EE/E Savings Bonds
Series EE savings bonds are safe, low-risk savings products that pay interest based on current market rates for up to 30 years for bonds purchased May 1997 through April 30, 2005*. You may purchase EE Bonds via TreasuryDirect. As a TreasuryDirect account holder, you can purchase, manage, and redeem EE Bonds directly from your Web browser.
*Series EE bonds purchased May 2005 and after will earn a fixed rate of return. See our press release for more information.
Use EE Bonds to:
- Finance education
- Supplement retirement income
- Give as a gift
|Current Rate:||0.50% through October 31, 2014 (fixed rate)|
|Minimum purchase:||$25 for a $25 EE bond when purchased electronically via TreasuryDirect|
(per calendar year):
|$10,000 in TreasuryDirect|
|Denominations:||Electronic bonds via TreasuryDirect: purchase to the penny for $25 or more|
|Issue Method:||Electronic issue in TreasuryDirect accounts|
Rates & Terms
- EE/E Bonds you purchased between May 1997 and April 30, 2005, earn a variable market-based rate of return.
- Series EE Bonds issue dated May 2005 and after will earn a fixed rate of interest.
- They are an accrual-type security, which means interest is added to the bond monthly and paid when you cash in the bond.
- Paper bonds were sold at half the face value; i.e., you paid $25 for a $50 bond.
- Electronic bonds purchased via TreasuryDirect are sold at face value; i.e., you pay $25 for a $25 bond.
- Minimum term of ownership: 1 year
- Interest-earning period: 30 years
- Early redemption penalties:
- Before 5 years, forfeit 3 most recent months' interest
- After 5 years, no penalty
- Interest on savings bonds is subject to taxes imposed under the Internal Revenue Code of 1986. The bonds are exempt from taxation by any State or political subdivision of a State, except for estate or inheritance taxes.
- Interest earnings are subject to Federal income tax.
- Interest earnings may be excluded from Federal income tax when bonds are used to finance education (see education tax exclusions). Restrictions apply.
EE/E Bond-Related FAQs
- How do market rates affect EE bonds?
- Is my EE bond eligible for the Education Tax Exclusion?