What is accrued interest? How is the accrued interest calculated if I redeem my Savings Bond before it matures?

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Accepted Answer

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 March to redeem the full $1,000 of your January bond, you will receive the following 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.

When can I apply to redeem my Savings Bonds? Will I lose money if I redeem before it matures?