Savings bonds do expire, but not in the way most people think

A savings bond does not disappear or become worthless when it reaches its final maturity date. Instead, it stops earning interest. The bond itself remains valid — you can still cash it in at any time after maturity, and the U.S. Treasury will pay you the full value it has accumulated. The catch is that once a bond stops earning, holding it longer gains you nothing.

The expiration timeline depends on the type of bond. Series EE bonds and Series I bonds both stop earning interest after 30 years. Series HH bonds, which are no longer sold but still held by many people, stopped earning after 20 years. If you own an older bond that has reached its final maturity date, you should cash it in or reinvest the money, because leaving it untouched means your money is sitting idle.

Key Takeaways

  • Series EE and Series I bonds stop earning interest after 30 years from the issue date, though the bond itself remains valid indefinitely.
  • You can cash in a bond at any time after it reaches final maturity, and the Treasury will pay the full accumulated value.
  • Bonds that have stopped earning should be cashed in or reinvested, because no additional interest accrues after the final maturity date.
  • The issue date printed on your bond certificate determines when it stops earning — not the date you purchased it if you bought it secondhand.

How the 30-year earning period works

Both Series EE and Series I bonds earn interest for exactly 30 years from their issue date. The issue date is the first day of the month in which the bond was purchased — not the day you bought it. For example, if you bought a Series EE bond on March 15, 2024, the issue date is March 1, 2024, and the bond will stop earning on March 1, 2054.

During those 30 years, the bond earns interest at a rate set by the Treasury. For Series EE bonds, the rate is fixed for the life of the bond. For Series I bonds, the rate changes every six months based on inflation. Either way, interest compounds semiannually — meaning you earn interest on your interest — but you do not receive the money until you cash the bond in.

After 30 years, the interest stops accruing. The bond's value freezes at whatever it has grown to. If you hold the bond for another 10 years without cashing it, its value will not increase by a single cent.

What happens when a bond reaches final maturity

When your bond reaches its 30-year final maturity date, you have several options. The simplest is to cash it in at a bank or through the Treasury Department's website (TreasuryDirect.gov). You will receive the full value the bond has accumulated, including all interest earned over the 30 years.

You do not have to cash it in when ready. The bond remains redeemable for as long as you hold it — there is no important date for cashing in an expired bond. However, because it is no longer earning interest, there is no financial reason to wait. The money would earn more in a savings account, money market account, or a new bond than it would sitting in an old bond that has stopped growing.

If you inherited a bond or received one as a gift and do not know its issue date, you can find it printed on the bond certificate itself, or you can look it up through TreasuryDirect if the bond is registered in your name.

The difference between final maturity and redemption

Final maturity and redemption are not the same thing. Final maturity is when the bond stops earning interest — the 30-year mark for EE and I bonds. Redemption is when you cash the bond in and receive your money. You can redeem a bond before it reaches final maturity (though you may lose some interest if you cash in an EE bond before five years), and you can redeem it long after final maturity.

Some people confuse these terms and think a bond becomes invalid at final maturity. It does not. A 40-year-old Series EE bond is still worth cashing in — it just will not be worth any more than it was at year 30. The Treasury will still honor it at full value.

Early redemption and the five-year rule for EE bonds

If you need to cash in a Series EE bond before it reaches final maturity, you can do so at any time after you have owned it for one year. However, if you redeem it before five years have passed, you will lose the last three months of interest as a penalty. This means if you cash in a two-year-old EE bond, you only receive the interest earned through year one and nine months.

Series I bonds have a different rule: you can redeem them anytime after one year, but if you redeem before five years, you lose the last three months of interest. After five years, you can redeem with no penalty.

This early redemption penalty applies only to bonds you cash in before their final maturity date. Once a bond has reached 30 years and stopped earning, there is no penalty for cashing it in — you straightforward receive whatever value it has accumulated.

What to do with bonds that have stopped earning

If you own a bond that has reached final maturity, your best move is usually to cash it in and reinvest the money. A high-yield savings account, a money market account, or a new Series I bond (if inflation is high) will all earn you more than an old bond sitting idle.

Before you cash in, check the current value through TreasuryDirect or by contacting your bank. The value listed there is what you will receive. Some people hold expired bonds out of habit or sentiment, but from a financial standpoint, there is no reason to keep money in an account that is no longer growing.

If you have lost track of bonds you own, you can search the Treasury's Savings Bond Database at savingsbonds.gov. This database lets you look up bonds by owner name and state, and it will show you the current value and maturity status of any registered bonds.

Series HH bonds and other older bond types

Series HH bonds, which were sold until 2004, had a 20-year initial maturity period and could be extended for another 20 years. If you own an HH bond, check when it was issued to determine if it has reached final maturity. These bonds are no longer sold, but many people still hold them.

Other older bond types — Series H, Series G, and others — also had different maturity schedules. If you own a bond issued before 2005, look up its type and issue date to find out when it stops earning. The Treasury's website has historical information about all bond types and their maturity periods.

Frequently Asked Questions

Can I still cash in a bond after it expires?

Yes. A bond does not become invalid when it reaches final maturity. You can cash it in at any time after maturity and receive the full accumulated value. There is no important date for redemption, but because the bond stops earning interest, there is no financial benefit to holding it longer.

Do I lose money if I cash in a bond after it matures?

No. You receive the full value the bond has grown to over its 30-year life. Cashing in after maturity does not reduce the amount you get — it just means you stop earning additional interest from that point forward.

What if I can't find my old savings bond?

You can search the Treasury's Savings Bond Database at savingsbonds.gov using your name and state. If the bond is registered in your name, it will show up in the database with its current value and maturity status. You can then redeem it through TreasuryDirect or a bank.

Is there a penalty for cashing in a bond after it stops earning?

No. Once a bond has reached final maturity, there is no early redemption penalty. You straightforward receive the full value and can cash it in whenever you choose.

Can I reinvest the money from an expired bond into a new bond?

Yes. Once you cash in an old bond, you can purchase a new Series EE or Series I bond through TreasuryDirect. The new bond will have its own 30-year earning period and will earn interest based on the current Treasury rate.