When do my Savings Bonds mature?

My wife, Kazuko Yamaga, was given a $25 US Defense Savings Bond due 10 years from February 1942 by Mr Moshiro Murakami, Walnut Grove, CA. Exactly how does she redeem this bond?

Hi Philip – the information you’re looking for is on our page about how to cash in a Savings Bond.

Tom Adams

I have EE bonds issued 5/83. When do they stop earning ingterest?

Bob – as the article on this page notes, all Series EE and I bonds stop paying interest 30 years after issue, so your bonds are good until 5/1/2013.

Tom Adams

I want to invest in savings bonds for my grand daughter, which series would be a better choice for investment and whose name to I put them in

Thank You
Gloria Berglund

Gloria – the information you’re looking for is on our page about Savings Bonds as gifts.

Tom Adams

can you cash in a savings bond after 30 years?

Alishia – yes. After a Savings Bond is one year old you can redeem it. There is no maximum time. You can hold it longer than 30 years and then cash it, but it’s a financial mistake to do that. From a financial perspective, you should cash a Savings Bond when it stops earning interest and invest in a new Savings Bond.

Tom Adams

I have several Series E US Savings bonds purchased in 1979. Are these bonds still earning interest? If so at what rate?

I also have several Series EE US Savings bonds purchased 1991 and 1992. At what rate are these bonds earning interest?

Hi Jean – Your Savings Bonds will earn interest for 30 years, so the 1979 bonds will stop paying interest in 2009. You can use the Savings Bond Calculator on this page (upper right) to find out the interest rate and redemption value of your bonds.

Tom Adams

Hi, I purchased series EE bonds in December 1994 and would like to know when it reaches face value so that I can cash it in.

Thanks,
Nancy

Hi Nancy-Angela – There’s nothing special about the day your bond reaches face value. It stops earning interest after 30 years – in Dec 2024. You can cash it now or anytime between now and then. You don’t even have to cash it then, but it’s a mistake not to.

However, if you really want to do it on the day the bond reaches face value, as the chart above shows, bonds issued in 1994 take 18 years to reach face value, so that will be Dec 2012.

Tom Adams

I have savings bonds in my children’s names. Am I able to cash those in for them, as they are still minors?

Jill – the information you’re looking for is here.

Tom Adams

Overly matured E bonds….I recently discovered that my stack of E bonds had matured back in 1998, 2002, and 2005.

I’ve read that I will need to file an amended tax return with the IRS.

Has anyone been through this, that could guide me through the various steps I need to take to cash in these overly matured E savings bonds, and to square up with the IRS?

Dave – You should cash the bonds and reinvest the money. Don’t hold on to these stinkers.

When you do that, the bank will send you and the IRS a 1099-INT tax form reporting the interest. If the 1099 is dated for the 2008 tax year, you can just report the interest income when you do your return next spring.

On the other hand, if the bank gives you 1099-INTs with the correct tax years, it would be best to speak with a tax advisor.

Tom Adams

If they do give me interest statements for each if the seperate years, do you have any idea of how the IRS determines a penalty payment?

Do they base it on a percentage of the total dollar amount, or perhaps a flat fee?

Dave – yes there would be a penalty. It’s basically the interest you owe on the amounts.

It’s as if the government loaned you the amount of the taxes in the year it was due and now you’re paying it back with interest. The penalty amount is calculated like interest would be.

In other words, with Savings Bonds you flip from earning interest from the government to paying interest to the government (if you don’t cash the bonds in the year they stop earning interest).

Tom Adams

Hi, I have EE bonds in my kids names and my name is also on them. Can I cash them in my name and not theirs, so they are not liable for them?

Sharon – Do you mean liable for the taxes? Unless your kids are over 18 you’re liable for the tax in any case (see this post).

But if your kids are older: if your name comes first or if the names are separated by OR and your name is second, you can cash them and the 1099-INT tax form will be issued under your Social Security Number.

Tom Adams

I purchased EE bonds 10/92. For the best return, should they be cashed in 30 years? Which month? (I heard April). Would it be April 2022?

My series I bonds were purchased 10/01. What interest rate are these getting? For how long? Are penalties ever involved?

Sandra – In April 2022 your EE bonds would be 29-1/2 years old. Why not wait until Oct 2022 and get the full 30 years?

You can find out the current interest rate of your I bonds by using the calculator at the top of this page. I bond rates change every six months. The 10/01 I bonds have a fixed base rate of 3%, which makes them among the best U.S. Treasury securities to own.

There’s more information about cashing Savings Bonds here.

Tom Adams

I have a bond issued 02/1986, EE $50 Bond. Why is not the value $114.14 versus $89.14 shown in the charts?

Clay – The charts say $89.14 because that’s what the redemption value of the bond is.

In 1986, you paid $25 for the bond. Since then it’s earned $64.14 in interest – more than 2.5 times the original investment.

Tom Adams

Hi Tom,
I just discovered that I had savings bonds in my name that are now 19 years old. How do I calculate what they will be worth in another 11 years when they reach their 30 years? I used the calculator to see what they would be if issued 29 years ago, but I’d like to find a more accurate calculation. Thanks for your help!!!

