Should I cash out my I Bonds?

The decision to cash out your I Bonds depends on your current financial situation, the bond's specific interest rates, and alternative investment opportunities. It is not a one-size-fits-all answer.

When should I cash out I bond?

You can cash in (redeem) your I bond after 12 months. However, if you cash in the bond in less than 5 years, you lose the last 3 months of interest. For example, if you cash in the bond after 18 months, you get the first 15 months of interest.

Should I get rid of my I bonds?

If you bought at COVID 8% adjustable, then your base rate is close to Zero. You should DEFINITELY sell your older I-bonds, and if you want to keep I-bonds, lock in 1.2% plus the inflation variable. Almost all folk did this. The maths are you shall make back the lost-3-month-interest in about 1year of locked holding.

How much is a $100 bond worth after 30 years?

A $100 U.S. Savings Bond (Series EE) purchased in October 1994 would be worth approximately $164.12 after 30 years, as these bonds stop earning interest at their 30-year final maturity, but you can find the exact value for any bond using the U.S. Treasury's Savings Bond Calculator by entering its series, denomination, and issue date. 

Do you pay taxes on I bonds when you cash them out?

Taxes when you are the bond owner

They can pay federal income tax each year on the interest earned or defer the tax bill to the end. Most people choose the latter. They report the interest income on their Form 1040 for the year the bonds mature (generally, 30 years) or when they're cashed in, whichever comes first.

The Essential Guide to Knowing When to Cash Out I Bonds

What is the downside of an I bond?

Cons: Rates are variable, a lockup period and early withdrawal penalty apply, and there's a limit to how much you can invest. Availability: I bonds can be purchased only through taxable accounts, not in IRAs or 401(k)s.

How can I cash a bond without paying taxes?

You can cash U.S. Series EE or I savings bonds without paying federal income tax on the interest if you use the funds for qualified higher education expenses for yourself, your spouse, or a dependent, provided you meet income and age requirements (owner must be 24+) and file as 'Married Filing Jointly' or Single, not 'Married Filing Separately'. Alternatively, you can roll the proceeds into a 529 plan, or defer taxes until maturity, but using for education offers the best tax avoidance. 

Why is my $100 savings bond only worth $50?

There are two primary reasons a bond might be worth less than its listed face value. A savings bond, for example, is sold at a discount to its face value and steadily appreciates in price as the bond approaches its maturity date. Upon maturity, the bond is redeemed for the full face value.

What is the current interest rate for Ibonds?

The current composite interest rate for new Series I Savings Bonds issued from November 2025 through April 2026 is 4.03%, consisting of a 0.90% fixed rate and a 3.12% annualized inflation rate, which adjust every six months, according to TreasuryDirect. The Wall Street Journal notes this rate is a combination of a fixed portion and a variable inflation-linked portion, with new rates announced twice a year by the U.S. Treasury. 

What are the tax implications of TreasuryDirect?

What you earn from your Treasury marketable securities is subject to federal tax but is exempt from state and local taxes. This includes: interest you earn on notes, bonds, TIPS, and FRNs. Bill "interest" (the difference between the price you pay and the face value you get when the bill matures)

Why does Dave Ramsey not invest in bonds?

For starters, I don't buy bonds. Bonds are frequently pitched in the financial world as being much safer than the stock market, but actual data shows they're not that much safer. The bond market, in general, is almost as volatile as the stock market because of the way bond values respond to shifting interest rates.

What does Warren Buffett say about bonds?

Buffett argues that stocks will continue to provide higher returns over the long run than bonds or cash. Invest the remaining 10% in short-term government bonds such as U.S. Treasury bills. This ensures liquidity (your ability to buy or sell with relative ease) while reducing your overall risk in market downturns.

Is it worth keeping ibonds?

I Bonds offer a secure way to protect savings from inflation while earning a modest return. They may be particularly appealing to those seeking safety and government backing, as well as tax advantages. However, purchase limits, early withdrawal penalties and a long maturity period may make them less attractive to some.

Should I cash in IBond?

When to cash in savings bonds: Series EE Savings Bonds should ideally be cashed in after 20 years, when they are guaranteed to double in value, or by 30 years, when they stop accruing interest.

What is the new I bond rate in 2026?

The composite rate for I bonds issued from November 2025 through April 2026 is 4.03%.

Which bond is paying 7.5% interest?

Belong Limited 7.5% Social Bonds due 2030. The Belong Limited 7.5% Social Bonds due 2030 will pay a fixed rate of interest of 7.5% per annum, payable twice yearly on 7 January and 7 July of each year. The Bonds are expected to mature on 7 July 2030 with a final legal maturity on 7 July 2032.

What is the best time to cash out an I Bond?

Best time to redeem: To maximize your interest earnings, consider redeeming on the first business day of the month. I Bonds accrue interest for the previous month on this day, and you won't be penalized for missing out on a full month of interest as you would if you redeem at month's end.

What bonds are paying 9% interest?

Government Savings Bonds (I Bonds) Are Paying A 9.62% Interest Rate. There are U.S. Government Savings Bonds, called “I Bonds”, that are currently paying a 9.62% interest rate as of August 2022, you can continue to buy the bonds at that interest rate until October 2022, and then the rate resets.

How much is a $1000 savings bond worth after 30 years?

A $1,000 face value savings bond (like a Series EE) issued around 1994 is worth approximately $1,641 after 30 years, as it stops earning interest at 30 years and reaches its final value, but the exact amount depends on the specific issue date and interest rates of that period, requiring a TreasuryDirect Savings Bond Calculator for precise figures. 

Are savings bonds better than CDs?

Interest Rates and Returns: Bonds often have higher interest rates than CDs. Liquidity and Access to Funds: CDs typically incur penalties for early withdrawals, while bonds can be sold before maturity without penalty; however, you may incur a loss if the price of the bond is below the purchase price.

Do savings bonds double every 10 years?

Series EE savings bonds are a low-risk way to save money. They earn interest regularly for 30 years (or until you cash them if you do that before 30 years). For EE bonds you buy now, we guarantee that the bond will double in value in 20 years, even if we have to add money at 20 years to make that happen.

How to cash a savings bond over $1000?

(If the value of the bond(s) you are cashing is more than $1,000, you must have your signature certified. See FS Form 1522 for more about the signature requirements.) Send the form and the bonds to us at the address on FS Form 1522.

Can I have taxes withheld when cashing i-bonds?

U.S. Retirement Plan or U.S. Individual Retirement Bonds

The redemption proceeds of United States Retirement Plan Bonds or Individual Retirement Bonds you have submitted for redemption are subject to Federal income tax withholding unless you elect not to have withholding apply.

Are iBonds better than savings accounts?

Bonds are best for long-term savings, while savings accounts are a better fit for short-term savings. Here are common examples to help you decide between bonds vs. savings accounts.

How long do you have to hold an I bond?

You must hold an I Bond for at least 12 months, but if you cash it in before 5 years, you forfeit the last 3 months of interest; after 5 years, there's no penalty, and the bond earns interest for up to 30 years total. The longer you hold it (up to 30 years), the more interest it accrues, with rates resetting every six months based on inflation, notes TreasuryDirect and MOAA.