EE bonds

By Terry Savage on November 06, 2013 | Wild Card

Will I be penalized if I hold Savings EE bonds past their maturity date of 30 yrs. ?
Thank you.

SAVAGE SAYS: All Series E bonds, and Series EE bonds that are older than 30 years, have stopped paying interest.  There is no penalty for not cashing them in, but you might find a better use for the money.   When you cash in the bond, all that accrued interest is subject to Federal (not state) income taxes.  So you might want to stagger cashing them in so you don’t move into a higher tax bracket — or lose some Federal benefits, or be required to pay more for Medicare.  Check with your tax consultant.

For everything you want to know about Series EE savings bonds, here is a link to the government’s website that will answer your questions, and let you search for the current value of your older bonds:



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