The interest rate of a savings bond depends on when you purchased the bond. For clarification purposes, we have broken down the rules which applies based on the date issued (which appears on the front of the bond):

MAY 2005 TO PRESENT: EE Bonds will earn interest for up to 30 years. Interest is posted monthly. During the first 20 years, the bond will earn interest at a fixed rate established at the beginning of the period. Bonds issued during this period earn a fixed rate of interest for the first 20 years based on 10-year Treasury note yields. If the bond has not reached its face value by the end of the 20 year period, the government will make a one time adjustment to make the redemption value equal to the face value. The government reserves the right to change the interest rate for the final 10 years of interest bearing life. You may redeem an EE bond any time after it is one year old. You will be penalized the most recent 3 months of interest if you cash in the bond before it is 5 years old.

 

MAY 1997 THROUGH APRIL 2005: EE bonds issued on May 1, 1997, and after, will earn interest based on 90% of the average yields on 5 year Treasury Securities for the preceding six months. The bonds will increase in value every month. The interest is compounded semi-annually and the rate will be posted to the bond for the 6 month earning period. Click here for information on the new Series "I" Bonds

 

MAY 1995 THROUGH APRIL 1997: Bonds will earn interest based on market yields for Treasury Securities, through the original maturity period, or 17 years. Interest is posted to your bonds every six months based on the rates indicated below.

You will earn interest based on short term rates for the first five years of the average of six month Treasury yields, which is determined by the three months prior to May 1 and November 1 of each year.

From the fifth to the seventeenth year, the bond will earn the long term interest rate which is 85% of the average five year Treasury Security yields over the six months prior to May 1 and November 1

 

NOVEMBER 1982 through APRIL 1995: Bonds issued prior to March 1993 are earning guaranteed rates which have increased gradually during the initial five year period of issuance. Bonds issued from March 1993, through April 1995 earn a 4% guaranteed interest rate for the first five years. When this bond goes beyond five years old, it earns interest based on market based investment yields, or guaranteed minimum interest yields. The Treasury will calculate the value of the bond based on these two elements, and give you the best overall return.

 

PRIOR TO NOVEMBER 1982: Bonds issued up to November 30, 1965, earn interest for up to 40 years. Any bonds issued in December 1965, or later, will earn interest for up to 30 years. If the bond (as well as savings notes) are still earning interest, it is based on the guaranteed minimum investment yields, or market based investment yields. The rates are both being calculated by the Treasury, then the best overall return is used.