Although Savings Bonds may generally be redeemed at any time, are there any redemption restrictions or penalties for early redemption?
Savings Bonds are designed as longer-term investments, and generally cannot be redeemed during the first 12 months after you buy them (unless you live in an area affected by a disaster, such as a flood, fire, hurricane, or tornado). Also, if you redeem a Savings Bond within the first 5 years, the 3 most recent months’ interest will be forfeited. After 5 years, no penalty will apply.
