Learn how to
gaurentee your EE Savings Bonds earn approximately 3.5% interest regardless of the fixed interest rate assigned to the bond.
Despite recently low-interest rates on EE savings bonds, there’s a simple way they can earn approximately 3.5% interest. Just buy and hold EE bonds for at least 20 years. That’s all you need to do. Be careful! If the bond is redeemed even one day before it reaches 20 years, you will only earn the guaranteed rate that was set at the time the bond was issued.
Currently, EE Savings Bonds issued between November 1 through April 30, 2019, only offer a measly 0.10%* interest rate for the first 20 years.
“At a minimum, Treasury guarantees that a bond’s value will double after 20 years, its original maturity, and it will continue to earn the fixed rate set at the time of issue unless a new rate or rate structure is announced.
If a bond does not double in value as the result of applying the fixed rate for 20 years, the Treasury will make a one-time adjustment at original maturity to make up the difference.”
U.S. Treasury Department.
Savings Bonds are NOT created equal. EE Bonds issued since May 2005 offer a fixed rate of interest. Older EE bonds have different rules, varying interest rates and will reach (initial and final) maturity at different times, depending on the bonds issue date.
To learn values and performance for your Series EE (and Series I) bonds, use a complimentary savings bond calculator, which also includes a printable, color-coded Savings Bond Inventory Report that indicating cash in values, total interest earnings, interest rates, maturity and taxation issues. A “what this means to you” explanation educates investors about each bonds values and performance.
5 Things To Know About The New EE Savings Bond
- Double in value adjustment (if held at least 20 years) applies to bonds issued May 2005 and after.
- Bonds must be held a minimum of one year.
- If redeemed prior to 5 years, a three-month interest penalty is applied.
- Maximum individual purchase amounts of series EE savings bonds is $10,000 per year.
- Bonds earn interest for 30 years (guaranteed rate for first 20 years – considered original maturity date). Interest rate can be adjusted for last 10 years until bond reaches its final maturity. Investors will be notified prior to any rate changes.
Why Isn’t Uncle Sam Promoting High EE Interest Rates?
Recently investors have been turning up their noses on savings bonds due to
*Interest rates for bonds bought between May 1, 2018, through October 31, 2018, is an annual rate of 0.10%.
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