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Series EE Savings Bonds

Current Interest Rate for EE Bonds purchased May 1, 2014 to Oct 31, 2014: 0.50%


History of the EE Savings Bond

Series EE Savings Bonds were originally offered on July 1, 1980, to replace Series E Savings Bonds, which were withdrawn from sale. EE Savings Bonds are reliable, low-risk government-backed savings products that you can use toward financing education, supplemental retirement income, birthday and graduation gifts, and other special events.

Buying Paper Series EE Savings Bonds

EFFECTIVE: 1/1/2012  You can no longer purchase paper EE Savings Bonds at a local bank, financial institution or credit union. As of 1/1/2012, the Treasury Department started issuing electronic savings bonds only. Note: The Treasury Dept. will still issue paper savings bonds if you are Replacing Lost Bonds or Changing a Beneficiary/Co-Owner Name. See the current savings bond rates for bonds available for purchase.

Buying Electronic Series EE Savings Bonds

Purchased in amounts of $25 or more (examples: $50, $75, $100, $200, $500, $1,000 and $5,000). Electronic Series EE Savings Bonds are purchased at face value. For example: A face-value $100 electronic EE bond is purchased for $100.

The minimum purchase of an electronic EE Savings Bond is $25; The maximum purchase of electronic EE Savings Bonds annually, per calendar year, is $10,000.

Maturity Rules for Series EE Savings Bonds

Series EE bonds have many different rules depending on the time period in which they were purchased. Please note the following for bonds issued in the respective periods:

Bonds issued before November 1982
These bonds, earning interest for up to 30 years, are earning interest at either guaranteed or at market-based rates, whichever produces the higher redemption value.
Bonds Issued Nov. 1982 Through February 1993
These bonds begin earning interest on a fixed graduated scale that starts at 4.16% at six months and increases during the first five years to reach a guaranteed minimum rate at five years. Bonds with issue dates of November 1986 through February 1993 have a guaranteed minimum rate of 6% per year, compounded semiannually, for their 12-year original maturity period. Bonds with issue dates of November 1982 through October 1986 have a guaranteed minimum rate of 7.5% per year, compounded semiannually, for their 10-year original maturity period. These bonds are eligible for market-based rates once they're held for five years.
Bonds Issued March 1993 through April 1995
Bonds with issue dates of March 1993 through April 1995 have a guaranteed minimum rate of 4% per year, compounded semiannually. These bonds have an original maturity period of 18 years. Once they've been held for five years, they become eligible for market-based rates.
Bonds Bought May 1995 Through April 1997
Series EE Savings Bonds issued May 1, 1995 through April 30, 1997, earn interest based on market yields for Treasury securities. Each May 1 and November 1, Treasury announces two Savings Bond rates. The Short-Term Rate is applied to bonds for the first five years they are held. The Long-Term Rate is applied to bonds from five years through 17 years. Bonds will continue to earn interest from 17 years through 30 years at the rates then in effect.
Bonds Bought May 1997 Through April 2005
Bonds bought May 1997 through April 2005 will earn interest based on 5-year Treasury security yields right from the start. The new rate for EE bonds will be 90% of the average yields on 5-year Treasury securities for the preceding six months; will increase in value every month instead of every six months. Interest is compounded semiannually. These bonds earn interest for 30 years.
Bonds Bought May 2005 and After (**ACTIVE**)
Series EE Savings Bonds issue dated on or after May 1, 2005 will earn a fixed rate of interest for 20 years, at which time the bond should have reached it's face value. If the bond has not reached it's face value, the Treasury will make a one time adjustment up to the face value. These EE bonds will increase in value every month instead of every six months. Interest is compounded semiannually. After the initial 20 yr period and additional 10 year extension and rate update will be initiated, for a total of 30 years of interest earning.

All EE Savings Bonds post their final maturity interest on the first day of the final maturity month.

Maturity Periods

The Treasury Department guarantees that new issues of Series EE Savings Bonds will double in value by 20 years from the issue date. This is referred to as the original maturity date. The following chart shows the original term for Series EE Savings Bonds:

Issue DateOriginal Term
01/80 - 10/8011 years
11/80 - 04/819 years
05/81 - 10/828 years
11/82 - 10/8610 years
11/86 - 02/9312 years
03/93 - 04/9518 years
05/95 - 05/0317 years
06/03 - present20 years

Cashing in a Series EE Savings Bond

EE Savings Bonds must be at least 1 year old before they are eligible for cash-in.

