What's the best time to cash in savings bonds?
I recall reading about the importance of timing when you cash in
savings bonds -- i.e. time of month you purchased them and time
you cash them in. The timing makes a big difference in your interest
as I recall, but now I can't find the article and hope you can help
There is an art to cashing in your savings bonds, but it's not a
lost art. In fact, the Bureau
of Public Debt will help you determine the best time to cash
those bonds. I got the following facts from that Web site.
If you cash in a Series EE bond before it is five
years old, you'll give up its last three months of interest.
Savings bonds issued prior to May 1, 1997, generally
earn interest every six months. You want to cash in bonds with semiannual
interest payments just after the interest payment date. If you cash
in the bond prior to its interest payment date, you won't receive
any interest income for the time held since the last interest payment
It's a good idea to cash or exchange bonds early in
the month in which they increase in value or pay interest because
interest accrues and is paid on the first day of that month. (Regardless
of what day you bought the bond originally.)
See the Bureau of Public Debt's page, When
Your Savings Bonds Increase in Value, for more information on
redemption for Series EE/E savings bonds along with some links to
Series I and Series HH information.