What “Final Maturity” Means for Your Savings Bonds (And Why You Should Cash Them)

Many bond holders don’t realize their savings bonds have an expiration date called “final maturity.” After this date, your bonds stop earning interest entirely, essentially becoming dormant money. Understanding when your bonds reach final maturity—and acting before that date—can save you from missing out on years of potential earnings.

If you’ve been holding savings bonds for decades, this article will help you avoid the costly mistake of letting your money sit idle when it could be working harder for you.

What is Final Maturity for Savings Bonds?

Final maturity is the point when your savings bonds stop earning interest completely. This is different from “original maturity,” which is when your EE bonds reach their guaranteed face value (typically after 20 years) or when your bonds have earned interest for their initial term.

Here’s what you need to know about final maturity:

Final maturity is when bonds stop earning interest completely – Your principal remains safe, but no additional interest accrues
Different from original maturity – Original maturity is when bonds reach face value; final maturity is when they stop growing entirely
Applies to all savings bond series – Both EE and iBonds have final maturity dates
Bonds become “dead money” – After final maturity, your investment earns zero return

Think of it this way: if you bought a $100 EE bond in 1994, it reached its face value of $200 around 2014 (original maturity). But it continued earning interest until 2024—its final maturity date. After 2024, that bond earns absolutely nothing, even though you can still cash it for whatever value it had reached by 2024.

How Final Maturity Dates Differ by Bond Type

Understanding your specific bond’s timeline helps you plan when to take action. Here’s how final maturity works for different savings bond series:

Series EE Bonds:

Final maturity: 30 years from issue date
Paper and electronic versions follow the same rule
Example: A bond issued in January 1995 reaches final maturity in January 2025

Series I Bonds:

Final maturity: 30 years from issue date
Inflation adjustments stop at final maturity
Example: A bond issued in May 2000 reaches final maturity in May 2030

How to Find Your Bond’s Issue Date:

Check your TreasuryDirect account for electronic bonds
Look at the issue date printed on paper bonds
Add exactly 30 years to determine final maturity

The 30-year rule is absolute. There are no extensions or grace periods. On the exact anniversary of your bond’s 30th year, interest payments cease permanently.

What Happens When Your Bond Reaches Final Maturity

When your savings bond hits its final maturity date, several things happen—none of them good for your finances:

Interest payments stop immediately: Your bond essentially becomes a checking account with no interest. Whether it was earning 3% annually or benefiting from iBond inflation adjustments, those payments end on the final maturity date.

Principal remains safe but earns nothing: Your money isn’t lost—you can still redeem the bond for its accumulated value. However, every day you wait past final maturity is a day of zero growth.

No automatic redemption or notification: The Treasury doesn’t send you a letter saying “Your bond stopped earning interest!” You must track these dates yourself or risk discovering the problem years later.

Opportunity cost grows daily: While your bond sits dormant, you miss out on potential earnings from new bonds, money market accounts, or other conservative investments.

Consider this example: If you have a $10,000 bond that reached final maturity two years ago, and current iBonds are paying 4.28%, you’ve already missed out on approximately $872 in potential earnings. That’s real money lost to inaction.

Why You Should Cash Bonds Before Final Maturity

Cashing your bonds before they reach final maturity isn’t just smart—it’s essential for maintaining good financial health. Here’s why:

Reinvestment opportunities exist: Current iBonds offer inflation protection that your old, mature bonds no longer provide. Money market accounts and CDs may also offer competitive rates for conservative savers.

Tax advantages of strategic timing: You can spread out bond redemptions across multiple tax years to minimize the impact of reporting accrued interest as income. This gives you more control over your tax burden.

Avoid the “dead money” trap: Money that isn’t growing is losing purchasing power to inflation. Even a modest 2% annual inflation rate means your stagnant bond money loses real value over time.

Estate planning benefits: If you’re nearing or in retirement, having liquid assets gives you more flexibility for estate planning and legacy decisions.

Peace of mind: Actively managing your bond maturity dates means you’re in control of your financial timeline, not at the mercy of forgotten paperwork.

The key is planning ahead. Don’t wait until the final maturity date—start monitoring your bonds when they’re 25-28 years old so you can make informed decisions about timing your redemptions.

Practical Tips & Tool Integration

Taking control of your bond portfolio requires a systematic approach. Here’s how to check your bonds’ maturity status and plan your next steps:

Step 1: Access Your TreasuryDirect Account Log into your TreasuryDirect account to view all electronic bonds and their issue dates. If you haven’t used your account in a while, you may need to verify your identity through their security process.

Step 2: Create a Maturity Calendar List each bond’s issue date and calculate its final maturity date (add exactly 30 years). Set calendar reminders for 2-3 years before each final maturity date.

Step 3: Use Our iBond Calculator Our iBond calculator tool helps you compare your current bond’s performance with new bond rates. Input your bond’s current value and see how it stacks up against today’s investment options.

Step 4: Review Your Portfolio Quarterly Make bond maturity review part of your regular financial check-up. This prevents any bonds from “flying under the radar” and reaching final maturity unexpectedly.

Step 5: Plan Your Redemption Strategy Consider redeeming bonds in stages rather than all at once. This helps with tax planning and gives you flexibility to reinvest in different products based on changing market conditions.

For paper bonds, you’ll need to visit a bank or credit union that processes savings bond redemptions, or mail them to the Treasury. Electronic bonds can be redeemed directly through your TreasuryDirect account.

Frequently Asked Questions

Do I get a warning before my bond reaches final maturity? No, the Treasury doesn’t send automatic notifications when bonds reach final maturity. You must track these dates yourself or risk missing out on potential earnings. Setting up your own calendar reminders is essential for staying on top of maturity dates.

Can I still cash a bond after final maturity? Yes, you can redeem bonds even after final maturity, but they won’t earn any additional interest. The sooner you cash them, the sooner you can reinvest the money. There’s no penalty for late redemption—you’re just missing out on potential growth.

What should I do with money from matured bonds? Consider purchasing new iBonds for inflation protection, or explore other conservative investments that match your risk tolerance. Current market conditions may offer better rates than letting money sit idle. You might also diversify into CDs, money market accounts, or Treasury bills depending on your timeline and goals.

Conclusion & Call-to-Action

Don’t let your savings bonds become “dead money” by missing their final maturity dates. Knowing when your bonds stop earning interest helps you make informed decisions about when to cash them and reinvest for continued growth.

The difference between an actively managed bond portfolio and a forgotten one can cost you thousands of dollars in missed opportunities. Take action today by checking your bond maturity dates and setting up a system to monitor them going forward.

Use our iBond calculator to compare your current bond performance with new investment options, and consider setting calendar reminders for bonds approaching their 30-year mark. Your future financial self will thank you for staying proactive about these important deadlines.

For more guidance on the redemption process and reinvestment decisions, explore our comprehensive resources on savings bond basics and conservative investment strategies.