Series EE bonds mature at 30 years from issue date, but you can cash them before that

A Series EE savings bond reaches final maturity 30 years after the issue date printed on the bond. The issue date is the first day of the month you purchased it. After 30 years, the bond stops earning interest and you must cash it or it becomes worthless.

You do not have to wait until maturity to cash the bond. You can redeem a Series EE bond as early as one year after purchase, though the Treasury charges a penalty if you cash it before five years have passed. The penalty is the last three months of interest earned.

The bond will continue to earn interest for the full 30 years if you hold it that long. The interest rate is set when you buy the bond and stays the same for the life of the bond.

Key Takeaways

  • Series EE bonds stop earning interest and reach final maturity exactly 30 years from their issue date.
  • You can cash a Series EE bond anytime after one year, but redeeming before five years costs you the last three months of interest.
  • After 30 years, the bond no longer earns interest and has no value if not redeemed.
  • The interest rate locked in at purchase remains the same throughout the 30-year life of the bond.
  • You redeem a Series EE bond through a bank or the TreasuryDirect website, not through the Treasury directly by mail.

How to find the issue date on your bond

The issue date appears on the face of the physical bond certificate or in your TreasuryDirect account if you own electronic bonds. For paper bonds, look for the date printed near the top or bottom of the certificate—it will say "Issue Date" or similar language. This date is always the first day of the month you purchased the bond, even if you bought it on the 15th or 30th of that month.

To calculate when your bond matures, add 30 years to the issue date. If your bond was issued January 1, 2020, it reaches final maturity on January 1, 2050. If you own electronic bonds through TreasuryDirect, log into your account and view your holdings—the maturity date is listed there.

What happens if you cash a Series EE bond before five years

Redeeming a Series EE bond between one and five years after purchase costs you a penalty. The penalty is equal to the last three months of interest the bond earned. This means you receive the principal you invested plus the interest earned, minus three months' worth of that interest.

For example, if you bought a $100 Series EE bond that earned $5 in interest over three years, and you cash it in year three, you would receive $100 (principal) plus $5 (interest) minus the three months of interest that accrued most recently. The exact amount depends on how much interest accumulated in those final three months.

After five years have passed, you can redeem the bond without any penalty. You receive the full principal plus all interest earned to that point.

Redeeming a Series EE bond at maturity or after

Once your Series EE bond reaches 30 years, you must redeem it. The bond no longer earns interest after the 30-year mark and has no value if left unredeemed. The Treasury does not automatically cash mature bonds—you have to take action.

To redeem a mature bond, take a paper bond to a bank or credit union and ask them to cash it. Bring a photo ID. If you own electronic bonds through TreasuryDirect, log into your account, select the bond, and request redemption. The funds are deposited into your linked bank account within a few business days.

When you redeem a Series EE bond, the interest you earned is subject to federal income tax in the year you cash it. You will receive a Form 1099-INT from the Treasury showing the interest amount for your tax return.

The difference between maturity and final maturity

Series EE bonds do not have an early maturity date like some other bonds. The bond earns interest for the full 30 years, and that 30-year point is both when it matures and when it reaches final maturity. There is no intermediate date where the bond stops earning interest or changes terms.

This is different from some other Treasury securities, which may have a maturity date (when you get your principal back) separate from a final maturity date (when the security expires entirely). With Series EE bonds, these are the same event at the 30-year mark.

What to do if you cannot find your bond or its issue date

If you own a paper Series EE bond but cannot locate it, you can search the Treasury's Savings Bond Database at treasuryhunt.savingsbonds.gov. Enter your Social Security number and last name to see all bonds registered to you. The database shows the issue date, denomination, and current value of each bond.

If you own electronic bonds through TreasuryDirect, log into your account at treasurydirect.gov. Your account displays all holdings with issue dates and maturity dates clearly listed. If you have forgotten your TreasuryDirect password, you can reset it using your email address and Social Security number.

If you inherited a Series EE bond or received one as a gift and do not know when it was issued, the Savings Bond Database search will show you. You will need the bond's serial number if you have the physical certificate, or you can search by the original owner's information.

Tax treatment of interest when the bond matures

The interest earned on a Series EE bond is subject to federal income tax. You pay tax on the interest in the year you redeem the bond, not in the years the interest accrued. This is called accrual-basis taxation—you owe tax on all the interest at once when you cash it.

You can choose a different tax treatment if you file Form 8818 with the IRS in the year you purchase the bond. This election allows you to report the interest each year as it accrues rather than all at once when you redeem. This approach may lower your tax burden in the redemption year if you are in a lower tax bracket then, but it requires annual reporting.

Series EE bonds are not subject to state or local income tax. Only federal tax applies. If you use the bond proceeds to pay for may have access to education expenses, you may be able to exclude some or all of the interest from federal taxation under the Education Savings Bond Program, though this has income limits and other restrictions.

Frequently Asked Questions

Can I cash a Series EE bond after it matures at 30 years?

No. Once a Series EE bond reaches 30 years, it stops earning interest and has no value. You must redeem it before or at the 30-year mark. The Treasury does not extend the maturity date or allow you to hold a mature bond any longer.

What is the penalty for cashing a Series EE bond at year three?

The penalty is three months of interest. If your bond earned $12 in total interest by year three, you lose $3 (one quarter of the annual interest rate applied to your principal). You receive your principal plus the remaining $9 in interest.

Do I have to report the maturity date to the IRS?

You report the interest earned when you redeem the bond, not the maturity date itself. The Treasury sends you a Form 1099-INT showing the interest amount. You include this on your tax return in the year you cash the bond.

What if I lose a paper Series EE bond before it matures?

Search the Treasury's Savings Bond Database at treasuryhunt.savingsbonds.gov to confirm you own it. If the bond is lost or destroyed, you can file a claim with the Treasury to replace it or receive its value. Contact the Bureau of the Fiscal Service for instructions on filing a replacement claim.

Can I transfer a Series EE bond to someone else before it matures?

Paper bonds cannot be transferred to another person. Electronic bonds owned through TreasuryDirect can be transferred only in specific cases, such as when a bond owner dies and the bond passes to their estate. You cannot gift or sell a Series EE bond to another person while you are alive.