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.
Series EE Bonds Maturity Dates
Savings bonds work as zero-coupon bonds, which means your interest payments are added to the bond’s principal value instead of being 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. EE bonds are issued with a fixed rate for up to 30 years. Older bonds issued between 1997 and 2005 have a variable rate that changes every six months. Bonds older than that have rates that depend on what year they were purchased. In the past, EE bonds have been purchased at a discount, and they reached face value at maturity. Currently, investors purchase EE bonds at their face value, meaning a $50 EE bond costs $50 to buy. The EE bond’s value will be worth twice the amount you paid for it in 20 years, regardless of the interest rate. The Treasury makes a one-time adjustment to fulfill this guarantee. The maturity dates for Series EE bonds are:
November 1982 to October 1986: 10 yearsNovember 1986 to February 1993: 12 yearsMarch 1993 to April 1995: 18 yearsMay 1995 to May 2003: 17 yearsJune 2003 and after: 20 years
How Long Should You Wait?
The Treasury guarantees that your EE bonds will reach maturity in 20 years, but some EE bonds issued in years past may reach maturity sooner. It depends on their built-in interest rate. Check the issue dates before you cash in your bonds. Some bonds may have an interest rate that’s quite low. Bonds issued from May 2022 through Oct. 2022 earned interest at a rate of just 0.10%.
How EE Bond Interest Accrues and Compounds
Interest on EE bonds is fixed, accrues monthly, and is added to the principal every six months for bonds issued in May 1995 and after. For EE bonds issued before May 1985, interest is added every six months. Your bond will continue to accrue interest until 30 years have passed from the date of issue or you cash out the bond. The following table of interest accrual dates applies to Series EE bonds issued before March 1993, from 1980 through April 2005: Stocks may be a better option if you can tolerate higher levels of risk and don’t mind seeing your account value go up and down. You or you and your adviser can decide what works best based on your own needs, goals, and resources.
