Jul 11, 2016 savings bonds have long been a popular gift for children as a means of helping college savings. Dear suzanne, series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final. Yes, ee bonds are a good investment, but if youre interested. How to calculate the value of your us series ee savings. Bonds are issued by month and their maturity dates depend on the type of bond you have and when you purchased it. Series ee series i savings bond redemption value tables.
Apr 25, 2016 the lowly series ee savings bond is a misunderstood and completely ignored investment. Penalty for a savings bond past final maturity budgeting. And thats a shame, because if purchased with surety that you can hold it for 20 years, it is a. Series e bonds bought between may 1941 and november 1965 mature in 40 years, but if you bought the same type of bond between december 1965 and june 1980, it would mature in 30 years. If its a series e or series h bond, then its matured, as all of those bonds are no longer being issued and all the existing ones have already hit their maturity date.
Steven terner mnuchin was sworn in as the 77th secretary of the treasury on february, 2017. Now you may only obtain series ee bonds by purchasing them electronically at treasurydirect. Series e bonds were issued from may 1, 1941 until dec. Savings bonds are an appreciationtype or accrualtype savings security. The calculator will price series ee, series e, and series i savings bonds, and savings notes. Ee savings bonds with issue dates after june 2003 have an original maturity date of 20 years from issue. If you have series ee savings bonds and are wondering how the interest you earn on them is taxed, or if you have ones reaching final maturity and need to take action to ensure theres no loss of. The rates and terms for an ee bond depend largely on when the bond was issued. While these bonds may not always provide much in the way of growth the current interest. They mature in 30 years, and the annual interest rate is 0. Series ee bonds dated january 1980 through march 1985 and series hh bonds dated january 1980 through march 1995 have also reached full maturity. Dec 26, 2018 the fixed interest rate is set at purchase and remains constant for the life of the bond.
Ee bonds are sold for half of the face value, and the u. Treasury bonds, you may have noticed some series ee savings bonds mature on different dates. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to. Series i savings bonds purchased through april 30 will have a permanent real yield of 0. Find out what your savings bonds are worth with our online calculator. Why you should invest in series i savings bonds bonds us news. These bonds were purchased at half their face value.
Series ee savings bonds can provide a safe investment, a great interest rate. Penalty for a savings bond past final maturity budgeting money. You may have series ee savings bonds that were bought many years ago. If you hold an electronic series ee or series i bond in treasurydirect, you can find the bond s current value there. If you have series e bonds issued in 1974 or later or series ee bonds, you can use the treasury hunt tool to quickly see if any bonds. The series i bond is often compared to the series ee savings bond, another nontraditional treasury vehicle. A the maturity date depends on the type of savings bond and when it was issued. Mar 28, 2017 united states series ee savings bonds are a popular gift for special occasions, available for purchase in person for half the maturity value or online for the full maturity value. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to double in value after 20 years. Interest rates and terms for series ee savings bonds. And thats a shame, because if purchased with surety that you can hold it for 20 years, it is a powerhouse of. Series e bonds bought between may 1941 and november 1965 mature in 40 years, but if.
For ee bonds with issue dates from june 1, 2003 through april 1, 2005, original maturity is 20 years after the issue date. For ee bonds with issue dates from may 1, 1997 through may 1, 2003, original maturity is 17 years after the issue date. Ee bonds have two maturity dates and earn interest until final maturity. Electronic series ee savings bonds, purchased via treasurydirect, are sold at face value. The secret of series ee savings bonds maestro wealth advisors. How long does it take for series ee bonds to mature. I cashed some series e, series ee, and series i savings bonds. The interest is issued electronically to your designated account. Treasury recommends ee bonds as a safe and patriotic investment with the full backing of the u. Department of the treasury, bureau of the fiscal service. There are two types of savings bonds offered by the treasury, series ee and series i. Perhaps you store them in a file cabinet or safe deposit box and rarely think about them.
The series of bond you have should give you a good idea if the bond has expired. What you must know about taxation of ee series bonds ed. Series ee savings bonds have a total maturity period of 30 years from the issue date, consisting of an original maturity period and one or two periods of extended maturity, which vary depending on the issue date of the bond. Features include current interest rate, next accrual date, final maturity date, and yeartodate interest earned. Series ee bonds mature after 30 years, meaning they can earn interest for that period of time. Why you should invest in series i savings bonds bonds. Savings bonds calculator series ee savings bonds faq bankrate. Mar 08, 2020 savings bonds come in two varieties, series ee and series i. Aug 31, 2014 but, when the series ee bonds do reach maturity and stop paying interest, which will be 30 years from the purchase anniversary, you must pay taxes on the accumulated income. Among savings bonds that have fully matured and stopped earning interest are entire series of older bonds such as a through d, f, g, j and k. The interest on an outstanding bond ceases to accrue 30 years after its issue date. Redemption rules are the same with series i bonds as series ee bonds. How to figure out the maturity date on a us savings bond. If you report savings bond interest to the irs every year.
If you elect cashbased reporting on your income tax filings with the irs, you can defer payment of taxes on the interest income of your series ee savings bonds until you redeem the bond or 30 years from the date it is issued. Series ee bonds absolutely should be cashed before their final maturity dates for the following reasons. Many people who purchased series ee bonds long ago have savings bonds worth far more than the face value of the bond because of the many years of accumulated interest. All e bonds and some ee bonds have stopped earning interest and should be cashed. How to calculate the value of your us series ee savings bond.
The original maturity period on series ee bonds varies with their issue date. How to report us savings bond series ee interest, without. Original issue discount series e and ee bonds duration. Treasury announces the rate each may 1 and november 1 for new ee bonds. Series ee savings bonds reach their full maturity date exactly 30 years after their date of purchase. Individual may 1997 through april 2005 ee bond rates.
