See what your savings bonds are worth

February 23rd, 2010 • Related • Filed Under
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Savers like to buy and give savings bonds because they’re a fairly safe investment that can offer tax benefits. However, because they’re held for such long periods of time, savings bonds can cause confusion over what they’re worth and when they can be redeemed for the face value – or more.

Fortunately, you can determine how much your bonds are worth without too much trouble.

First, find out what type of bonds you have.

  • Series EE bonds replaced the Series E bonds and are purchased for half their face value. EE bonds increase in value over 30 years. If you cash them before that time, you’ll receive interest, but less than the full face value.
  • Series I bonds are sold at face value and grow with inflation-indexed earnings for up to 30 years.
  • Series HH bonds can be purchased only in exchange for a Series E or EE bond, or with the money from a mature Series HH bond. They are purchased at their face value, do not increase in value, and have a maturity of 20 years.

Check the issue date near the top right corner of each bond. Savings bonds cannot be redeemed at all within the first year of issuance, and there’s an early redemption penalty if the bonds are redeemed within the first five years.

If you think you may be ready to cash in your bonds, be aware that timing matters and the U.S. Treasury takes different approaches to calculating interest depending on when the bonds were purchased. In some cases, interest is added on the first day of each six-month period, so it pays to know what those periods are.

The quickest way to calculate the interest earned on your savings bonds is to use the Savings Bond Calculator, found at on the TreasuryDirect web site, www.treasurydirect.gov/indiv/tools/tools_savingsbondcalc.htm.

If you do not have computer access, your local library or your financial institution may be able to assist you. You may also call the U.S. Treasury at 1-800-722-2678 or write to Bureau of the Public Debt, Division of Customer Assistance, P.O. Box 7015, Parkersburg, WV 26106-7015.

If you know of lost, stolen or destroyed bonds, you can use the Treasury Hunt® service. You will be asked for dates of purchase, names on the bonds and other information. See www.treasurydirect.gov/indiv/tools/tools_treasuryhunt.htm.

As with any investment, knowledge pays. Take the extra time to find out what your bonds are worth, and you won’t lose out on the interest you are owed.

More information

The following savings bonds no longer earn interest, according to TreasuryDirect.gov:

  • Series E: May 1941 through January 1980
  • Series EE: January 1980
  • Series H: All issues
  • Series HH: January 1980 through January 1990
  • Savings Notes: All issues
  • A, B, C, D, F, G, J, K: All issues

How long bonds earn interest based on issue date, according to TreasuryDirect.gov:

Series E

May 1941- November 1965: 40 years
December 1965 – June 1980: 30 years

Series EE

All issues: 30 years

Series H

June 1952- January 1957: 29 years, 8 months

February 1957- December 1979: 30 years

Series HH

All issues: 20 years

Series I

All issues: 30 years

Savings Notes

All issues: 30 years

Copyright 2010, Financial Marketing Corporation

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