Dear Liz: I have savings bonds that have achieved full face value. What should I do? Keep them indefinitely or cash them in to fund my Roth account or what? Am I correct that once they have matured, there’s no more money to be made off them?
Answer: You are correct. Once savings bonds have matured and stopped earning interest, they should be redeemed and the money put to work elsewhere. EE, H and I bonds mature in 30 years, while HH bonds mature in 20 years. You can find more information at TreasureDirect.gov.
Funding a Roth is a great idea for deploying these funds. Other good uses are paying off high-rate debt or building an emergency fund.