Store savings bond information you enter so you can view it again at a later date. Ee savings bonds one of the popular products of the united states treasury department. Series e savings bonds issued in 1975 stopped earning interest in 2005 at the bonds final maturity. 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. They can be purchased at banks, through payroll savings plans or on the treasury direct website.
Series ee savings bonds can be bought directly from the. Jul 11, 2016 with that in mind, here are five things you should know about the tax treatment of series ee bonds. Nov 21, 2018 a patriot bond is a type of series ee savings bond that was issued for a period of 10 years following the 911 attack. If the owner of series ee bonds decides to extend the maturity date, series ee bonds continue to earn interest under the extension period terms. Series ee savings bonds reach their full maturity date exactly 30 years after their date of purchase. The worth of a patriot bond is enhanced by tax advantages. How long will it take my ee savings bonds to mature. With that in mind, you can calculate the maturity date on. Nov 05, 2019 before the advent of series ee bonds, your grandparents might have bought you a series e savings bond. Individual cashing redeeming ee and e savings bonds.
The value of your savings investment for the date you selected will be displayed by the calculator. Electronic series ee savings bonds, purchased via treasurydirect, are sold at face value. We issue those substitute bonds in electronic form, in our online system treasurydirect. 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. Ee bonds earn interest for 30 years if you dont cash the bonds before they mature. How long does it take for series ee savings bonds to reach face.
The series of bond you have should give you a good idea if the bond has expired. Ee bonds are sold for half of the face value, and the u. 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. Article 8, section 8, clause 2 of the constitution authorizes the federal government to borrow money on the credit of the united states. Aug 08, 2014 most savings bonds mature and stop earning interest after 30 years, and some have shorter maturity periods. Calculate the value of your paper savings bonds treasurydirect. So the longer you hold the bond up to 30 years, the more it is worth.
If you cash an ee bond before it is five years old, you will lose the last three months of interest. Series ee savings bond purchased prior to may 1, 2005 simply looking. Find out what your savings bonds are worth with our online calculator. But you can go online to purchase two types of electronic savings bonds. If you can afford to tie up your money for 20 years, stocks may be a better. With that in mind, you can calculate the maturity date on your bond by locating the. Fs form 1048 department of the treasury bureau of the fiscal service 1.
Features include current interest rate, next accrual date, final maturity date, and yeartodate interest earned. The time it takes a savings bond to reach face value depends on the series of. 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. The inflationindexed version pays a fixed amount plus an amount adjusted every. Theres no point in holding on to them and giving the government an interestfree loan. Just because your savings bonds have reached maturity doesnt mean they arent paying interest. Series ee bonds, the common variety first issued in 1980and still being issued today, were designed to pay interest for up to 30 years. Effective may 1, 2005, the interest rate for a series ee bond issued on or after that date will be a fixed rate of interest determined by the secretary of the treasury or the secretarys designee. Discover how long it takes for series ee savings bonds to mature, and learn how. Earlier ee bonds had varying lengths of time to original maturity. How to figure out the maturity date on a us savings bond when the u. Series ee bonds pay a fixed rate but are guaranteed to pay at least double the purchase price when they reach initial maturity.
A number of tools are provided by the treasury direct, to help calculate the money value of series ee savings investments. What you must know about taxation of ee series bonds ed. The bonds can be delivered only to recipients with a valid treasurydirect account. You may incur an interest penalty if you redeem the investment during the first five years. Series hhh series hhh bonds paid interest throughout the life of the bond and were redeemable at face value. Series i savings bond in the united states, a savings bond with either a fixed interest rate or an inflationindexed interest rate. Roosevelts directive issued the nations first baby bonds in 1935.
How do i authorize an attorneyinfact to cash my bonds. Series i savings bond financial definition of series i. There is no state or local income tax on the interest. Steven terner mnuchin was sworn in as the 77th secretary of the treasury on february, 2017. For ee bonds bought from may 1, 2020, through october 31, 2020, the rate is 0. This article will help you understand how to invest in us series ee savings bonds, how exactly does it works and what. 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. United states savings bonds series e before 1980 and series ee after, including patriot bonds see below are issued on a noninterest bearing discount basis. Interest is added to an ee bond monthly and paid when you cash the bond.
Treasury provides savings certificates in the form of series ee investments. Trust transactions united states savings bonds and notes. If your recipient does not yet have a treasurydirect account, you. If the hh bond carries deferred interest, you will receive. The redeemed value equals the price plus accrued interest. The interest is issued electronically to your designated account. If you have ever wondered how savings on your bond are calculated, you will be surprised to know just how simple it is to calculate the value of a savings. These bonds were purchased at half their face value. Change the value as of date at the top of the calculator to the. How to figure out the maturity date on a us savings bond.
For series ee and series i savings bonds, we no longer issue substitute bonds. The calculator will price series ee, series e, and series i savings bonds, and savings notes. Money bonds bonds types government bonds united states savings bonds. The united states department of the treasury has issued savings bonds since 1935 on the credit of the united states to raise funds for federal programs and operations. Calculate the value of a bond based on the series, denomination and issue date entered.
