One of the safest investments available is the Series EE savings bond, issued by the U.S. government. Though savings bonds have a low rate of return, there are few investments that guarantee to double your money — but it does take 20 years.
In general, you can usually expect to earn more in interest with a Series EE savings bond than with a high-yield savings account, yet the money in the savings account is more accessible.
“This is the most common type of bond and they are purchased at a discount and accrue interest monthly,” says Paul Sundin, CPA and financial advisor with Emparion. “The bonds mature after 20 years, at which point the U.S. Treasury will guarantee that investors have doubled their money.”
If you have a Series EE savings bond, it pays to know the current value before deciding to cash it in, since in some cases waiting longer can earn you more interest.
Check the current value of your savings bond
Paper savings bonds
The U.S. Treasury stopped issuing most paper savings bonds in 2012 (with the exception of taxpayers who use some of their tax refund to purchase paper bonds), but they never expire and there’s no deadline to redeem them. They do stop earning interest upon maturity. The value of a paper savings bond can be checked by using the savings bond calculator on the TreasuryDirect website and entering this information found on bond:
- Issue date
- Bond series
- Denomination
Once you enter this information, the calculator can let you know what your paper bond is worth if you cash it in today. You can also use the calculator to determine the worth of the bond if you plan to cash it in on a future date. The TreasuryDirect website also allows you to enter information from multiple bonds to create a list and determine the total value.
Electronic savings bonds
Most savings bonds can only be purchased in electronic format nowadays. If you have electronic bonds, you can log into your TreasuryDirect account — which was used to purchase the bonds in the first place — and see the value in your account information under the current holdings tab.
How to cash in savings bonds
If you decide to cash in your Series EE savings bond, the process is fairly straightforward.
- Electronic savings bonds: If you purchased bonds through TreasuryDirect, you can cash them in on that website. Once you log into your account, you can find information on redeeming your bonds. The money will be directly deposited in a checking or savings account within two business days.
- Paper savings bonds: If your bank cashes paper savings bonds, you can bring yours to a branch to redeem them. You can also cash in paper bonds by sending them to Treasury Retail Securities Services along with FS Form 1522.
Cashing in bonds early
Series EE savings bonds can be redeemed a year from purchase, but you won’t see the same level of returns if you cash in your bond before it matures in 20 years. Bond holders only receive the guaranteed double of the face value if you hold the bond until maturity.
“The Treasury only waives the one-year rule if you experience a disaster and need to tap your cash sooner,” financial adviser Sundin says.
Additionally, if bonds are redeemed before the fifth year, the last three months of interest are forfeited, which can significantly reduce the total value of your savings bond. For that reason, Sundin cautions against purchasing savings bonds unless there’s a specific purpose for them in your portfolio.
Another feature of the Series EE savings bond is that you can also keep the bond beyond its maturity date. Bond holders continue to earn interest for up to 30 years, making the bond even more valuable the longer it is kept.
Bottom line
Series EE savings bonds mature after 20 years, and they’ll continue earning interest for 10 more years. As such, holding onto your bonds for three decades is the way to collect the largest amount of interest. Whether you have paper savings bonds or electronic ones, it’s easy to check the value of your savings bond using the federal government’s TreasuryDirect website.
FAQs
To learn the value of your electronic savings bonds, log in to your TreasuryDirect account. Find out what your paper savings bonds are worth with our online Calculator. The Calculator will price paper bonds of these series: EE, E, I, and savings notes.
How can I tell what my savings bond is worth? ›
To learn the value of your electronic savings bonds, log in to your TreasuryDirect account. Find out what your paper savings bonds are worth with our online Calculator. The Calculator will price paper bonds of these series: EE, E, I, and savings notes.
How do I find out the value of a bond? ›
The bond valuation formula can be represented as: Price = ( Coupon × 1 − ( 1 + r ) − n r ) + Par Value ( 1 + r ) n . The bond value formula can be broken into two parts for better understanding. The first part is the present value of the coupons, and the second part is the discounted value of the par value.
What happens to EE bonds after 30 years? ›
If you moved your EE bond into a TreasuryDirect account, we pay you for the bond as soon as it reaches 30 years and stops earning interest. If you still have a paper EE bond, check the issue date. If that date is more than 30 years ago, it is no longer increasing in value and you may want to cash it.
Is there a penalty for not cashing an EE bond after 30 years? ›
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.
Do savings bonds double every 10 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.
How long does it take for a $100 EE savings bond to mature? ›
All Series EE Bonds reach final maturity 30 years from issue.
Do EE bonds really double in 20 years? ›
Series EE savings bonds are a low-risk way to save money. 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.
How do I find out how much is on a bond? ›
Visit the TreasuryDirect website and navigate to the “Tools” section, where you'll find the Savings Bond Calculator. Enter the required information for each bond such as the series, denomination, serial number and issue date. The calculator will display the bond's current value, including interest earned to date.
Do savings bonds expire? ›
They're available to be cashed in after a single year, though there's a penalty for cashing them in within the first five years. Otherwise, you can keep savings bonds until they fully mature, which is generally 30 years.
If you have a savings bond socked away for a while, or someone opened one up in your name, chances are it's time to cash it in. Old savings bonds might be ready to cash in, depending on which savings bond you have and how long it was set to earn interest.
Why is my savings bond worth so little? ›
There are two primary reasons a bond might be worth less than its listed face value. A savings bond, for example, is sold at a discount to its face value and steadily appreciates in price as the bond approaches its maturity date. Upon maturity, the bond is redeemed for the full face value.
When should I cash in EE savings bonds? ›
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 you have to pay taxes on mature savings bonds? ›
Reporting the Interest for Taxes
Owners can wait to pay the taxes when they cash in the bond, when the bond matures, or when they relinquish the bond to another owner. Alternatively, they may pay the taxes yearly as interest accrues. 1 Most owners choose to defer the taxes until they redeem the bond.
How much are savings bonds worth after 20 years? ›
We guarantee that the value of your new EE bond at 20 years will be double what you paid for it.
What is the final maturity of a $100 savings bond? ›
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 I look up a savings bond by my name? ›
With your Social Security Number (or Taxpayer Identification Number) or name and state, you can use our Treasury Hunt search to see if you have any savings bonds listed in our database. If you do, you'll get information on how to claim and cash them.
