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| SAVINGS BOND NEWS: Rule Change for EE Savings Bonds |
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The U.S. Treasury Department has announced...
that Series EE Bonds issued on and after May 1st, 2005 will now earn a fixed rate of interest. Jack Quinn, CEO of SavingsBonds.com - the leading non-governmental information web site about savings bonds - says, "This is not a good thing."
New Fixed Rate for 20 Years
The Treasury Department stated that the new fixed rate will apply for the first 20 years of each bond. After 20 years, the bond is guaranteed to be worth its face value and will
automatically go into a ten-year extension period, at which time the government reserves the right to make changes at their discretion. Currently, EE Bond interest rates fluctuate with market conditions
every six months. EE bonds will still earn tax-deferred interest for a total of 30 years.
Quinn explains, "Once you get your fixed rate, you're stuck. Considering interest rates are continuing to climb and the cost of living is increasing, the percentage rate is pale and
may no longer reflect market conditions on an on-going basis. This has the potential to be a terrible situation should interest rates continue to rise."
Find out your Savings Bonds interest rates
In anticipation of the announcement, the SavingsBonds.com website has added a new feature that enables consumers to enter their ZIP Code and receive
contact information for the Financial Professional closest to their area who offers savings bond educational seminar and can provide you with a complimentary
Savings Bond Performance Report ™. Visit the SavingsBonds.com home page at http://www.SavingsBonds.com to search YOUR AREA!
Six Different Interest Rules
"With all the confusion created by having six different rules for computing interest rates for savings bonds - in addition to the elimination of the
attractive tax-deferred HH bonds in August 2004 - savings bond owners have many questions. The Financial Professionals found using our Savings Bond Planner Search have the tools
and the resources to help investors decipher exactly how their bonds are performing," Quinn says.
Have a topic you would like to see as a tip? Write to
info@savingsbonds.com
We'll be bonding again soon.
Jackie Brahney - Savings Bond Consultant
SavingsBonds.com Inc - www.SavingsBonds.com
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