Accrued interest

Accrued interest is interest that you have earned on your bond since the last interest payment was made. When you redeem part or all of your Savings Bonds in between scheduled interest payments (which occur every 6 months), you will receive accrued interest together with the redemption amount.

For example, suppose you bought $1,000 of Savings Bonds issued in January that is scheduled to make an interest payment of $6 in July.

If you submit a request in June to redeem the full $1,000 of your January bond, you will receive by the end of the 2nd business day of July:

  • Your redemption amount of $1,000; and
  • Your scheduled interest payment of $6.

However, if you decide to redeem in March instead, you will receive by the end of the 2nd business day of April:

  • Your redemption amount of $1,000; and
  • 3 months' worth of accrued interest (Jan to Mar), which is about $3.

The actual amount of accrued interest paid out on each redemption date is calculated as follows:

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