U.S. Savings Bonds Stop Earning Interest After 30 Years, Leaving Billions Unclaimed
Billions of dollars worth of U.S. savings bonds have stopped earning interest after reaching their final maturity at exactly year 30 from the issue date, with many owners unaware that these matured bonds are no longer generating returns. Series EE and I bonds issued since 1980 and 1998 respectively stop accruing interest after three decades, while older Series HH and E bonds also reached their final maturity in recent years. The U.S. Treasury reports billions of dollars still circulating as unredeemed matured bonds. Owners who inherited these paper savings bonds may face unexpected tax liabilities under IRS rules that require deferred bond interest to be taxed in the year a bond matures, regardless of whether it has been cashed or not. This can result in surprise tax bills for heirs and surviving family members. With current 10-year Treasury yields at 4.79%, matured bonds are losing value over time due to inflation. The issue affects primarily older generations who inherited these bonds from deceased relatives, as the government stopped selling paper savings bonds through banks in 2012. The rules governing bond maturity and taxation are outlined in Treasury regulations (31 CFR Parts 351, 359, and 360) and IRS guidelines.
Topics: Interest Maturity Tax Implications Treasury Department U.S. Savings Bonds