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Where are your savings bonds? In a safe deposit box or file drawer?

The value of savings bonds held by investors earning ZERO interest is estimated at $5.9 billion and could grow to $7 billion as we approach a time period where 30 and 40 year bonds cease to earn interest. It’s wise for investors to dig out those long-forgotten bonds and do some homework.

Any bond that is more than 40 years old has reached final maturity and is no longer earning interest as have many 30 year old bonds. If you have any 30 or 40 year old bonds that have reached final maturity it’s a good idea to figure their worth before going off to redeem them.

Savings bond owners don’t owe state or local taxes on interest earned but federal income tax will have to be paid. Bond holders may avoid being bumped into a higher tax bracket by spreading out their redemptions over two or more years.



Source: Many savings bonds reaching final maturity. (1999, August). Consumer and Family Economics Specialist "In Touch" Newsletter, 4.





Written by:
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension

Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension











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Last update: Monday, July 28, 2008




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