Will a Series EE savings Bond pay interest beyond its maturity date?
Upon maturity the Series EE savings bond stops paying interest
which brings up an interesting option for holders of matured
savings bonds. Since the banks are paying close to zero on savings
there is really no financial penalty for holding the Series EE
bonds past the maturity date. In addition, federal tax on the
interest earned on the savings bonds are not due until the bonds
are actually cashed in which gives the holder the flexibility of
shifting income to a particular year. For someone nearing
retirement and holding Series EE bonds which have matured it would
probably make sense to hold off on cashing in the bonds until
retirement when the bond holder would probably have lower income
and thus a lower tax rate.
Related Q&A：
When do series EE savings bonds stop earning interest？Well, let me tell ya. Series EE savings bonds typically stop earning interest 30 years after the issue date. So, if you got one of these bonds, you need to keep track of when it was issued. After that 30-year mark, no more interest is added. But it's important to note that you still have the principal amount and any accumulated interest up to that point. Isn't that something to be aware of? Gotta be on top of these financial matters!
