I Bonds mature in 30 years from the issue date, but you can cash them in after just one year

An I Bond (Series I Savings Bond) reaches its full maturity date 30 years after you buy it. On that date, the bond stops earning interest entirely, whether you cash it in or not. However, you do not have to wait 30 years to access your money — you can redeem an I Bond after holding it for at least one year, though the Treasury will deduct three months of interest as a penalty if you cash it in before five years have passed.

The maturity date is printed on your bond or shown in your TreasuryDirect account. If you bought an I Bond on March 15, 2024, it will reach final maturity on March 15, 2054. After that date, it earns nothing, and you should cash it in or it will sit idle in your account.

Key Takeaways

  • I Bonds stop earning interest 30 years after purchase, so cashing them in after that date means you lose all future earnings.
  • You can redeem an I Bond after one year, but redeeming before five years means losing three months of accrued interest as a penalty.
  • The maturity date appears on your bond certificate or in your TreasuryDirect account, and you should mark it on your calendar.
  • After maturity, the bond no longer grows in value, so holding it past 30 years provides no financial benefit.

The one-year holding period and the five-year penalty window

You must hold an I Bond for at least one year before you can redeem it at all. This is a hard rule — there are no exceptions. If you need the money before that year is up, you cannot access it through the Treasury.

If you redeem the bond between one year and five years of ownership, the Treasury deducts three months of interest from your payout. For example, if your bond has earned $100 in interest but you cash it in at year three, you receive $100 minus three months of interest (roughly $25, depending on the current rate), leaving you with about $75. After five years of ownership, you can redeem without any penalty, and you keep all the interest you have earned.

What happens when an I Bond reaches 30-year maturity

Once your I Bond hits its 30-year maturity date, it stops accruing interest immediately. The bond will not earn another penny, no matter how long you hold it. Many people forget about bonds they own and discover years later that they have been sitting in a TreasuryDirect account earning zero interest since maturity.

You should cash in a matured I Bond as soon as possible after the 30-year mark. The redemption process is straightforward: log into TreasuryDirect, select the bond, and request the redemption. The Treasury deposits the full value (principal plus all interest earned) into your linked bank account within a few business days. You will receive a 1099-INT form for tax purposes showing the interest earned in that tax year.

Tracking your maturity date in TreasuryDirect

Your TreasuryDirect account shows the exact maturity date for every bond you own. Log in, go to "Manage Securities," and look at the "Final Maturity Date" column. This date is always 30 years from the issue date printed on the bond.

If you own paper I Bonds (physical certificates), the maturity date is printed on the front of the bond itself, along with the issue date. You can calculate it yourself by adding 30 years to the issue date, but checking TreasuryDirect is faster and more reliable if you have an account.

Interest rates and maturity — why the rate matters less after year five

I Bonds earn a composite rate that combines a fixed rate (set when you buy the bond and never changes) and a variable inflation rate (adjusted every six months). The composite rate determines how much your bond grows each month until maturity.

Once you pass the five-year mark, the penalty for early redemption disappears, so the interest rate becomes less critical to your decision about when to cash in. Before five years, a higher rate makes it more painful to redeem early because you lose more interest to the three-month penalty. After five years, you keep all earnings regardless of the rate, so you can redeem whenever you need the money without a financial cost.

What to do if you have lost track of an old I Bond

If you bought I Bonds years ago and cannot find them, the Treasury has a search tool called "SmartExchange" on the TreasuryDirect website. You can search by Social Security number and date of birth to locate any bonds registered in your name. This is especially useful if you own paper bonds that have been stored away and you want to check whether they have reached maturity.

Once you locate the bond, note its issue date and calculate the maturity date (30 years later). If it has already matured, prioritize cashing it in so it can stop sitting idle. If it has not yet matured, you can decide whether to hold it until maturity or redeem it early if you need the funds and are willing to accept the penalty if it has been less than five years.

Frequently Asked Questions

Can I extend an I Bond past 30 years?

No. Once an I Bond reaches its 30-year maturity date, it stops earning interest and cannot be extended. You must redeem it or it will remain in your account earning nothing. The Treasury does not offer an option to renew or roll over an I Bond into a new one automatically.

What happens to the interest if I don't cash in my bond before it matures?

The interest you earned up to the maturity date is locked in and will not disappear. When you eventually redeem the bond, you receive the full principal plus all interest earned through the 30-year mark. However, no additional interest accrues after maturity, so you lose money in real terms if inflation continues.

Do I have to pay taxes on I Bond interest when it matures?

You owe federal income tax on the interest your I Bond earned, but you can choose when to report it. You can report it each year as it accrues, or you can defer all the tax until you redeem the bond. State and local taxes do not apply to I Bond interest. When you redeem, the Treasury sends you a 1099-INT form showing the interest earned that year.

If I redeem my bond at year four, do I lose all four years of interest?

No. You keep all the interest you earned, minus a three-month penalty. If your bond earned $120 in interest over four years and you redeem at year four, you lose roughly three months of interest (about $30), so you receive $90 in interest plus your full principal. After five years, there is no penalty at all.

How do I know if my I Bond has already matured?

Check your TreasuryDirect account and compare today's date to the "Final Maturity Date" listed for each bond. If today's date is after the maturity date, the bond has matured and is no longer earning interest. You can also calculate it manually: add 30 years to the issue date on the bond certificate.