Q:

How long does it take for a savings bond to mature?

A:

Quick Answer

The time it takes for a savings bond to mature is completely based on the bond issued, so owners of a savings bond need to check the "issued to" date on the bond to see when it will mature. The time a bond takes to mature is the difference in time between its "issued from" date to its "issued to" date.

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Full Answer

Depending on the condition of the bond, a savings bond may enter into a period of extension after it matures. This is generally a 10-year period in which the bond continues to accrue interest. Although certain bonds can continue to gain interest many years after the extension period, a bond will never earn interest for more than 40 years from the issued date.

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Related Questions

  • Q:

    How do you buy savings bonds?

    A:

    To buy savings bonds, individuals can create an online account with the U.S. Department of Treasury to purchase, manage and monitor savings bonds online. In order to purchase savings bonds, individuals must be a U.S. citizen, U.S. resident or civilian employee in the United States.

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  • Q:

    How do savings bonds work?

    A:

    Modern U. S. savings bonds are essentially a loan from purchasers to the U. S. government. They are purchased online at face value through the U. S. Department of the Treasury and accrue annual interest for up to 30 years until they are cashed in. Bonds may be cashed in as soon as six months after purchase, but bonds cashed in early are penalized the last three months' worth of interest.

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  • Q:

    How do you cash in savings bonds?

    A:

    The easiest way to cash a paper U.S. savings bond is to take it to almost any bank. Contact the bank first to determine if the branch can cash the bond and what identification or documentation is required. Electronic bonds are cashed by logging in to the TreasuryDirect website and following the directions provided. Payment is credited to the bondholder's bank account within two days.

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  • Q:

    When do savings bonds mature?

    A:

    Savings bonds mature at the end of the loan period, which has a limit of 30 years, according to the U.S. Department of Treasury. Investors are also able to redeem the bond's face value plus any earned interest 12 months after purchase.

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