YOU Magazine - September 2020 - Dealing With Bond Maturation
Follow Me On:          
Subscribe to YOU Magazine and other timely market alerts from Paul and Sarah Scheper.

YOU Magazine
Paul and Sarah Scheper     Paul and Sarah Scheper
Father-Daughter Team
Phone: 800-662-6784
License: NMLS #110538
September 2020

August 2020
July 2020
June 2020
May 2020
April 2020
March 2020

Dealing With Bond Maturation

Dealing With Bond Maturation

What are Savings Bonds? Savings Bonds are essentially vouchers sold by the government to help build federal funds that help individuals earn returns on investments, risk-free. Savings Bonds are sold at a lower price than face value and do not accumulate regular interest, but rather increase in value as they mature until they reach their full face value.

When do EE Savings Bonds fully mature? Savings Bond maturity time depends solely on which series of Bond you choose. Specifically, EE series Bonds sell for half of their face value and do not mature for 20 years. This means they can earn interest during that 20-year time period, and if that doesn't allow the Bond to reach its full value, the government makes good on its risk-free policy and will do a one-time adjustment to bring the Bond up to face value.

Here are the maturity dates of Bonds based on the year they were purchased:
  • Jan–Oct 1980: 11 years
  • Nov 1980–Apr 1981: 9 years
  • May 1981–Oct 1982: 8 years
  • Nov 1982–Oct 1986: 10 years
  • Nov 1986–Feb 1993: 12 years
  • Mar 1993–Apr 1995: 18 years
  • May 1995–May 2003: 17 years
  • After Jun 2003: 20 years
When do these Bonds top out at interest accrual? Something to keep in mind is that EE Bonds need to be owned for at least a year before they can be redeemed, and should not be redeemed before five years. They can be redeemed before five years, but the owner will have to forfeit the last three months' worth of interest as a penalty.

Information current at time of writing.

Source: Investopedia, The Balance

You are receiving a complimentary subscription to YOU Magazine as a result of your ongoing business relationship with Paul and Sarah Scheper. While beneficial to a wide audience, this information is also commercial in nature and it may contain advertising materials.

INVITE A FRIEND to receive YOU Magazine. Please feel free to invite your friends and colleagues to subscribe.

SUBSCRIBE to YOU Magazine. If you received this message from a friend, you can subscribe online.

UNSUBSCRIBE: If you would like to stop receiving emails from Paul and Sarah Scheper, you can easily unsubscribe.

999 Corporate Drive, Suite 100
Ladera Ranch, California 92694

Powered by Platinum Marketing

© Copyright 2024. Vantage Production, LLC.