There is a 3 month penalty for cashing in an EE Bond before it is five years old. For example, if you buy a bond and redeem it 24 months later, you'll get back your original investment and 21 months of interest. The value of the bonds would be based on the announced rates applied over the initial 21-month period.

Only in times of a Federal Disaster being declared, can a Savings Bond be cashed-in before 1 year.

To cash-in an EE Savings Bond, simply bring it down to your local bank. Be sure to call first, some banks do not handle the cashing in of US Savings Bonds.

MAKE SURE YOU KNOW WHAT YOUR BONDS ARE WORTH BEFORE CASHING IN! Savingsbonds.com has saved Savings Bond investors like yourself hundreds of dollars at cash-in because the bank calculated the wrong value for their bonds. Use our Savings Bond Calculator to find out exactly what your bonds are worth before you cash them in!

Interest Rate Calculations

Series EE Savings Bond rates are set every May 1st and November 1st, with each new rate effective for all bonds issued in the six months following the adjustment.

The Department of the Treasury sets the fixed rate for Series EE Savings Bonds administratively. The rate is based on 10-year Treasury note yields and adjusted for features unique to savings bonds, such as the tax deferral feature and the option to redeem the savings bonds at any time after the initial holding period.

EE Savings Bonds purchased today increase in value every month rather than every six month. Interest is compounded semiannually.

Series EE Savings Bonds purchased on or after May 1, 2005, earn a fixed rate of return which is set at their purchase.

Interest is posted on the 1st of the month.

See the chart above in the Maturity Rules section for your bond's maturity information.

MAKE SURE YOU KNOW WHEN YOUR BONDS STOP EARNING INTEREST! Savingsbonds.com has saved Savings Bond investors like yourself hundreds of dollars because the bank calculated the wrong value for their bonds. Use our Savings Bond Calculator to find out exactly what your bonds are worth before you cash them in!

EE Bond Calculator - Current Values of EE Savings Bonds Online 

Looking for values of US Savings Bonds? Use our Savings Bond Calculator to value your savings bonds online right now. It's free and helpful!

H/HH Bond Roll-over

H/HH Savings Bonds are no longer issued. On August 31, 2004, the government discontinued the exchange of HH/H Savings Bonds for EE Savings Bonds.

Current holders of HH/H Bonds will not need to do anything different than they normally would have.

Who can Own EE Savings Bonds?

Individuals, corporations, associations, public or private organizations, and fiduciaries can own paper Series EE/E Bonds.

You can own U.S. Savings Bonds if you have a Social Security Number and you're a:

  • Resident of the United States.
  • Citizen of the United States living abroad (must have U.S. address of record).
  • Civilian employee of the United States regardless of residence.
  • Minor. Unlike other securities, minors may own U.S. Savings Bonds.

Tax Rules and Advantages

Series EE Savings Bond interest earnings are reportable for Federal income tax purposes for the year in which the bonds are redeemed. Alternatively, the bond owner can elect to report interest each year as it accrues; however, such an election must apply to all of the owner's accrual-type securities.

IRS Publication 550 states if a Series EE Savings Bond has come to final maturity, the interest earned by that bond should be reported in the year it came to final maturity. When possible, a Federal Tax Return should be amended, within the 3-year statute of limitations on amendments to Federal Tax returns, to report such interest. If this cannot be done, the bond should be cashed in and the interest reported for the year it is cashed. Read more about Reporting of Savings Bond Interest.

Interest earned on your Series EE Savings Bonds is exempt from state and local taxes.

Using Savings Bonds Tax-Free for Education

An EE Savings Bond owner or co-owner may be able to exclude from income for Federal income tax purposes all or part of the earnings received on the redemption of qualified Savings Bonds (including Series EE Savings Bonds) during the year, if that owner or co-owner paid qualified higher education expenses during the same year and certain other conditions are satisfied. This exclusion is known as the Education Savings Bond Program. You may want to consult a tax advisor to determine your eligibility for the Education Savings Bond Program.

Read more about Savings Bonds for Educational Purposes on our Tax-Free Savings Bonds for Education page.

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