take for Series EE bonds to mature? | Bankrate? ›

Series EE bonds issued today will mature in 20 years, and they are guaranteed to double in value over that time. You can let the bond continue to accumulate interest for an additional 10 years after maturity.

How long does it take a series EE bond to fully mature? ›

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.

How much is a $100 series EE bond worth after 30 years? ›

How to get the most value from your savings bonds
Face ValuePurchase Amount30-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

Do EE bonds really double in 20 years? ›

EE bonds you buy now have a fixed interest rate that you know when you buy the bond. That rate remains the same for at least the first 20 years. It may change after that for the last 10 of its 30 years. We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.

Are Series EE bonds ever worth more than face value? ›

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. Interest is added monthly to the bond's value.

Can you still cash EE bonds at a bank? ›

Where do I cash in a savings bond? You can cash paper bonds at a bank or through the U.S. Department of the Treasury's TreasuryDirect website. Not all banks offer the service, and many only provide it if you are an account holder, according to a NerdWallet analysis of the 20 largest U.S. banks.

How many years does it take for an EE bond to reach face value? ›

Maturity dates for Series EE bonds

Currently, Series EE bonds are guaranteed to earn a fixed interest rate for 20 years, which is when the bond matures. At 20 years, the government ensures that you will be paid double the face value of the bond.

Should I cash out my Series EE bonds? ›

If you decide to cash in between years 1 and 5, you forfeit three months of interest. If you cash in a series EE bond before 20 years, you miss out on the guarantee for your investment to double.

How much is a $50 Patriot bond worth after 20 years? ›

After 20 years, the Patriot Bond is guaranteed to be worth at least face value. So a $50 Patriot Bond, which was bought for $25, will be worth at least $50 after 20 years. It can continue to accrue interest for as many as 10 more years after that.

Is there a penalty for not cashing in matured EE savings bonds? ›

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.

Are Series EE bonds taxable? ›

Key Takeaways. Interest from EE U.S. savings bonds is taxed at the federal level but not at the state or local levels for income. The interest that savings bonds earn is the amount that a bond can be redeemed for above its face value or original purchase price.

How long until EE bonds stop earning interest? ›

They earn interest regularly for 30 years (or until you cash them if you do that before 30 years). For EE bonds you buy now, we guarantee that the bond will double in value in 20 years, even if we have to add money at 20 years to make that happen.

Which is better, EE or I savings bonds? ›

Bottom line. I bonds, with their inflation-adjusted return, safeguard the investor's purchasing power during periods of high inflation. On the other hand, EE Bonds offer predictable returns with a fixed-interest rate and a guaranteed doubling of value if held for 20 years.

How long does it take for a $100 EE savings bond to mature? ›

Currently, EE bonds reach full maturity after 30 years, but are guaranteed to double in value in the first 20 years. However, maturity dates for EE bonds used to be less than 30 years.

How do you cash in Series EE bonds? ›

You may be able to cash in paper EE bonds at a bank where you have an account or through TreasuryDirect. Ask your bank about its process for cashing savings bonds. Ask your bank how much it will cash at one time. Determine the identification or other documents you will need.

What day of the month is interest paid on EE bonds? ›

Interest is credited on the first day of each month and compounded semiannually. Interest accrues beginning with the fourth month from the issue date. For example, a bond issued in January has interest first credited on May 1, which represents one month of interest because of the 3-month interest penalty.

How long should I hold on to an EE bond? ›

You can get your cash for an EE or I savings bond any time after you have owned it for 1 year. However, the longer you hold the bond, the more it earns for you (for up to 30 years for an EE or I bond). Also, if you cash in the bond in less than 5 years, you lose the last 3 months of interest.

Do Series EE bonds pay interest after 30 years? ›

They earn interest regularly for 30 years (or until you cash them if you do that before 30 years).

When should you cash in series EE savings bonds? ›

How long should I wait to cash in a savings bond?
  1. You cannot redeem either type of bond during the first year of ownership.
  2. If you decide to cash in between years 1 and 5, you forfeit three months of interest.
  3. If you cash in a series EE bond before 20 years, you miss out on the guarantee for your investment to double.

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