savings bonds

A Common Savings Bond Myth

Posted on October 31, 2017

There is a major misconception that started decades ago that ALL types of Savings Bonds will reach their face value in 7 years AND will earn the same rate of interest.

Series E Savings Bonds were purchased for 75% of their face value, thus they will get to their “face value” or original maturity, a lot faster than (paper) EE Savings Bonds.

Paper EE Bonds (issued 1980-2011) were purchased for 50% of face value.

Investors paid $75.00 for a $100.00 Series E bond and $50.00 for a $100.00 PAPER Series EE savings bond. It took less time for the E bond to reach its face value (assuming interest rates were the same) than a Series EE bond.

U.S. Savings Bonds were heavily promoted and marketed by the U.S. government at certain times in history.

Some Series E Bonds earned interest for 40 years.

Series E bonds were originally issued for a fixed term of 10 years, E bonds were granted interest extensions that brought their interest-bearing lives to 30 or 40 years, dependent upon the bonds issue date.

E Bonds issued May 1941 – November 1965 earn interest for 40 years and were granted three 10-year extended maturity periods.
E Bonds issued December 1965 – June 1980 earn interest for 30 years and were granted two 10-year extended maturity periods.

All Series E bonds stop earning interest as of 2010.

Important: Electronic EE bonds and Series I Savings Bonds are purchased at face value (a $50 EE or I Bond costs $50).’s complimentary calculator provides current values, interest rates, financial, timing and tax information via a color-coded, Savings Bond Inventory Report including a “what this means to you” explanation. For bond management services, updated values along with important maturity and tax alerts, via monthly e-Bond Statements, sign up for a free 14 day trial of’s unique VIP Membership.


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