Original maturity is the maximum amount of time it will take a bond to reach face value at the guaranteed interest rate. For example, Series EE bonds purchased between November 1986 and February 1993 have an original maturity of 12 years. After 12 years, your bond will reach its original maturity. Once your series EE bonds reach their final maturity after 30 years, they will stop earning interest. Interest earned on savings bonds is subject to federal taxes, but is exempt from state and local taxes.
Taxes are usually due when the bond is cashed or reaches final maturity.
Cashing in a bond even one day before an interest increase can result in your missing out on six months' worth of interest. Could Be Waiting for You. Inc. All rights reserved.