U.S. savings bonds are long term savings certificates issued by the U.S. Treasury. The traditional series EE savings bonds earn a fixed rate of interest until a bond is redeemed or reaches final maturity. Paper EE bonds are sold for one-half of the denomination value and the interest earned accrues towards the guarantee of the bond eventually being worth the denomination printed on the bond.
Look at your savings bond and make a note of the issue date. The Treasury issues bonds by month, so the issue date will be a month and year.
Add the following number of years to the issue date to obtain the guaranteed value date: Issue date: June 2003 to the present: 20 years. May 1995 to May 2003: 17 years. March 1993 to April 1995: 18 years. For example, a series EE savings bond issued in August 1998 will reach its denomination value -- doubling the original investment amount -- no later than August 2015.
Add 30 years to the issue date for the final maturity date of your savings bond. Any savings bond will continue to earn interest for up to 30 years. At that point the Treasury considers a bond to be fully matured and the bond will no longer earn interest.
Tips
If a series EE bond has not earned enough interest to double in value by the guarantee date, the Treasury will make a one-time interest credit to the bond's value to bring it up to the guarantee. Electronic series EE bonds are sold with a face value equal to the purchase price. The electronic version of the EE bonds will double in value on the same date as with paper bonds. Series I bonds earn a variable rate of interest based on the rate of inflation. I bonds also reach final maturity at 30 years.
References
- Treasury Direct: EE/E Bonds Rates and Terms
- TreasuryDirect.gov. "Series I Savings Bonds." Accessed Feb. 7, 2020.
- TreasuryDirect.gov. "Tax Considerations for I Bonds." Accessed Feb. 7, 2020.
- TreasuryDirect.gov. "Series I Savings Bonds FAQs." Accessed Feb. 7, 2020.
- TreasuryDirect.com. "Treasury Inflation-Protected Securities (TIPS)." Accessed Feb. 7, 2020.
Tips
- If a series EE bond has not earned enough interest to double in value by the guarantee date, the Treasury will make a one-time interest credit to the bond's value to bring it up to the guarantee.
- Electronic series EE bonds are sold with a face value equal to the purchase price. The electronic version of the EE bonds will double in value on the same date as with paper bonds.
- Series I bonds earn a variable rate of interest based on the rate of inflation. I bonds also reach final maturity at 30 years.
Writer Bio
Tim Plaehn has been writing financial, investment and trading articles and blogs since 2007. His work has appeared online at Seeking Alpha, Marketwatch.com and various other websites. Plaehn has a bachelor's degree in mathematics from the U.S. Air Force Academy.