Julia – the interest rate paid by your Savings Bonds is to some extent sensitive to the general level of interest rates. The rates those bonds pay can adjust up or down.

Consequently, it’s impossible to answer your question. Since we don’t know what interest rates will do over the next 11 years, we don’t know what the final value of the bonds will be.

Tom Adams

I have HH bonds that were bought 4-01 and some bought 12-92 when do they stop paying interest?

I thought it said on the face on the bonds that it was 30 years not 20.

It will make a big difference in my tax bracket if I cash the all at once so I am trying to plan on what is best.

Shirley – your HH bonds will stop paying interest after 20 years. My book has an extensive analysis about whether you should cash in HH bonds early because their rates are so low. You might find it helpful.

Tom Adams

I have mature Series E bonds issued in 1979/1980. If I reinvest the redeemed value in new bonds will I be liable for tax and/or penalties?

Connie – when you redeem you’ll have to pay the tax, no matter what you reinvest in.

And the IRS says you owe the tax in the year the bond stops paying interest – whether you cash them or not. That would be 2009 for your 1979 bonds and 2010 for your 1980 bonds.

Penalties would only apply if you didn’t do that. The biggest penalty is the lost interest from the no-interest loan you’d be giving the government. The IRS can also penalize you for not paying the tax when it was due.

Tom Adams

I am very confused by all this. I have read everyones posts and thought it would help but am now even more confused. My son was awarded a $100 series EE in Feb of 2004 for winning a contest. I understand the comments about the FINAL maturity in 30 years…. buthe is wanting to cash it in and use it towards a computer, how much would it be worth, since it was only bought 5 years ago?

Stefany – you can use the calculator at the top of this page to find out what the current redemption value of the bond is. Although it says $100 on it, the contest actually paid $50 for it, so it’s now worth $50 plus five years of interest.

Tom Adams

I am also confused. After thirty years will series EE bonds be worth over the face value? Also, why, and how much, tax must you pay to redeem bonds at thirty years? Thanks.

Jules – yes, EE bonds are worth more than face value after 30 years.

The interest the bonds earn is income to you, so you must include it on your income tax return for the tax year in which you cash the bond or it stops paying interest (30 years after issue), whichever comes first.

The amount of tax you’d pay depends on your other income and can vary from nothing at low incomes to 35% if your other taxable income is over $372,950.

Tom Adams

WHEN EE BONDS STOP EARNING INTEREST AFTER 30 YRS & I ELECT NOT TO CASH IN AT THAT TIME, MUST THE EARNED INTEREST BE REPORTABLE ON THAT YEAR’S TAX RETURN? (I DID NOT CASH IN THE BONDS)

Doris – the IRS says the tax is due in the year the bonds stop paying interest. There’s more info on this issue here.

Tom Adams

I had to get some of my savings bonds from 1993 and 1994 reissued the date is current I am wondering are they still hold the same value?

Kelly – What exactly do you mean by “the date is current”? The issue date on the reissued bonds should be the same as the issue date of the original bonds.

If it is, then the bonds have the same value as before.

If it is not, you’ve lost a lot of money. In this case, something went wrong during the reissue process and you need to bring that to the attention of whoever reissued the bonds to you and get the issue date fixed.

Tom Adams

My husband died in 2009. I am Executor of his Will. The Will established a Marital Trust, of which I am Trustee. 60 EE (paper)bonds are in his name only and need to be transferred to the Trust. If I establish a Treasury Direct account in the name of the Trust, will I be able to transfer the bonds to that account without creating a tax liability as would happen if I have to have the bonds reissued?

Dianne – Why do you think there would be a tax liability to have the bonds reissued to the trust?

In any case, the rules would be same on TD as for paper bonds. There’s more info here.

Tom Adams

Hi, Tom. This is a follow up on the question I posted on May 1st, 2009.

My husband and I had attorneys prepare Estate planning for us more than a decade ago. He was the first to die, and his death in 2009 created a Marital Trust for him under his Will. Those same attorneys are now helping with some segments of the administration of both his Trust and his Estate. They have indicated to me that the EE Bonds (paper bonds) that are solely in his name will have to be cashed and reissued in the name of the Trust. I was also told that this would create a tax liability for the accrued interest, which is almost $50K for these bonds. Since these particular bonds belonged solely to him, I had always thought they could just be transferred to the Trust, which was of his creation, and would not have to be cashed and reissued.

But your web site leads me to believe that since I am the Trustee of my husband’s Trust and am holding paper EE bonds in his name they should be transferable without triggering a tax event.

I read the additional info that you cited in your reply to me, but am still not clear on what the situation would be in my case.

Your opinion will be greatly appreciated.

Dianne – My opinion is the same as yours – that the bonds can be reissued to the trust and that this isn’t a taxable event. Now you just have to convince your lawyers that my free advice is better than the advice they’re charging you for. You might suggest they get a copy of my book.

Tom Adams