Series EE bonds reach their face value in 20 years

A Series EE bond takes 20 years to reach the value you paid for it. If you buy a $100 EE bond (which costs $50), it will be worth $100 after 20 years. This is the point where the bond has matured to its intended value.

The bond does not stop being valuable after 20 years. It continues to earn interest for up to 30 years total from the issue date. But the 20-year mark is when the Treasury guarantees the bond will be worth at least face value, no matter how interest rates have moved in the meantime.

The actual interest rate on your bond is set when you buy it and locked in for the life of the bond. Current rates change monthly, so two EE bonds bought in different months will have different rates, even though both take 20 years to reach face value.

Key Takeaways

  • Series EE bonds purchased today will reach their face value (double the purchase price) in 20 years from the issue date.
  • The interest rate is fixed when you buy the bond and does not change, so a bond bought in January earns a different rate than one bought in February.
  • You can cash in an EE bond anytime after one year, but you will lose the last three months of interest if you cash it before five years.
  • After 20 years, the bond continues earning interest until year 30, when it stops accruing value.
  • The Treasury guarantees the bond will be worth at least face value at the 20-year mark, protecting you if interest rates drop.

What happens if you cash in before 20 years

You can cash in a Series EE bond before it reaches 20 years, but you will get less than face value. The amount you receive depends on how long you have held it and what the current interest rate environment looks like.

If you cash in during the first year, you cannot do so at all—the Treasury requires you to hold EE bonds for at least one year. If you cash in between year one and year five, you lose the last three months of interest as a penalty. After five years, there is no penalty, but the bond is still worth less than face value because it has not had the full 20 years to grow.

For example, if you cash in a $100 face value bond after 10 years, it might be worth $70 or $75, depending on the rate it was issued at. You get back what you paid plus the interest earned so far, but not the full may provide amount.

How the 20-year may provide works

The Treasury's promise is specific: at the 20-year mark, your Series EE bond will be worth at least what you paid for it doubled. This may provide exists because interest rates fluctuate. If rates drop sharply after you buy your bond, the fixed rate you locked in becomes more valuable. If rates rise, your bond's value grows more slowly than new bonds being issued.

The may provide means the Treasury will add a one-time adjustment at year 20 if needed to bring the bond up to face value. In practice, this adjustment rarely happens because EE bonds are designed to reach face value through regular interest accrual. But if interest rates had been very low when you bought the bond, the adjustment ensures you still get the promised amount.

This is why the 20-year timeline matters: it is the point where the Treasury's promise kicks in, not the point where the bond becomes valuable or stops earning interest.

Interest continues after year 20

Once your Series EE bond reaches face value at year 20, it does not stop earning interest. The bond continues to accrue value at the same fixed rate it was issued at, for a total of 30 years from the issue date.

The additional 10 years of growth can be significant. A bond earning 2.5% per year will be worth considerably more at year 30 than at year 20. However, after year 30, the bond stops earning interest entirely and becomes worthless if you have not cashed it in.

This is why many people hold EE bonds longer than 20 years—the extra decade of may provide interest growth is valuable. But you need to track your bonds and cash them in before year 30, or the remaining value is lost.

How to track when your bonds mature

The easiest way to track your Series EE bonds is through TreasuryDirect, the government's online system. When you buy bonds through TreasuryDirect, you can log in anytime and see the current value of each bond, the issue date, the maturity date (20 years out), and the final redemption date (30 years out).

If you own paper EE bonds, you can look at the issue date printed on the bond itself. Add 20 years to find when it reaches face value, and add 30 years to find when it stops earning interest. You can also use the Treasury's savings bond calculator on their website to enter the series, denomination, and issue date to see the current value.

For bonds inherited or received as gifts, the issue date is what matters, not when you received them. A bond issued in 2010 reaches maturity in 2030, regardless of when you took possession of it.

What to do when bonds reach year 20

When your Series EE bond reaches 20 years, you have several choices. You can cash it in and use the money. You can hold it for the additional 10 years of interest growth. Or you can exchange it for a Series I bond through a process called a Series EE to Series I exchange, though this is less common and has specific rules.

Most people either cash in the bond or let it sit. If you let it sit, set a reminder for year 30 so you do not forget to cash it in before it stops earning interest. The Treasury does not automatically cash bonds or notify you when they reach maturity.

If you need the money before year 20, you can cash in early, but you will receive less than the may provide face value. The decision depends on whether you need the cash now or can afford to wait for the full amount.

Frequently Asked Questions

Can I cash in my EE bond exactly at 20 years, or do I have to wait longer?

You can cash in your bond anytime after one year, including at the 20-year mark. There is no requirement to hold it until 20 years—that is just when the Treasury guarantees it will be worth face value. If you cash it in before 20 years, you will receive less.

What happens to my EE bond after 30 years?

After 30 years from the issue date, your Series EE bond stops earning interest and becomes worthless if you have not cashed it in. The Treasury does not extend the earning period or notify you when the deadline approaches. You must cash it in before year 30 or lose any remaining value.

Do I owe taxes on the interest when the bond matures?

You owe federal income tax on the interest your EE bond earned, but you can choose when to pay it. You can report the interest each year as it accrues, or wait and report all of it when you cash in the bond. State and local taxes do not apply to Series EE bonds. Consult a tax professional about which approach works for your situation.

If I bought an EE bond 15 years ago, how much longer until it matures?

Your bond will reach face value 5 years from now (20 years from the original issue date). You can cash it in anytime after that, but if you cash it in before the 20-year mark, you will receive less than face value. Check TreasuryDirect or use the Treasury's calculator to see its current value.

Are older EE bonds (from before 2005) different in how long they take to mature?

Older Series EE bonds issued before May 2005 take 30 years to reach face value, not 20 years. If you own bonds from that era, add 30 years to the issue date to find when they are may provide to reach face value. They continue earning interest for up to 40 years total. Check the bond or TreasuryDirect to confirm the issue date.