How to report us savings bond series ee interest, without. Why you should invest in series i savings bonds bonds us news. Savings bonds calculator series ee savings bonds faq. Unless the original owner has previously reported as income some of the interest payable prior to time of death, you will be liable for taxation on the entire amount of accumulated interest. Savings bonds issued after 1989, including recent updates, related forms, and instructions on how to file. The interest is issued electronically to your designated account. The rate for new bonds is announced by the treasury each year on may 1 and november 1. The interest earned on series ee us savings bonds issued after december 31, 1989 and all series i bonds may be tax free when the bonds are redeemed to pay for qualified higher education expenses or rolled over into section 529 college savings plans, prepaid tuition plans or coverdell education savings accounts. Savings bonds, specifically ee e series bonds, were created as a longterm investment allowing individuals to save in a reliable, lowrisk fashion.
Intro to series ee savings bonds investing the balance. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds. Mar 29, 2019 the us treasury produces two types of savings bonds. To further explain, the bonds value is a combination of the original purchase price plus the accumulated and. Savings bonds issued after 1989 frequently asked questions faq interest, dividends, other types of income. Theyre government backed, and they provide a guaranteed return. Series ee savings bonds are lowrisk savings products that pay interest until they reach 30 years or you cash them, whichever comes first. If you have a newborn child, the series ee moneydoubling trick could be a useful tool to save for higher education expenses.
Unlike ee bonds, however, i bonds are issued at face value. If its a series ee or series i bond, then it matures 30 years after the issue date. There are two kinds of savings bonds available today. Treasurys ee bonds issued in 1981 and 1982 only took eight years to reach full face value, while the same ee bonds issued in 2020 take 20 years to reach their full face value. I cashed some series e, series ee, and series i savings bonds. Learn about series ee savings bonds, issued by the u. They were initially issued in 1980 to replace the series e bonds and have undergone many changes over the past thirty years. May 01, 2018 a the best way to search for old savings bonds is to fill out form 1048, claim for lost, stolen or destroyed u. The series ee bond is a nonmarketable, interestbearing u. Savings bonds, specifically eee series bonds, were created as a longterm investment allowing individuals to save in a reliable, lowrisk fashion. Interest is added to an ee bond monthly and paid when you cash the bond. According to the treasury department, there are billions of dollars in savings bonds that have matured but havent been cashed in. A the best way to search for old savings bonds is to fill out form 1048, claim for lost, stolen or destroyed u.
Savings bonds, with as much information as possible. Use form 8815 to figure the amount of any interest you may exclude. Series ee bonds are government savings bonds issued by the u. Savings bonds the betterknown series ee bond is a direct descendant of the series e savings bond. Savings bonds are an appreciationtype or accrualtype savings security.
Apr 03, 2019 series ee bonds are government savings bonds issued by the u. Here is a new investors guide to series ee savings bonds. Information about form 8815, exclusion of interest from series ee and i u. Series ee bonds, sometimes called patriot bonds after 2001, differ from series i because they are guaranteed to double in value after 20 years. Electronic series ee savings bonds series ee savings bonds work differently depending upon whether you own electronic ee savings bonds or paper series ee savings bonds. Features include current interest rate, next accrual. If you purchase an ee savings bond in a large denomination and keep it until maturity, it can be an excellent way to invest and save for the future. Ee bonds bought from may 1997 through april 2005 earn a rate of interest that changes every six. Ee bonds purchased between may 1997 and april 30, 2005, earn a variable rate of interest. While these bonds may not always provide much in the way of growth the current interest rate for series ee bonds is a paltry 0. Savings bonds earn interest for 30 years, but rates are relatively low. Potential returns currently, savings bonds provide a tiny return series ee bonds issued from nov. May 01, 2020 series ee bonds issued may 2005 and after earn a fixed rate of interest. The original series e was known as the war bond and helped finance the american.
Ee bonds earn interest until they reach 30 years or until you cash them, whichever comes first. Individual cashing redeeming ee and e savings bonds. Nov 17, 2018 savings bonds have long been a popular tool for investorsmore than 55 million people own them. Ee bonds purchased before may 2005 have variable interest rates. Now you may only obtain series ee bonds by purchasing them electronically at treasurydirect. Next, you defer taxes on earned interest until the bonds mature or are redeemed. Some series ee bonds have total interestpaying lives that extend beyond the original maturity date, up to 30 years from issuance. The calculator will price series ee, series e, and series i savings bonds, and savings notes.
Theres no point in holding on to them and giving the government an interestfree loan. Paper series ee bonds were sold at half their face value. Sep 24, 2019 series ee bonds dated may 2005 and after earn a fixed rate of interest. Series ee savings bonds and series i savings bonds will continue earning interest for up to 30 years, while series hh savings bonds earn interest for 20 years. If your paper bond was lost, stolen, or destroyed, you can request that the treasury department. In general, paper savings bonds are no longer issued. Savings bonds have long been a popular gift for children as a means of helping college savings. Series i savings bonds are a good choice to protect your cash from inflation. How to cash in series ee savings bonds depositaccounts.
