I have some US Savings Bonds that will mature as early as June and another group later this year. Am I better off to wait for their maturity date or cash them in now. If I hold them will they continue to increase in value? The rate of interest when purchased was 6% was that reduced later. I do not need the cash at this time but if there is no benefit in holding them I can cash them in. What is your advise?
Terry Says: Definitely wait until the FINAL maturity date. That may or may not be the date written on the bond. Some bonds continue to pay interest after the initially planned maturity date. And typically those bonds have a high “floor” rate in the case of Series EE bonds. So you would want to keep holding them until the FINAL maturity date. To see exactly when that is, I recommend going to www.SavingsBonds.com and creating an “inventory” which will then give you the specifics. That is a private, secure site run by U.S. savings bond expert Jackie Brahney. You can also go to the Treasury’s website (www.TreasuryDirect.gov), where they also have a calculator, which I find more difficult to use –which is why I recommend SavingsBonds.com.
In fact, here is a link to a page on SavingsBonds.com that I think you will find particularly helpful re the maturity dates and interest calculations of Series EE bonds, depending on the date purchased.
However, when the bonds do reach final maturity– and not before — you can take them to any bank to cash them in . Taxes (federal) are due in the year the bonds reach final maturity — whether or not you cash them in. So there is no advantage to holding them past FINAL maturity date.