- To open the Calculator, click the “Get Started” link above or the icon at the bottom of this page.
- Choose your paper bond’s series and denomination from the series and denomination drop-down boxes once it’s opened.
- Fill in the issue date found on the paper bond.
- Note: Two-digit months (e.g. 01, 12) and four-digit years must be entered (e.g. 1985 or 2001).
- See our bond diagram if you’re not sure where to look for your paper bond’s issue date or serial number.
Note: The amount given by the Calculator for Series EE or Series I savings bonds that are less than five years old incorporates the three-month interest penalty we would impose if you cashed the bond before five years. That is, the penalty sum has already been deducted.
Is it possible to check my savings bonds online?
Log in to your TreasuryDirect account to see the current value of your electronic bonds. Check to see whether you hold any bonds. Make sure the serial number you enter is correct. Ascertain that a bond can be cashed.
How can I find out when my US Savings Bonds are due to mature?
The full maturity period of US Series EE Savings Bonds is 30 years from the date of purchase. With this in mind, you may determine the maturity date of your bond by adding 30 years to the original purchase date.
After 30 years, how much is a $50 EE savings bond worth?
Savings bonds are regarded as one of the most secure investments available. The underlying principle is that the value of a savings bond grows over time, but it’s easy to lose track of how much it’s worth over time.
The TreasuryDirect savings bond calculator, fortunately, makes determining the value of a purchased savings bond a breeze. You’ll need the bond series, face value, serial number, and issuance date to figure out how much your savings bond is worth.
If you bought a $50 Series EE bond in May 2000, for example, you would have paid $25. At maturity, the government committed to repay the face amount plus interest, bringing the total value to $53.08 by May 2020. A $50 bond purchased for $25 30 years ago is now worth $103.68.
How long does it take for a savings bond to reach maturity?
In about 30 years, most savings bonds stop earning interest (or achieve maturity). A savings bond can be redeemed as soon as one year after purchase, but it’s normally best to wait at least five years so you don’t miss out on the last three months of interest. If you redeem a bond after 24 months, for example, you will only receive 21 months of interest. It’s usually better to wait until your bond reaches full maturity, depending on the interest rate and your individual financial demands.
When EE savings bonds age, what happens?
You might have some Series EE savings bonds that you acquired a long time ago. Maybe you keep them in a filing cabinet or a safe deposit box and just think about them once in a while. You might be curious in how EE bond interest is taxed or when they stop earning interest. If they reach their final maturity date, you may need to take steps to avoid any losses or unexpected tax penalties.
Interest deferral on savings bonds
The interest rate for Series EE Bonds issued after May 2005 is set. A variable market-based rate of return is earned on bonds purchased between May 1997 and April 30, 2005.
Bonds in the Paper Series EE were sold for half their face value. If you possess a $50 savings bond, for example, you paid $25 for it. Until the bond matures, it isn’t worth its face value. (EE bonds are no longer issued in paper form by the US Treasury Department.) Electronic Series EE Bonds are sold at face value and are redeemable for their full face value.
The minimum duration of ownership is one year, however if the bond is redeemed during the first five years, a penalty is levied. The bonds pay interest for a period of 30 years.
How savings bonds are taxed
Currently, Series EE bonds do not pay interest. Instead, the accumulated interest is represented in the bond’s redemption value. Tables of redemption values are published by the US Treasury.
Unless the owner elects to have it taxed annually, interest on EE bonds is not taxed as it accrues. If you make an election, you must disclose any previously accrued but untaxed interest in the election year. The majority of the time, this option is not made, therefore bondholders do not profit from tax deferral.
If the option to report interest annually is selected, it will apply to all future savings bonds. That is to say, the choice cannot be made bond by bond or year by year. There is, however, a method that can be used to cancel the election.
If the election is not made, when the bond is redeemed or otherwise disposed of, all of the accrued interest is finally taxed (unless it was exchanged for a Series HH bond). Even after achieving face value, the bond continues to earn interest, but at “final maturity” (after 30 years), interest ceases accruing and must be recorded.
Note that the interest on EE savings bonds is not taxed by the state. You may be able to avoid paying federal income tax on your interest if you use the money for higher education.
Deferral on savings bonds
One of the most compelling reasons to purchase EE savings bonds is the ability to accumulate interest without having to disclose or pay tax on it. Unfortunately, the law prevents this tax-free accumulation from continuing indefinitely. The bonds stop earning interest when they reach their final maturity date.
After 30 years, the Series EE bonds issued in January 1989 achieved their final maturity in January 2019. Not only have they stopped earning interest, but all of the accrued but untaxed interest will be taxable in 2019.
