What’s the best day to cash Savings Bonds?

Friday, August 13th, 2004
Categorized as: Cashing in US Savings Bonds

Is one day better than another for cashing Savings Bonds?

Tom’s response

In general, you want to cash a Savings Bond right after its value increases because of an interest payment.

Some Savings Bonds increase in value monthly, so the most you can lose by cashing on the wrong day is one month’s worth of interest.

Other Savings Bonds only increase in value every six months. Cashing on the wrong day can mean you lose up to six-months worth of interest. I call this the Savings Bond hidden interest-rate penalty.

All Series I Savings Bonds and Series EE Savings Bonds issued in May 1997 or later increase in value monthly. All other Savings Bonds, including Series HH bonds issued after May 1997, pay interest on a six-month cycle.

These bonds should be cashed near the beginning of their month of issue or of the month exactly six months later.

Readers of my book, Savings Bond Advisor, have access to a table that shows the best month to redeem any Savings Bond.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

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June 1, 2010

After six years, over 400 posts, 3,680 real comments, and over 90,000 spam comments (thank you, Akismet, for making managing a blog with comments possible), I am closing public comments on Savings-Bond-Advisor.com. I will contine to update the main articles on this site, but not the comments.

Virtually every question about Savings Bonds has been asked and answered on this site multiple times. Use the search feature (see the box in the gray area near the top of this page) or the detailed menu on the lower part of the home page to find the information you're looking for. If you have a copy of Savings Bond Advisor, you can ask me a question here.

Tom Adams

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