When are savings bonds typically redeemed?

Savings bonds are typically redeemed after a fixed term specified by the issuer. These bonds are designed to encourage saving and to provide a guaranteed return after a predetermined period. In the case of U.S. savings bonds, they earn interest for a specific duration and can generally be redeemed after they have matured, which is when they have reached their full value as guaranteed by the government.

The nature of savings bonds means they are less flexible than other investments regarding when they can be redeemed. While they can be cashed in before maturity, doing so may result in a loss of interest if the bond has not reached a certain age. Therefore, it's important to understand that the fixed term reflects when investors can expect to receive the full benefits of their investment, aligning with the design and purpose of these financial instruments.