Savings bond calculator when to cash in series ee savings bonds. Savings bonds are currently offered in two forms, series ee and series i bonds. Mar 23, 2020 savings bonds have been one of the most popular investments in the united states since 1935. 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. Interest accrues at stated intervals and becomes part of the redemption value paid when the bond is cashed or finally matures. For series ee and series i savings bonds, we no longer issue substitute bonds in paper form. Potential returns currently, savings bonds provide a tiny return series ee bonds issued from nov. Series ee bonds issued on or after may 1, 1997 and prior to may 1, 2005 will earn interest based on fiveyear treasury security yields right from the start. Mar 29, 2019 the us treasury produces two types of savings bonds. Savings bonds calculator series ee savings bonds faq. How long will it take for a savings bond to reach its face value. Either way, you cannot tell the current value of a u.
How long does it take for series ee bonds to mature. Making any false, fictitious, or fraudulent claim or statement to the united states is a crimeand. May 01, 2020 series ee bonds issued may 2005 and after earn a fixed rate of interest. Savings bonds are considered one of the safest investments. Older, obscure bonds such as series a d and savings notes are redeemed similarly to series eee and i bonds. Mar 28, 2017 e and ee savings bonds differ from i series savings bonds in that they earn fixed rates of interest and are purchased at onehalf the face value of the bonds, maturing to their full value at a later date usually an average of 17 years. Individual cashing redeeming series hh savings bonds. 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.
This amount represents interest that was earned on the series ee or e bonds andor savings notes that were exchanged for the hh or h bond with tax deferral privileges. Penalty for a savings bond past final maturity budgeting. Savings bonds calculator series ee savings bonds faq bankrate. As a debt obligation of the united states federal government, series ee bond interest like other u. Before you move to cash in your bonds, check the issue date. If there is a typed or handwritten amount on the face of any series hh or h bond, that amount will be reported to the irs for the tax year of the redemption. Those were issued from 1941 to 1980, and all of them have stopped earning interest, too. It is important to determine the maturity of any u. 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. To get a good return, a series ee bond must be held to maturity a period of 20 years. This final rule changes the interest rate determination for united states savings bonds of series ee. However, some reach maturity sooner depending on their builtin interest rate.
Treasury department gives you a guarantee that your ee bonds will reach maturity in 20 years. Physical paper certificate series ee savings bonds. The series ee bond is a nonmarketable, interestbearing u. Interest rates and terms for series ee savings bonds. The united states treasury department used to sell series ee bonds at half the face value with the. The series ee bonds are the fixedinterest savings bonds now being issued. How to calculate the value of your us series ee savings bond. Ee bonds issued since may 2005 earn a fixed rate of interest. Paper ee bonds, last sold in 2011, were sold at half of face value more on rates and terms. Ee bonds purchased between may 1997 and april 30, 2005, earn a variable rate of interest. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to double in value after 20 years.
Treasury sells the paper series ee savings bond at half of their face value. 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. Series e bonds bought between may 1941 and november 1965 mature in 40 years, but if. 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. 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. Bonds are issued by month and their maturity dates depend on the type of bond you have and when you purchased it.
Ee savings bonds issued in the 1980s and early 1990s have an original maturity of. The series ee bonds are the fixedinterest savings bonds now. Savings bonds are an appreciationtype or accrualtype savings security. All series ee savings bonds are now sold at face value and can earn interest up to 30 years. Series ee bonds are purchased at a discount of face value. Some series ee bonds pay interest beyond the original maturity date. Treasurys ee bonds issued in 1981 and 1982 only took. Treasury bonds, you may have noticed some series ee savings bonds mature on different dates.
An hh bond s face value may include deferred postponed interest from an earlier bond. Features include current interest rate, next accrual date, final maturity date. How long will it take my ee savings bonds to mature the u. Effective may 1, 2005, the interest rate for a series ee bond issued on or after that date will be a fixed. Ee savings bonds with issue dates after june 2003 have an original maturity date of 20 years from issue. The interest on an outstanding bond ceases to accrue 30 years after its issue date. Check or calculate the value of a savings bond online the balance.
Program rules, interest rates, maturity dates, and other information related to savings bonds. When you buy the bond, you know the rate of interest it will earn. The drastically different maturity dates for these bonds result from the differing. For instructions, please see fs publication 0105, power of attorney. 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. May 10, 2010 just because your savings bonds have reached maturity doesnt mean they arent paying interest. Claim for lost, stolen, or destroyed united states savings bonds. The rates and terms for an ee bond depend largely on when the bond was issued. Series ee savings bonds are lowrisk savings products that pay interest until they reach 30 years or you cash them, whichever comes first. It made money for you by earning interest every six months up to its final maturity date. 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. 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. Penalty for a savings bond past final maturity budgeting money.
There are two types of savings bonds offered by the treasury, series ee and series i. Savings bonds have been one of the most popular investments in the united states for more than a century, and perhaps the series ee savings bond is the most well known. When the bond matures, the owner receives 100 percent of the face value. With that in mind, here are five things you should know about the tax treatment of series ee bonds.
Treasury recommends ee bonds as a safe and patriotic investment with the full backing of the u. Savings bonds are an appreciationtype or accrualtype savings. The only way to buy ee bonds is to buy them in electronic form in treasurydirect. Series ee bonds pay a fixed rate but are guaranteed to pay at least double the purchase price when they reach initial maturity at 20 years. An official website of the united states government.