Maturity of EE Series Bonds
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The maturity rules for EE bonds have changed with different issue time periods. Here is a description of the major maturity guidelines.
Bonds issued after May 2005
The initial maturity date is 20 years from purchase. The bonds purchased on or after May 1, 2005 have a maximum interest earning period of 30 years. The initial period can have a 10 year extension and there will be a rate update at the end of 20 years. The EE bonds will earn a fixed rate of interest for 20 years. The interest on these EE bonds is compounded semiannually but they increase in value every month not just every six months. If the bond has not reached its face value at the initial maturity date the Treasury will adjust the bond to its face value.
Bonds issued May 1997 through April 2005
There are several points in common with the bonds issued after May 1, 2005. Interest is compounded semiannually but they increase in value monthly and they earn interest for 30 years from date of issue. The interest rate for these bonds is based on the Treasury security yields. The new rate will be 90% of the average yield on the preceding 6 months of 5-year Treasury securities
Bonds issued May 1995 through April 1997
These bonds will earn interest up to 30 years. After the first 17 years the bond’s interest rate will be the market rate for the rest of the 30 years of interest earning. These bonds have two separate interest rates, short term and long term. The long term rate applies to bonds held between 5 and 17 years. The rate is announced every May 1 and November1.
Bonds issued March 1993 through April 1995
These bonds original maturity date is 18 years. The interest is compound semiannually for these EE bonds. They have a guaranteed rate of 4% per year but after the first five years they are eligible for market-based rates.
Bonds issued November 1986 through February 1993
These bonds have a 12 year original maturity period with a 6% guaranteed minimum rate of interest. They are on a graduated scale that starts at six months at 4.16% compounded semiannually increasing to the guaranteed rate by five years at which time they become eligible for market based rates.
Bonds issued November 1982 through October 1986
Like the bonds issued November 1986 through February 1993 they have an interest rate that is a fixed graduated scale starting at 4.16% reaching its guaranteed minimum rate at five years after which it will be eligible for market based rates. Bonds issued November 19982 through October 1986 have a 10 year original maturity. They have a guaranteed minimum rate of 7.5% compounded semiannually.
Bonds issued before November 1982
The bonds will earn interest for up to 30 years. These bonds earn interest at market-based rates or the guaranteed rate which ever has the highest value at redemption.
Go back to our EE Series Bonds 101 Guide or continue the guide with Gift EE bonds.
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