The effective interest rate on ee series savings bonds had to be a lot more than 0. Both are issued in much smaller tranches than traditional tbills. What you can do with your treasury bond when it matures depends on where you hold the security. Some series ee bonds pay interest beyond the original maturity date, up to 30 years from issuance. Series ee bonds issued in january 1989 reached final maturity after 30 years, in january 2019. Dear suzanne, series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of. Series ee bonds stop earning interest after 30 years from issue. Individual cashing redeeming ee and e savings bonds. How to figure out the maturity date on a us savings bond when the u. You can find the issue date right under the series name, on the upper right corner of the bond. Series ee savings bond purchased prior to may 1, 2005 simply looking.
Mar 29, 2019 the us treasury produces two types of savings bonds. Ee bonds are guaranteed to reach their maturity at face value within 20. How to report us savings bond series ee interest, without 1099int form. The us treasury produces two types of savings bonds. Aug 08, 2014 most savings bonds mature and stop earning interest after 30 years, and some have shorter maturity periods. If you hold a treasury bond in treasurydirect, when the bond matures. When a bond reaches maturity, the owner is repaid its face value. Either way, you cannot tell the current value of a u. The composite rate for series i bonds issued from nov. Paper series ee bonds are purchased at 50 percent of their face value and can be redeemed for face value at maturity. Mar 22, 2012 the effective interest rate on ee series savings bonds had to be a lot more than 0. How long will it take my ee savings bonds to mature the u. Jan 03, 2020 form 8815, exclusion of interest from series ee and i u.
Older, obscure bonds such as series a d and savings notes are redeemed similarly to series eee and i bonds. That means that not only have they stopped earning interest, but all of the accrued and as yet untaxed interest is taxable in 2019. Savings bond owners used to be able to exchange maturing series eee savings bonds for series hhh savings bonds, and by making the exchange continue deferring the income tax earned on the matured. If its a series ee or series i bond, then it matures 30 years after the issue date. Series ee and series i bonds have interest rates that vary over the life. With that in mind, you can calculate the maturity date on. Tip series ee savings bonds are now sold at face value and can earn interest for up to 30 years. United states series ee savings bonds are a popular gift for special occasions, available for purchase in person for half the maturity value or online for the full maturity value. To find the current value of a savings bond, use the savings bond. Sep 14, 2015 electronic series ee savings bonds, purchased via treasurydirect, are sold at face value. These ee bonds earn the same rate of interest a fixed rate for up to 30 years. If you hold a series ee savings bond for at 20 years, the u. Savings bonds have long been a popular gift for children as a means of helping college savings. But, when the series ee bonds do reach maturity and stop paying interest, which will be 30 years from the purchase anniversary, you must pay taxes on the accumulated income.
The series ee bond is a nonmarketable, interestbearing u. How to cash in series ee savings bonds depositaccounts. If you elect cashbased reporting on your income tax filings with the irs, you can defer payment of taxes on. Once open, choose the series and denomination of your bond from the series and denomination dropdown boxes. Roosevelts directive issued the nations first baby bonds in 1935. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds issued in 2020 take 20 years to reach their full face value. It is important to determine the maturity of any u. Series i savings bonds what they are and how to buy them. Potential returns currently, savings bonds provide a tiny return series ee bonds issued from nov. But both come with kickers that make them super deals. Theres no point in holding on to them and giving the government an interestfree loan. The lowly series ee savings bond is a misunderstood and completely ignored investment. How long will it take for a savings bond to reach its face value.
Features include current interest rate, next accrual date, final maturity date. Series hh bonds mature 20 years after the issue date. Series hhh series hhh bonds paid interest throughout the life of the bond and were redeemable at face value. The time it takes a savings bond to reach face value depends on the series of bond and the value at which it was sold. Series ee bonds issued since june 2003 have had a 20year original term. Mar 01, 2019 series i bonds are sold at face value and mature after 30 years.
When you buy the bond, you know what rate of interest it will earn. How long will it take my ee savings bonds to mature. Paper ee bonds, last sold in 2011, were sold at half of face value. Series e savings bonds issued in 1975 stopped earning interest in 2005 at the bonds final maturity. With that in mind, you can calculate the maturity date on your bond by locating the. Series ee savings bonds have a total maturity period of 30 years from the issue date, consisting of an original maturity period and one or two periods of extended maturity, which vary depending on the. Series ee savings bonds can defer income taxes until redemption or 30 years. Series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the bonds. A patriot bond is a type of series ee savings bond that was issued for a period of 10 years following the 911 attack.
Earlier ee bonds had varying lengths of time to original maturity. According to dixon, both series i and series ee bonds are redeemable in the same way the main difference between series i bonds and series ee bonds is the rate at which they earn interest, she. Sep 24, 2019 when the bonds reach final maturity, they stop earning interest. Both e and ee bonds are discount bonds and redeemable before or at final maturity at increasing redemption values. How long will it take for a savings bond to reach its face. Calculate the value of a bond based on the series, denomination and issue date. Oct 29, 2019 series ee savings bonds can defer income taxes until redemption or 30 years. Savings bonds calculator series ee savings bonds faq. If you own ee bonds paper or electronic, check the.
In general, you must report the interest in income in the taxable year in which you redeemed. While these bonds may not always provide much in the way of growth the current interest rate for series ee bonds is a paltry 0. Some series ee bonds pay interest beyond the original maturity date. Most savings bonds earn interest for 30 years, although hh bonds earn.