One of the principal reasons for buying EE savings bonds is the fact that interest can build up without having to currently report or pay tax on it. When the bonds reach final maturity, they stop earning interest. Series EE bonds issued in January reached final maturity after 30 years, in January That means that not only have they stopped earning interest, but all of the accrued and as yet untaxed interest is taxable in If you own Series EE bonds paper or electronic , check the issue dates.
If they have stopped earning interest, you probably want to redeem them and put the money into something more lucrative. Contact us if you have any questions about the taxability of savings bonds, including Series HH and Series I. Toggle navigation January 7, Treasury guarantees that an EE bond whether paper bought at half of face value or electronic bought at full face value will be worth at least double its purchase price when the bond reaches original maturity.
Original maturity is a point part way into the bond's year life. If an EE bond has not earned enough interest to be worth an amount that is double its purchase price on the date it reaches original maturity, Treasury will make a one-time adjustment on the original maturity date of the bond to make up the difference.
As owner of an EE bond, you pay federal income tax, but not state or local income tax, on the interest the bond earns. If you use the bond money to pay certain qualifying educational expenses, you may not have to pay federal income tax on the interest. For additional information, see Using EE bonds for Education.
You may put off paying the tax until you file your federal income tax return for the year in which you cash the EE bond. A few exceptions are some situations in which we reissue or re-register the bond. You may also decide to pay tax on the interest every year. This may be a good idea for bonds that a child owns. For the rest of the bond's life - this remaining time is known as the extended maturity period - we determine the interest rate the same way as in the original period, unless we announce otherwise before the extended period.
As of , U. Savings Bonds go digital. Explore our interactive timeline to learn about their rich history. Department of the Treasury, Bureau of the Fiscal Service. Other Treasury Securities. Replace or Reissue. EE Bonds May through April Market Based Savings Bonds Rates. When Interest is Added to Your Bonds. The EE bonds issued from May through October took eight years to reach full face value. The same EE bonds issued in will take 20 years to reach their full face value.
It can pay to know how long it takes Series EE savings bonds to mature and to be able to calculate their maturity dates. Learn how to zero in on the bonds that are right for you. Savings bonds work as zero-coupon bonds. Bond coupons , or interest payments, are added to a bond's principal value rather than paid out periodically. The difference in maturity dates for these bonds results from the differing rates of interest built into each Series EE bond when it's issued.
Bonds issued in come with a fixed rate for up to 30 years. Older bonds issued between and have a variable rate that changes twice a year. Bonds older than that have rates that depend on what year they were purchased.
Log in to the Treasury's website to find the value of your electronic bonds, or use its calculator to price your paper bonds. You can also estimate the value of your bond if you know when it was purchased. EE bonds have been purchased at a discount in the past, and they reached face value at maturity. You pay face value and the bond accrues interest as you hold it if you purchase an EE bond in It grows in value by the amount of interest, or coupons, accrued each year until you either cash it in or it reaches 30 years from its date of issue.
The maturity dates for Series EE bonds are:. The U. Treasury guarantees that your EE bonds will reach maturity in 20 years, but some reach maturity sooner.
It depends on their built-in interest rate. Check the issue dates before you cash in your bonds. You can't cash them in within one year of issue. You must hold the bond for at least five years to avoid a penalty. You'll forfeit the last three months' interest if you cash in before five years.
Some bonds may have an interest rate that's quite low. Bonds issued from November through April earn interest at a rate of just 0. The Treasury will sometimes perform a one-time adjustment to bring up the bond's value so you can cash it in for its full amount.
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