How long you hold a savings bond before it stops earning interest

A US savings bond stops earning interest on a specific date called its maturity date or final maturity date. For Series EE bonds, this is 30 years from the issue date. For Series I bonds, it is also 30 years. Once that date passes, the bond no longer accrues interest, even if you still hold it.

The issue date is printed on your bond certificate or shown in your TreasuryDirect account. If you bought a Series EE bond on March 15, 2020, it will reach final maturity on March 15, 2050. On that exact date, the interest stops accumulating. You can still cash it in after maturity, but you will receive only the value it had on the maturity date—nothing more.

Before final maturity arrives, your bond passes through an earlier milestone called original maturity, which occurs 20 years after issue. At that point, the interest rate changes. For Series EE bonds, the rate resets to a new rate set by the Treasury. For Series I bonds, the composite rate resets every six months based on inflation and fixed-rate components. The bond keeps earning at the new rate until it reaches final maturity at year 30.

Key Takeaways

  • Series EE and Series I bonds stop earning interest 30 years after their issue date, which is printed on your bond or visible in TreasuryDirect.
  • At 20 years (original maturity), the interest rate resets to a new rate set by the Treasury, but the bond continues to earn until year 30.
  • After final maturity at 30 years, you can still cash the bond, but it will not earn any additional interest.
  • You can cash a bond anytime after one year of ownership, but cashing before five years means losing the last three months of interest as a penalty.

Why bonds have a maturity date

The Treasury sets a maturity date to define how long it will may provide the bond's value and interest rate. After 30 years, the government's obligation to pay interest ends. This is not a penalty—it is simply the term of the agreement you made when you purchased the bond.

The 30-year span gives you a long window to hold the bond and benefit from compound interest. Most people who buy savings bonds intend to hold them for years, so a 30-year maturity date aligns with that use. If you need money sooner, you can redeem the bond early, though early redemption comes with a cost.

What happens if you hold a bond past maturity

If you do not cash in your bond by the final maturity date, it simply stops earning interest. The bond does not disappear, and you do not lose the money. You still own it and can cash it in at any time. However, the value will be frozen at whatever it was on the maturity date.

For example, if your Series EE bond reaches final maturity with a value of $5,000, and you do not cash it for another five years, it will still be worth $5,000 when you finally redeem it. You will have missed five years of potential interest earnings. This is why the Treasury recommends cashing bonds once they reach final maturity—there is no benefit to holding them longer.

How to find your bond's maturity date

If you own bonds through TreasuryDirect (the online system run by the US Department of the Treasury), log in to your account and view your holdings. The issue date and maturity date are both listed. You can calculate the maturity date yourself: add 30 years to the issue date.

If you own paper bonds, the issue date is printed on the certificate itself, usually near the top. It may say "Series EE" or "Series I" along with a month and year. Again, add 30 years to find the final maturity date. If you have lost the certificate or cannot locate the issue date, you can contact the Treasury's Savings Bond Division or use the Savings Bond Calculator on TreasuryDirect to look up older bonds.

The difference between original maturity and final maturity

Original maturity occurs at 20 years. At this point, your bond has earned interest at its original rate for two decades. The Treasury then resets the interest rate for the next 10 years. For Series EE bonds, the new rate is set by the Treasury and announced each May and November. For Series I bonds, the new rate is a combination of a fixed rate (which never changes) and an inflation rate (which adjusts every six months).

Final maturity occurs at 30 years. This is when the bond stops earning interest entirely. The distinction matters because it affects how much your bond will be worth. A bond that earns at a higher rate between years 20 and 30 will have a higher final value than one that earns at a lower rate during that period.

What to do when your bond approaches maturity

As your bond nears its 30-year mark, plan to redeem it. You can cash it through TreasuryDirect by logging into your account and requesting a redemption. The money will be deposited into your linked bank account within a few business days. If you own paper bonds, you can redeem them at most banks or through the Treasury.

Once you have the cash, you can reinvest it in new savings bonds if you want to continue building savings with Treasury securities. Series I bonds are popular for this purpose because they adjust with inflation. Series EE bonds are also available and offer a may provide minimum return. There is no penalty for cashing a bond at or after its maturity date—you simply receive its full value.

Early redemption and the maturity date

You do not have to wait until maturity to cash a bond. You can redeem a Series EE or Series I bond anytime after you have owned it for one year. However, if you cash it before five years have passed, you lose the last three months of interest as a penalty. This penalty applies regardless of whether the bond has reached original maturity or final maturity.

For example, if you cash a Series I bond after three years, you forfeit three months of interest earnings. If you cash it after five years or more, you receive all the interest that has accrued. This is why the five-year mark is important: it is the point at which early redemption no longer costs you anything.

Frequently Asked Questions

Can I cash my bond after it reaches final maturity?

Yes. You can cash a bond anytime after final maturity. It will not earn any more interest, but you will receive its full value as of the maturity date. There is no deadline to redeem it, though holding it longer serves no financial purpose.

What is the difference between a 20-year and 30-year bond?

All Series EE and Series I bonds have a 30-year final maturity. The 20-year mark is called original maturity, when the interest rate resets. There is no separate "20-year bond"—the bond continues earning until year 30.

If I lose my bond certificate, can I still cash it after maturity?

Yes. You can contact the Treasury's Savings Bond Division or use TreasuryDirect to locate your bond and request redemption. You will need to provide identifying information. If the bond is in TreasuryDirect, you can redeem it directly through your account.

Do I have to cash my bond on the maturity date?

No. You can cash it anytime after maturity. However, waiting longer does not increase its value. The bond stops earning interest on the maturity date, so there is no financial benefit to holding it past that point.

What happens to the interest rate after original maturity?

The Treasury sets a new rate for the 10 years between original maturity (year 20) and final maturity (year 30). For Series EE bonds, the new rate is announced each May and November. For Series I bonds, the rate combines a fixed component with an inflation adjustment that changes every six months.