How long do treasury bonds mature

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Bonds Fixed Income Essentials. Table of Contents Expand. History of U. Savings Bonds. Series EE Bonds. Series I Bonds. Series HH Bonds. Key Takeaways Savings bonds are sold by governments to their citizens to help fund federal spending, and provide savers with a risk-free return. Savings bonds are sold at a discount and do not pay regular interest. Instead, as they mature, they increase in value until they reach full face value at maturity.

By waiting longer to cash in your bonds, you'll earn more interest and take advantage of any built-in price adjustments. The purchase limits for U. With just some basic information about savings bonds, you can make an educated decision about whether they're a fit for you.

Remember, savings bonds are low-risk investments. This means you're very unlikely to lose any money, but at the same time, you're not going to become a millionaire from savings bonds alone.

Savings bonds generally make sense as part of a broadly diversified portfolio with a clear investment objective. Regardless, it's a smart idea to get to know the basics of savings bonds and bring them into the realm of investment consideration. Discounted offers are only available to new members. Stock Advisor will renew at the then current list price. Investing Best Accounts. Stock Market Basics. Stock Market.

Industries to Invest In. Getting Started. Planning for Retirement. Retired: What Now? Personal Finance. Credit Cards. About Us. Who Is the Motley Fool? You pay face value and the bond accrues interest as you hold it if you purchase an EE bond in It grows in value by the amount of interest, or coupons, accrued each year until you either cash it in or it reaches 30 years from its date of issue.

The maturity dates for Series EE bonds are:. The U. Treasury guarantees that your EE bonds will reach maturity in 20 years, but some reach maturity sooner.

It depends on their built-in interest rate. Check the issue dates before you cash in your bonds. You can't cash them in within one year of issue. You must hold the bond for at least five years to avoid a penalty.

You'll forfeit the last three months' interest if you cash in before five years. Some bonds may have an interest rate that's quite low. Bonds issued from November through April earn interest at a rate of just 0.

The Treasury will sometimes perform a one-time adjustment to bring up the bond's value so you can cash it in for its full amount. This can happen if you hold your bond for 20 years, and it still hasn't reached its full face value. Interest on a bond is fixed. It accrues monthly for bonds issued in May and after. The interest rate is added every month to bonds issued between May and April It's compounded semi-annually.

Interest is added every six months for most bonds issued before May Your bond will continue to accrue interest until 30 years have passed from the date of issue, even though it may have reached maturity. Check the compounding date first if you're thinking about cashing out a savings bond. You're leaving money on the table if you cash out before interest accrues again. You can decide whether these bonds make sense for your portfolio when you understand how long it takes Series EE savings bonds to mature.

You can choose another option if savings bonds aren't the right fit for you. You're in it purely for the cash income and don't mind some volatility. You and your adviser can decide what works best based on your own needs, goals, and resources.