Government Savings Bond Maturity Information

Information on government savings bond maturity is important to know when purchasing bonds. Government issued savings bonds are typically the safest form of investment because they are backed in good faith by the U.S. government. These bonds are a way for the government to pay for their borrowing needs. The maturity rate of these savings bonds differs depending on the type of bond purchased. These bonds consist of Series E and EE bonds or Series H and HH bonds and Series I bonds.


Series E and EE Bonds

Series EE bonds are purchased at half of their face value. For instance, if you are looking to purchase a 50 dollar savings bond for your child, you would only be expected to pay 25 dollars at time of purchase. These bonds earn a fixed rate of interest over 20 years time. Upon maturation, you are able to cash them at face value and receive any interest accrued. These bonds will pay interest up to 30 years from their purchase date. The maximum amount you can invest in a Series EE Savings Bond in a year is 5,000 dollars cash. From May 1941- November 1965 Series E bonds were issued with a maturation date of 40 years from issuance. The next set of E bonds were issued from December of 1965 until June of 1980 and these bonds mature at 30 years. These bonds are no longer issued, so the date of purchase will determine their date of maturation.

Series H and HH Bonds

Series HH bonds are purchased at their face value and can only be purchased in exchange for Series EE bonds. When Series HH bonds mature, after 20 years, they are cashed in at purchase value, with no interest accrued. There is no cap amount placed on how many bonds you can purchase within a year. Upon maturity, you are expected to report on your tax returns any interest accrued from the bonds you transferred to purchase this bond and the monies accrued at the time of maturity. Both Series H and HH bonds pay interest on a semi annual basis which is taxable and required to be reported. Series H bonds were sold between 1957 and 1979. They mature after 30 years and they are not longer being sold.

Series I Bonds

Series I bonds mature after 30 years of their issue date. These bonds are purchased at their face value and grow over time. The determination on how much money they accrue is based on inflation indexed earnings. This form of bond allows you the deferral of income tax until it is cashed out, at which point you are expected to report the interest earned on your tax returns in the year the bond was cashed.

Depending on your desired investment, you have the ability to choose between the above bonds. The date of maturation is important to note when purchasing these bonds so you are aware of the amount of money earned and the purchasing costs. As noted above, most government issued bonds have a maturation length of about 20 to 30 years in order for you to receive the maximum benefits of your investment.

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