No. But “people are under the misconception that savings bonds earn interest as long as they hold them,” says Dan Pederson of the Savings Bond Informer, a bond consulting service.

Americans sitting on bonds that have stopped earning interest are making an interest-free loan to the U.S. government to the tune of $9 billion.

If you’ve got savings bonds and aren’t sure whether they still are earning interest, the Bureau of Public Debt’s Treasury Hunt database can help you find out.

EE bonds earn interest for 30 years. Bonds issued after May 2003 are guaranteed to double in value within 20 years, which is referred to as the original maturity date. The new fixed rate for bonds issued after May 1, 2005, applies to those first 20 years then is extended for the next ten years unless the Treasury Department announces a different rate.

I bonds earn interest for 30 years. The interest accumulates monthly and is compounded every six months.

HH bonds stop earning interest at 20 years. The interest rate is set when you buy them then again at ten years after the issue date.

Keywords: Interest, Cash, Savings, Bonds, Treasury, Public, Earn

Filed under: Cash Savings Bonds Article by admin