If you turn 24 on june 18, 2009, and you purchase a bond on. Calculate the value of your paper savings bonds treasurydirect. The only way to buy ee bonds is to buy them in electronic form in treasurydirect. Maturity dates for series ee bonds the savings bonds work as zerocoupon bonds in which bond coupons, or interest payments, are added to the bonds principal value rather than paid out periodically. Series ee and series i bonds cease paying interest after 30 years. Mar 08, 2020 savings bonds come in two varieties, series ee and series i. If you turn 24 on june 18, 2009, and you purchase a bond on june 19, 2009 so you really and truly are 24 years old, the issue date is. What you must know about taxation of ee series bonds ed. The secret of series ee savings bonds maestro wealth. Ee bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. How to report us savings bond series ee interest, without 1099int form. According to ashley dixon, a certified financial planner with gen y planning, a series ee savings bond is guaranteed to be worth its face or dollar value after 20 years and will earn additional interest for another 10 years. Dear suzanne, series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of.
Treasury announces the rate for new bonds each may 1 and november 1. Neither is a great investment because interest rates are so low. Savings bonds come in two varieties, series ee and series i. About form 8815, exclusion of interest from series ee and. Requirements for using savings bonds for college expenses. The interest earned on series ee us savings bonds issued after december 31, 1989 and all series i bonds may be tax free when the bonds are redeemed to pay for qualified higher education expenses or rolled over into section 529 college savings plans, prepaid tuition. For example, if you cash an ee bond after 18 months, you get the first 15 months of interest. Series ee bonds issued may 2005 and after earn a fixed rate of interest. To save for college taxfree using either series ee or series i savings bonds, the owner needs to be at least 24 years old on the first day of the month when the bond is issued.
First issued in 1980 as a replacement for the series e savings bonds, they have been offered ever since, though the rules applying to the bonds have changed several times. The us treasury produces two types of savings bonds. They mature in 30 years, and the annual interest rate is 0. I acquired us ee savings bonds from a decedents estate. Investors can buy series ee bonds amounts to the penny. Treasury bonds, you may have noticed some series ee savings bonds mature on different dates. They were initially issued in 1980 to replace the series e bonds and have undergone many changes over the. Series e savings bonds issued in 1975 stopped earning interest in 2005 at the bonds final maturity. Form 8815, exclusion of interest from series ee and i u. The secret of series ee savings bonds maestro wealth advisors. How to find out if bonds have been cashed finance zacks.
There are two types of savings bonds offered by the treasury, series ee and series i. Savings bonds calculator series ee savings bonds faq bankrate. About form 8815, exclusion of interest from series ee and i u. Mar 23, 2020 savings bonds have been one of the most popular investments in the united states since 1935. Aug 04, 2017 series ee savings bonds from the united states treasury are available for purchase online at. The purchase date determines the interest rate of these childhood savings bonds. Jan 03, 2020 form 8815, exclusion of interest from series ee and i u. Series ee bonds dated may 2005 and after earn a fixed rate of interest.
Savings bonds have long been a popular tool for investorsmore than 55 million people own them. Form 8815 exclusion of interest from series ee and i u. Savings bonds issued after 1989 frequently asked questions. May 30, 2019 where to buy a series ee savings bonds. Series ee savings bonds earn a fixed rate of interest each month for up to 30 years. If you cash in your series ee bonds after youve held them for six months, youll pay three months worth of interest ouch. Why you should invest in series i savings bonds bonds. At the end of january 2018, treasurydirect reported an astounding 35,994,100 series ee savings bonds were unredeemed and still floating around. Series ee savings bonds issued in the 1980s and early 1990s have an original maturity of 20 years, and an extended maturity of 10 years, for a total of 30 years until the final maturity of the bonds.
The bond isnt worth its face value until it has matured. Savings bonds have been one of the most popular investments in the united states since 1935. You can find the issue date right under the series name, on the upper right corner of the bond. In the past, you could purchase paper bonds from just about any credit union or bank.
How to cash in savings bonds its easier than you think. How to report the sale of us savings bond to the irs. First issued in 1941, series e savings bonds were once the worlds most widely held security, according to the treasury which discontinued series e bonds in 1980, and replaced them with series ee savings bonds. But if you cash them before 5 years, you lose the last 3 months interest. Disadvantages of savings bonds include the fact that you. Check or calculate the value of a savings bond online the balance. But both come with kickers that make them super deals. Dec 26, 2018 series i savings bonds are a good choice to protect your cash from inflation. May 01, 2020 ee bonds we sell today earn the same rate of interest a fixed rate for up to 30 years. Series ee savings bonds often called ee bonds are government savings bonds issued by the u. How long does it take for series ee bonds to mature. How to check if a bond has been cashed pocketsense.