
MoMo Productions/Getty Images; Illustration: Hunter Newton/Bankrate
Important points
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You can check the value of your savings bonds through the TreasuryDirect website.
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Even if you have a paper savings bond, you can check its value online if you know the issue date, bond series, and face value.
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To get the most out of your savings bonds, it’s important to wait until they mature before cashing them out.
One of the safest investments available are Series EE savings bonds issued by the U.S. government. Although the rate of return on savings bonds is low, there are few investments that are guaranteed to double your money. However, it will take 20 years.
Generally, you can expect to earn more interest on Series EE Savings Bonds than on high-yield savings accounts, but the funds in a savings account are more accessible.
“This is the most common type of bond, purchased at a discount and accruing interest monthly,” says Paul Sandin, a certified public accountant and financial advisor at Emparion. “The bond will mature in 20 years, at which point the U.S. Treasury will guarantee that investors’ money has doubled.”
If you have a Series EE Savings Bond, it’s beneficial to know its current value before you decide to cash it out, as in some cases you can earn more interest by waiting longer.
How to determine the present value of a savings bond
Information you need to know
You can determine the value of your paper savings bond by using the Savings Bond Calculator on the TreasuryDirect website and entering the following information from the bond:
- Publication date
- Kizuna series
- sect
paper savings bonds
Although the U.S. Treasury stopped issuing most paper savings bonds in 2012 (except for taxpayers who use a portion of their tax refunds to purchase paper bonds), the bonds have no expiry date and no redemption date. At maturity, interest will stop accruing. Once you enter this information, the calculator will tell you what your paper bond would be worth if you cashed it out today. You can also use the calculator to determine the value of your bond if you plan to convert it into cash at a future date. The TreasuryDirect website also allows you to enter information for multiple bonds to create a list and determine the total amount.
electronic savings bonds
Currently, most savings bonds can only be purchased in electronic format. If you have electronic bonds, you can view the value of your account information under the (Current Holdings) tab by logging into the TreasuryDirect account that was originally used to purchase the bond.
What will my savings bond be worth in 30 years?
Below is an example of today’s value for a Series EE U.S. Savings Bond purchased in October 1994. EE bonds are guaranteed to double in value after 20 years.
sect | Publication date | Issue price | total interest | value |
100 dollars | October 1994 | $50 | $114.12 | $164.12 |
$1,000 | October 1994 | 500 dollars | $1,141.20 | $1,641.20 |
$10,000 | October 1994 | $5,000 | $11,412.00 | $16,412.00 |
How to turn savings bonds into cash
If you decide to cash out your Series EE Savings Bonds, the process is very simple.
- Electronic savings bonds: If you purchase bonds through TreasuryDirect, you can cash them out on their website. Once you log into your account, you will see information regarding bond redemptions. Your money will be deposited directly into your checking or savings account within two business days.
- Paper savings bonds: If your bank converts paper savings bonds into cash, you can take them to a branch to redeem them. Paper bonds can also be turned into cash by sending them along with FS Form 1522 to Treasury Retail Securities Services.
Early redemption of bonds
Series EE Savings Bonds can be redeemed within one year of purchase, but you won’t receive the same level of return if you cash out the bond before it matures in 20 years. Bondholders can receive a deposit of twice the face value only if they hold the bond to maturity.
“The Treasury will only waive the one-year rule if there is a disaster and the funds need to be utilized sooner,” says financial advisor Sundin.
Additionally, if the bond is redeemed before the fifth year, the final three months of interest will expire, which can significantly reduce the total value of the savings bond. For this reason, Sundin cautions against buying savings bonds unless you have a specific purpose for your portfolio.
Another feature of Series EE Savings Bonds is the ability to hold the bond beyond its maturity date. Because bondholders continue to receive interest for up to 30 years, the value of a bond increases the longer it is held.
conclusion
Series EE Savings Bonds mature after 20 years and continue to earn interest for an additional 10 years. Therefore, holding a bond for 30 years is the way to collect the most interest. Whether you have paper savings bonds or electronic savings bonds, you can easily check the value of your savings bonds using the federal government’s TreasuryDirect website.