When a savings bond matures, what happens?
Savings bonds in the United States have a 30-year maturity. Interest on savings bonds accumulates. When a savings bond matures, the principle amount plus all accumulated interest is paid to you. The bond ceases earning interest after the maturity date. If you have electronic savings bonds through Treasury Direct, log in to your account and follow the redemption instructions. Paper savings bonds must be presented for payment at a bank or other financial institution. Savings bonds in amounts more than $1,000 may need to be mailed to a Treasury Retail Securities Site.
After 30 years, what happens to EE bonds?
Interest is paid on EE bonds until they reach 30 years or you cash them in, whichever comes first. After a year, you can cash them in. However, if you cash them before the 5th year, you will forfeit the final three months’ interest.
What is the value of a $100 savings bond dated 1999?
A $100 series I bond issued in July 1999, for example, was worth $201.52 at the time of publishing, 12 years later.
What is the current value of a $50 savings bond from 1986?
Savings bonds in the United States were a massive business in 1986, because to rising interest rates. In some minds, they were almost as hot as the stock market.
Millions of Series EE savings bonds purchased in 1986 will stop generating interest at various periods throughout 2016, depending on when the bond was issued, and will need to be cashed in the new year.
No one will send you notices or redeem your bonds for you automatically. It’s entirely up to you to decide.
In 1986, almost $12 billion in savings bonds were purchased. According to the federal Bureau of the Fiscal Service, there were more than 12.5 million Series EE savings bonds with 1986 issue dates outstanding as of the end of October.
According to Daniel Pederson, author of Savings Bonds: When to Hold, When to Fold, and Everything In-Between and president of the Savings Bond Informer, only a few years have seen greater savings bond sales. (Other significant years include 1992, when $17.6 billion in bonds were sold, 1993, when $13.3 billion was sold, and 2005, when $13.1 billion was sold.)
For the first ten years, bonds purchased from January to October 1986 had an introductory rate of 7.5 percent. Beginning in November 1986, the interest on freshly purchased bonds was due to drop to 6%, thus people piled on in October 1986.
In the last four days of October 1986, Pederson’s previous office at the Federal Reserve Bank branch in Detroit received more than 10,000 applications for savings bonds, according to Pederson. Before that, it was common to receive 50 applications every day.
What is the true value of a bond? A bond with a face value of $50 isn’t necessarily worth $50. For a $50 Series EE bond in 1986, for example, you paid $25. So you’ve been generating buzz about the $50 valuation and beyond.
The amount of money you get when you cash your bond depends on the bond and the interest rates that were paid during its existence. You can find the current value of a bond by using the Savings Bond calculator at www.treasurydirect.gov.
How much money are we discussing? In December, a $50 Series EE savings bond depicting George Washington, issued in January 1986, was valued $113.06. At the next payment in January 2016, the bond will earn a few more dollars in interest.
In December, a $500 savings bond with an image of Alexander Hamilton, issued in April 1986, was worth $1,130.60. In April 2016, the next interest payment will be made.
Until their final maturity date, all bonds purchased in 1986 are earning 4%. Keep track of when your next interest payment is due on your bonds.
For the first ten years, savings bonds purchased in 1986 paid 7.5 percent. For the first 12 years, bonds purchased in November and December 1986 paid 6%. Following that, both earned 4%.
Bonds can be cashed in a variety of places. Check with your bank; clients’ bonds are frequently cashed quickly and for big sums. Some banks and credit unions, on the other hand, refuse to redeem savings bonds at all.
Chase and PNC Banks, for example, set a $1,000 limit on redeeming savings bonds for non-customers.
If you have a large stack of bonds, you should contact a bank ahead of time to schedule an appointment. According to Joyce Harris, a spokeswoman for the federal Bureau of Fiscal Service, it’s also a good idea to double-check the bank’s dollar restrictions beforehand.
Don’t sign the payment request on the back of your bonds until you’ve been instructed to do so by the financial institution.
What types of taxes will you have to pay? You’ll have to calculate how much of the money you receive is due to interest.
The main component of the savings bond, which you paid when you bought it, is not taxable. Interest is taxed at ordinary income tax rates, not at a capital gains tax rate. If you cashed a $500 bond issued in April 1986 in December 2015, it would be worth $1,130.60. The bond was purchased for $250, and the interest earned would be taxable at $880.60.
What if you cashed all of the 1986 bonds that came due in 2016? On your 2016 tax return, you’d pay taxes on those bonds.
It’s critical to account for interest and keep all of your papers while preparing your tax returns. Details on who owes the tax can be found on TreasuryDirect.gov.