Series EE Savings Bonds

Series EE Savings Bonds!

Series EE Savings Bonds are an accrual-type security in that the interest is paid when the bond is cashed. The interest rate is calculated as 90% of 6-month averages of 5-year Treasury Marketable Securities yields. EE Bonds you purchased between May 1997 and April 30, 2005, are based on 5-year Treasury security yields and earn a variable market-based rate of return. Series EE Bonds issue dated May 2005 and after will earn a fixed rate of interest. EE Bonds are sold at 50% of the face value of the bond and earn interest for up to 30 years. (For example, a $100 EE Bond costs $50.) EE Bonds come in eight denominations, $50, $75, $100, $200, $500, $1,000, $5,000 and $10,000.

You can buy up to $5,000 (which is equivalent to $10,000 face amount) in bonds in your name during any calendar year. Since EE Bonds are sold at one-half their face value, this means you can spend no more than $5,000 on Series EE Bonds registered in your name during any calendar year. If you buy bonds in co-ownership form, you can apply the purchase toward either co-owner or divide it between the two. The limitation doesn't apply to bonds on which you name yourself as a beneficiary, as opposed to those on which you name yourself as an owner or co-owner.

More Series EE and Series I Savings Bond Information: