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E BONDS
| EE BONDS | I BONDS | HH BONDS | OLDER BONDS
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Denominations Available: $50 , $75 , $100 ,
$200 , $500 , $1,000 , $5,000 and $10,000.
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Issued: January 1980 to present.
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Purchased for 1/2 of face value. An
Example: a $100 bond in the past would have cost $50 at the time of purchasing it.
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EE Bonds will earn interest for
30 years from issue date.
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Series EE bonds are issued only in registered
physical form and are not transferable.
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There
is a 3 month penalty for cashing in an EE Bond before it is five years old. |
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You can purchase up to $5,000 worth of EE Bonds annually (each calendar year). NOTE: You can purchase up to $5,000 in I Bonds as well, totaling $10,000 max annually in paper bonds as of January 1, 2008. An individual may also purchase $5,000 in ELECTRONIC EE Bonds as well as an additional $5,000 in ELECTRONIC I bonds; for a grand total of $20,000 in savings bonds per calendar year. This number is down from the limit of $60,000, prior to January 1, 2008.
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 Interest rate:
Series EE bonds are accrual bonds, whose price on original issue is
half of the face amount. Because of the many different rules and regulations on bonds depending on their issue dates, please see the grid in our MATURITY section which specifies the interest rules for bonds based on their issue date.
Visit our rates page for the current interest
rates.
| Notice: EE Savings Bond Interest Rate Rule Change - EFFECTIVE May 1st, 2005 - will now earn a fixed rate of interest from issue. Keep in mind that bonds issued prior to May 1st, 2005 do NOT apply this change. Read more here... |
 History:
Series EE bonds were originally offered on July 1, 1980,
to replace Series E bonds, which were withdrawn from sale.
Redemption or exchange:
A Series EE bond cannot be
redeemed (cashed-in) until 12 months** after its issue date and can be redeemed at any time thereafter.
** The minimum holding period for Series EE and Series I bonds has been extended from 6 months to 12 months, effective Feb 2003.
| Notice: August 31st, 2004 was the
last issue date for HH/H Bonds. After August 31, 2004, the government discontinued the exchange of bonds for HH/H bonds.
Current holders of HH/H Bonds will not need to do anything different than they normally would have.
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Series EE bonds could have been exchanged for Series HH bonds, and the income tax
deferred for up to 30 more years.
Maturity:
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.
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Bonds Issued November 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.
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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.
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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.
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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.
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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.
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Federal income tax:
Series EE 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.
A 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 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.
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