US Savings Bonds

Archive for the ‘Savings Bonds Maturity’ Category

Question: Maturity of Savings Bonds?

I have 2 Series EE Bonds that were issued to my daughter when she was born in 1998. She is now almost 9. When to bonds mature? Some people say 7 years, others say 10. It seems pointless to keep them in bond form if they have already matured. I would rather put them in an interest bearing account for her to use.

Answer: Series EE Bonds mature (meaning they stop earning further interest) after 30 years from the date of issue. You can redeem the bonds any time after 6 months from the date of issue. So basically, they are still earning interest now.

The question is do you want to redeem them now? You probably want to consider that (a) if you redeem them now, you’ll pay tax on the accrued interest in the bonds (unless you use the bonds to cover education expenses for your daughter in the year you redeem them) and (b) how much interest/investment return could you get out of the bonds if you redeemed them and invested in something else.